Managing software applications presents challenges for IT managers and business leaders.

They often face difficulties related to multiple subscriptions, vendor relationships, and user access requirements.

This complexity can lead to wasted resources and create security vulnerabilities, as well as compliance issues. For example, many organisations experience unmonitored spending on SaaS applications, resulting in the loss of up to 30% of their software budget on unused subscriptions.

To address these challenges and optimise their SaaS portfolio, organisations need a strategic approach to SaaS application management.

Today, we are going to explore more about managing SaaS applications, including it’s challenges and the components of the SaaS management process. We also provide some top SaaS management platform recommendations, so you can manage your software better.

So, without further ado, let’s get to it.

Challenges in Managing SaaS Applications

Managing Software as a Service (SaaS) applications presents organisations with a range of unique challenges that can impact efficiency and cost-effectiveness. Understanding these challenges is crucial for developing effective management strategies.

Visibility Issues

One major challenge is the lack of visibility into all subscribed applications.

Organisations often do not maintain a centralised inventory of their SaaS tools, making it difficult to determine which applications are actively in use. This lack of transparency can lead to duplicate subscriptions, where multiple departments unknowingly purchase similar tools.

Without a comprehensive view, organisations struggle to assess the value of each application, resulting in wasted resources and missed opportunities for optimisation.

Cost Management

Tracking spending across various SaaS services demands careful oversight and strategic planning.

Departments may independently choose and subscribe to applications without coordinating with one another, leading to unanticipated budget overruns. This decentralisation of purchasing complicates financial management and can inflate overall software expenses.

Consequently, organisations may find it challenging to align their software spending with operational goals, prompting the need for better financial governance.

Compliance and Security Risks

Ensuring compliance with industry regulations and standards is vital for any organisation utilising SaaS applications.

Non-compliance can result in substantial financial penalties and reputational damage. Organisations must ensure that all applications adhere to relevant regulations, such as data protection laws and industry-specific guidelines. Additionally, a lack of compliance may expose the organisation to legal liabilities, making it imperative to implement a robust compliance monitoring system.

User Access Confusion

The complexity of user access management can create significant confusion within organisations.

Ambiguous access guidelines may lead to unauthorised usage of applications, posing a risk to sensitive data. This confusion can also result in operational inefficiencies, as employees may struggle to navigate the access protocols for various tools.

A clear access management strategy is essential to protect sensitive information while fostering a productive work environment.

Integration Challenges

Integrating various SaaS applications with existing systems presents another critical challenge.

Many organisations rely on a mix of legacy systems and modern applications, and ensuring these tools work together seamlessly is crucial for maintaining efficient workflows. Integration failures can cause disruptions that hinder productivity and create frustration among employees. To overcome this challenge, organisations must prioritise integration planning and invest in tools that facilitate smooth connectivity between applications.

More in Nexalab’s blog: SaaS Management Tools Guide for Better Control Over Software Investments

Components of Effective SaaS Application Management

Effective SaaS application management involves several components that work together to enhance overall performance and security. According to Josys, at least there are at least 5 things that make SaaS application management effective.

Maintaining a central inventory can help organisations track subscription costs, renewal dates, and user access information.

Keeping this inventory updated allows stakeholders to stay informed about active applications, which may help prevent overlooking any subscriptions.

For example, an organised inventory helps project managers see what resources are available before starting new projects. This clarity supports better decision-making and allows teams to plan effectively.

Usage monitoring and reporting offer a way to gauge employee engagement with each application.

Tracking how and when employees use these tools helps organisations gain insights into their effectiveness.

Insightful data on usage patterns can guide decisions about renewals or replacements. This approach allows companies to allocate resources more effectively, ensuring that they invest in tools that genuinely meet their needs.

For example, if a tool shows low engagement, it may prompt a reassessment of its value to the organisation.

Budgeting and cost control are other important components of SaaS application management.

Aligning software expenses with organisational goals can assist in monitoring spending while revealing potential savings. Regularly reviewing expenditures against budget forecasts helps organisations identify discrepancies, potentially guiding adjustments in spending strategies.

This practice allows for the evaluation of whether certain tools meet financial expectations.

Establishing security protocols adds a layer of protection for sensitive data. Implementing measures to safeguard data from breaches contributes to overall security efforts.

Conducting regular security reviews can help organisations stay aware of emerging threats.

Additionally, fostering a culture of security awareness among employees supports safer practices. Ongoing training initiatives can equip staff with knowledge about potential risks, encouraging adherence to established protocols.

Training programmes can increase the utilisation of SaaS applications.

Providing ongoing user education enables employees to use tools effectively, which may lead to improved productivity. Encouraging staff to explore features within each application touches on opportunities for enhancing workflows and innovation.

Employees who feel confident using their tools might find ways to streamline processes.

Integrating these components creates a framework for managing SaaS applications.

This adaptable approach allows organisations to respond to evolving needs while aiming for effective performance.

Through consistent management and a focus on improvement, organisations can better navigate the complexities of modern software landscapes and optimise their SaaS investments.

