As businesses increasingly adopt cloud-first strategies, managing Software as a Service (SaaS) applications has become a pressing challenge.
A blog post from Sastrify mentions that Gartner predicts that 85% of enterprises will operate on a ‘cloud-first’ policy by 2025.
However, a significant issue looms: an estimated 35% of SaaS spending is wasted on forgotten, unused, and duplicate software.
This inefficiency not only strains budgets but complicates software management, making it essential for IT managers and business owners to adopt effective SaaS management tools.
The consequences of poor SaaS management can be severe, leading to wasted resources, security vulnerabilities, and missed opportunities for cost savings.
Effective SaaS management can determine whether the organisation achieves high adoption rates during onboarding or wastes thousands on tools that provide little to no business benefit.
Fortunately, a reliable SaaS management tool can help visualise company-wide software spending, streamline operations, and prepare for contract renewal negotiations.
Today, we discuss what SaaS management is, including its benefits for your business and how to select the right tool for your business.
So, without further ado, let’s get to it.
What is a SaaS Management Tool?
SaaS management tools are platforms that help organisations monitor and manage their software portfolios. These tools cover the complete lifecycle of software applications, including purchasing, licencing, onboarding, and offboarding. They provide a structured approach to managing software use and costs within a business.
SaaS management processes include several key components, which are operations, spend, vendor, and shadow IT management.
Key Components of SaaS Management
- SaaS Operations Management: Streamlining operations and automating manual tasks is the primary focus of this component. Automation increases operational efficiency and reduces errors, allowing teams to concentrate on strategic initiatives. This includes automating processes such as user lifecycle management, app deployment, and management of user access and permissions.
- SaaS Spend Management: Tracking, analysing, and managing SaaS expenses helps identify unused licences, underutilised applications, and opportunities for cost reduction. Businesses can optimise their investments and reduce unnecessary spending through scrutiny of application costs.
- SaaS Vendor Management: Managing relationships with software vendors is crucial. This component helps oversee licence renewals, service levels, and subscription management. Keeping contracts up-to-date prevents unexpected costs and enables better negotiations during renewals.
- Shadow IT Management: Shadow IT encompasses SaaS applications used without IT authorisation. Such applications can introduce compliance and security risks. Effective SaaS management requires discovering and monitoring these applications to ensure compliance with company policies and protect the organisation’s data integrity.
More in Nexalab’s blog: SaaS Contract Management Explained, Effective Techniques for Businesses
Benefits of SaaS Management for Business
As your business starts to scale and your Software as a Service (SaaS) usage is growing, doing. Proper management is increasingly important.
Effective SaaS management will help you optimise software usage and control costs. Without a proper management tool, companies may struggle to keep track of their applications, leading to wasted resources and inefficiencies.
Implementing a SaaS management tool provides key advantages that help organisations address these challenges and maintain operational effectiveness during periods of growth.
Operational Efficiency
Adopting effective SaaS management practices significantly increases operational efficiency. Automation minimises the time and effort required for manual application. management tasks, including tracking usage, managing renewals, and maintaining compliance.
Visibility into Your SaaS Stack
SaaS management tools provide a comprehensive view of application usage.
These tools offer actionable insights into engagement analytics, allowing for the identification and discovery of all SaaS applications throughout the organisation. This visibility extends to usage, spending, and compliance in real time.
Employee Satisfaction
Ensuring that teams have access to the right tools enhances employee satisfaction. With effective SaaS management, organisations can minimise frustration and empower employees to be more productive.
Streamlined Onboarding and Offboarding
Efficient onboarding of new employees and offboarding of departing staff becomes straightforward with SaaS management.
A centralised approach allows for the easy assignment or revocation of accounts and licences, ensuring smooth transitions for all parties involved.
Control and Management of SaaS Spend
Effective SaaS management facilitates a reduction in subscription costs. Identifying and managing unused licences while optimising spending on applications yields cost savings. A comprehensive view of SaaS expenditures helps pinpoint opportunities for more efficient resource allocation.
Data Security, Risk Reduction, and Compliance
In an environment characterised by rising compliance requirements and cybersecurity threats, SaaS management plays a critical role in securing organisational data. Implementing security protocols across all SaaS applications helps mitigate potential threats while maintaining compliance with relevant policies.
How to Choose a SaaS Management Platform for Your Business
You need to choose your SaaS management platform carefully to make sure they align with your specific needs and goals. With numerous options available, taking the time to evaluate your choices can lead to better decision-making.
When you decide to use a SaaS management platform, make sure to consider these factors during the selection process:
1. Identify Your Needs
Start with a clear understanding of your organisation’s specific requirements.
Look at the number of applications your team currently uses and think about any anticipated growth in this area. Review your budget to see how much you can allocate for a SaaS management tool.
Additionally, list the features that matter most to your team, such as reporting capabilities and analytics. This clarity will help you find a tool that fits your organisation’s goals.
2. Evaluate Features
Focus on key features that align with your needs. Important functionalities to consider include:
- SaaS Stack Discovery: The ability to automatically detect and list all SaaS applications in use. This function helps you maintain an accurate software inventory.
- Cost Optimisation: Insights into spending patterns and recommendations for saving money. Look for tools that identify unused licences and overlapping software.
- Vendor Management: Features for managing relationships with software vendors, including tracking contract renewals and monitoring performance.
- Security and Compliance Tools: Determine if the platform offers features that help protect data and maintain compliance with regulations.
3. Consider User Experience
A tool that is easy to use encourages adoption within your organisation.
Look for platforms with straightforward interfaces and simple navigation. A user-friendly design can help employees engage with the tool and take full advantage of its capabilities. Check if the platform offers onboarding resources to help users get started effectively.
4. Assess Integration Capabilities
A good SaaS management platform should work well with your current systems and applications.
Check how easily it can connect with other software your organisation uses. This capability is vital for maintaining a smooth workflow. Look for platforms that offer APIs or built-in connections to popular software systems.
5. Read Reviews and Case Studies
Research user reviews and case studies to gain insights into how other organisations have worked with similar tools. Pay attention to feedback regarding ease of use and responsiveness of customer support. Case studies that highlight specific benefits for companies similar to yours can offer valuable context for your decision.
6. Test the Software
Take advantage of free trials or demos offered by many SaaS management platforms.
Engage with the trial version to explore its features and determine how well it meets your organisation’s needs. Involve team members from different areas to get varied perspectives on usability and functionality during the testing phase.
7. Consider Scalability
Look at whether the SaaS management platform can grow with your organisation.
Assess its capacity to handle more users, applications, and data without a drop in performance. A tool that scales well saves time and resources in the long run, supporting your organisation’s ambitions.
Evaluating these factors will help you make a well-informed decision when choosing a SaaS management platform. The right tool will streamline your software management processes and support the overall effectiveness of your organisation as it grows.
More in Nexalab’s blog: SaaS User Management, Definition, Benefits, and Best Practices
Conclusion
Effective SaaS management plays a vital role in optimising software investments and enhancing operational efficiency in today’s digital landscape. Recognising the benefits and implementing best practices allows IT managers and business owners to streamline operations, cut costs, and increase the value of their software applications. Focusing on SaaS management improves resource allocation and contributes to overall business growth.
Octobits by Nexalab is your ultimate solution for SaaS management. This powerful SaaS management platform enables organisations to take charge of their SaaS application processes with ease. With features designed to boost visibility, control spending, and enhance overall efficiency, Octobits transforms how you manage your software investments.
Contact Nexalab today to learn how Octobits can help with your SaaS management strategy.
