What are the top challenges of managing a SaaS application portfolio?

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In the absence of efficient Software as a Service (SaaS) Management, organizations encounter significant difficulties in accurately monitoring, evaluating, and regulating crucial SaaS metrics such as usage, expenditure, return on investment (ROI), and compliance. The following are some of the foremost challenges that impede organizations from effectively addressing these issues.

Gaining visibility into all SaaS apps

Acquiring comprehensive insight into all Software as a Service (SaaS) applications is a challenging task due to the vast number of applications present in a portfolio, which are frequently added or removed. The utilization of applications by employees without the IT department’s knowledge or authorization, teams procuring and administering their own applications, and the departure of employees who possess applications further exacerbate this issue. The aforementioned factors contribute to the complexity of this problem.

Identifying which SaaS apps are being used and how

Determining the SaaS applications that are being utilized and the manner in which they are procured and accessed by employees necessitates a continuous monitoring of various systems, including Single Sign-On (SSO), financial, and expense systems. Despite such efforts, certain applications may still evade detection. Furthermore, companies typically rely on SSO logins and vendor reports to comprehend usage patterns. Regrettably, such data is frequently inadequate in terms of granularity and timeliness, thereby impeding the ability to take effective measures.

Ensuring SaaS apps are delivering value

Ensuring the delivery of value by SaaS applications poses certain difficulties. The absence of quantifiable usage metrics presents a challenge in comprehending the worth of these applications, particularly when diverse stakeholders hold varying expectations. Additionally, the identification of user needs proves to be a formidable task, impeding the assessment of whether a SaaS application is indeed providing value. Furthermore, calculating the cost of a SaaS application and its return on investment becomes intricate, particularly when it is utilized by different departments or teams with varying degrees of adoption.

Managing SaaS renewals

Managing Software as a Service (SaaS) renewals poses a considerable challenge due to the frequent need for contract renewals. It becomes increasingly difficult to keep track of renewal dates, and the absence of usage data further complicates the decision-making process regarding the necessity of an application and the justification for renewal. Additionally, procurement teams face significant obstacles in aligning stakeholders and coordinating reviews and approvals across disparate systems.

Automating SaaS license provisioning

Automating the provisioning of SaaS licenses poses significant challenges for organizations. One of these challenges stems from the intricate nature of licensing models, as SaaS vendors often offer a wide array of options with varying pricing structures, user limitations, and feature sets. Navigating and automating these models can prove to be a complex task, particularly for organizations that utilize multiple SaaS applications with differing licensing models. Another obstacle lies in the limited visibility into license usage, which hampers the ability to determine when additional licenses are required or when unused licenses can be reclaimed. This lack of insight can result in unnecessary expenses or the underutilization of licenses. Furthermore, integrating SaaS license provisioning with existing IT systems and processes can present difficulties, particularly when SaaS applications are hosted in the cloud and necessitate API integration for automated license provisioning. Lastly, the absence of standardization across SaaS vendors makes it challenging to implement a consistent approach to license provisioning and management.

Maintaining security and compliance

Given that Software as a Service (SaaS) applications are typically hosted and managed by third-party vendors, enforcing security policies and ensuring compliance with industry-specific regulations or standards can be challenging. Furthermore, managing multiple SaaS applications with varying security requirements or compliance standards can be complex, leading to confusion or oversight. Moreover, the use of shadow IT can pose security risks and compliance issues. The lack of visibility into SaaS application usage can also make it difficult to identify potential security vulnerabilities or compliance gaps. The rapid pace of innovation and updates to SaaS applications further complicates the task of keeping up with security and compliance requirements.

Providing employees visibility into available SaaS apps

In the absence of a centralized system or process for managing Software as a Service (SaaS) applications, employees face difficulties in discovering the availability of such apps and accessing them. This lack of visibility can result in frustration, decreased productivity, and the potential use of unauthorized SaaS apps without the approval of the IT department. Furthermore, the rapid pace of innovation in SaaS apps poses a challenge in keeping up with new or updated applications that may be relevant to employees. The use of multiple SaaS vendors with varying user interfaces and access methods further complicates the task of providing a consistent and streamlined experience for employees. Lastly, concerns regarding security and compliance may restrict IT’s ability to grant employees unrestricted access to SaaS apps, especially those that involve sensitive data or require access to internal systems.