Best Practices for SaaS Application Management

To maximise the effectiveness of SaaS application management, organisations should adopt several best practices that promote efficiency and transparency.

Conduct Regular Audits: Regular audits provide an opportunity to spot unused tools and redundant subscriptions. Such reviews can yield valuable insights into the software landscape and may highlight areas for potential cost savings.

Strengthen Vendor Relationships: Building strong communication with SaaS providers may lead to better contract terms and improved service delivery. Establishing rapport can facilitate regular check-ins, allowing discussions about the organisation’s evolving needs and any challenges that arise.

Integrate Tools for Streamlined Workflows: Utilising integration solutions allows for improved collaboration among teams. When applications work well together, it becomes easier for everyone to access necessary information.

Establish Clear Usage Policies: Clear guidelines for software usage and data security can help prevent unauthorised access and protect sensitive information. Defining acceptable use, security measures, and compliance requirements can assist in ensuring that everyone understands their responsibilities when using SaaS applications.

Encourage User Feedback: Seeking feedback from employees who use the applications can identify issues and suggest improvements. Involving users in the management process can provide valuable insights and foster a sense of ownership. When employees feel their opinions matter, they may be more inclined to engage with the tools effectively.

While these best practices are not “a must,” they provide a framework to help you manage SaaS applications effectively. This approach can create an environment that supports operational excellence while aligning with the strategic goals of the business.

Top SaaS Application Management Tools and Platforms

Managing SaaS applications can be overwhelming as the number of tools at your disposal grows, leading to inefficiencies, a lack of visibility, and potential overspending. Shadow IT complicates matters further when employees purchase software without IT’s knowledge, risking both licence management and data security.

To address these challenges, you need effective SaaS management solutions that provide clear visibility into your software landscape and streamline administrative tasks.

Here are some top SaaS application management tools and platforms designed to help you take control, boost productivity, and optimise costs.

1. Octobits

Octobits is a comprehensive SaaS management platform designed to give organisations centralised control over their software applications.

Key features include cost tracking, usage analytics, and compliance monitoring, which empower businesses to understand their SaaS expenditure and ensure all applications meet regulatory standards. Organisations can leverage Octobits to identify overlapping subscriptions and make data-driven decisions about renewals.

2. BetterCloud

BetterCloud focuses primarily on enhancing data visibility and security within SaaS environments.

It equips IT teams with the ability to automate security protocols, manage user access, and monitor application usage effectively. With BetterCloud, organisations can readily identify potential security risks and ensure that sensitive data is protected across their SaaS applications. The platform’s automation features simplify onboarding and offboarding processes, ensuring users have the right access.

3. Torii

Torii shines in providing organisations with insights into their application usage and spending patterns.

Torii empowers IT and finance teams to monitor product utilisation effectively, enabling them to identify unused or redundant licences. It consolidates data from various applications, giving you a comprehensive view of software consumption that supports informed financial decisions. Furthermore, Torii provides tailored recommendations to optimise subscriptions based on actual usage patterns.

4. Blissfully (Re-brand to Vendr)

Blissfully specialises in budget tracking and vendor management, enabling organisations to align their software expenses with established business goals.

With features that monitor renewal dates and track expenses, Blissfully allows companies to stay within budget while ensuring they have the necessary tools to operate effectively. The platform also helps maintain strong vendor relationships by tracking contracts and providing insights into vendor performance.

5. Zylo

Zylo stands out for its analytics capabilities in SaaS management, providing organisations with deep insights into their software spending and utilisation.

The platform identifies opportunities for cost savings and ensures compliance with industry regulations. Zylo provides a detailed view of application performance, helping you to make strategic decisions about their software portfolio and enhance budget management.

6. Productiv

Productiv enhances user engagement by providing organisations with comprehensive data analytics on application usage.

The platform focuses on understanding user interactions with software, helping teams identify gaps in adoption and areas for improvement. Productiv’s insights enable organisations to craft targeted strategies that encourage effective application use, ultimately maximising the return on their software investments.

7. Josys

Josys is designed to facilitate governance and compliance across SaaS applications.

The platform provides tools for evaluating application performance and ensuring that all software used aligns with organisational standards. By offering a centralised view of all SaaS applications, Josys helps organisations maintain better control over their technology landscape, reducing the risk of unauthorised software usage and enhancing operational efficiency.

More in Nexalab’s blog: SaaS Contract Management Explained, Effective Techniques for Businesses

Conclusion

Effective SaaS application management can significantly impact how organisations utilise their software investments while maintaining security and compliance. Managing multiple applications often presents challenges, such as overspending on unused subscriptions or struggling with vendor relationships.

Octobits by Nexalab is a solution if you are looking to simplify your SaaS management efforts. This SaaS management platform provides a comprehensive approach to tracking and managing applications, delivering insights into usage patterns, costs, and compliance requirements. Its user-friendly interface and robust analytics allow you to identify which subscriptions deliver value and which may need reevaluation.

Contact Nexalab today to learn how Octobits can boost your organisation’s efficiency and success!