The terms “SaaS management software,” “SaaS Management Platform,” and “SaaS management solution” all pertain to systems designed to facilitate the management of one’s SaaS portfolio. While various naming conventions may be encountered during the process of researching SaaS management options, they all essentially encompass a similar range of tools.
What are the benefits of a SaaS Management Platform?
Organizations initiate the evaluation of Software Management Platforms (SMPs) for a multitude of reasons. Frequently, IT teams seek a means to attain comprehensive insight into the applications utilized throughout the organization and enhance operational processes. Procurement teams aspire to effectively administer contract renewals and attain a competitive advantage in negotiations. Moreover, in the current economic climate, finance teams are compelled to guarantee that the business optimizes the value derived from its investments.
The optimal Software as a Service (SaaS) Management Platform offers your organization the necessary data and insights to proficiently:
- Govern your SaaS portfolio
- Rationalize your SaaS portfolio
- Streamline SaaS procurement
Govern your SaaS portfolio
According to our data, it has been observed that 53% of the average SaaS portfolio consists of shadow IT. These applications are purchased by teams and departments that are not under the ownership or management of the IT department. As of late 2020, it was found that 49% of cyberattacks were a result of shadow IT. To address this issue, Strategic Management Platforms (SMPs) can offer complete visibility into the SaaS applications being used throughout your organization. Additionally, they can provide compliance certification tracking for these discovered applications. This enables IT teams to gain a better understanding of the organization’s risk exposure and take necessary actions against non-compliant applications.
The visibility provided by SMPs not only helps in identifying the applications present in your SaaS portfolio, but also provides insights into their usage, engagement, and associated costs. This information can be further segmented at the team and user level, allowing for a comprehensive understanding of the application costs associated with each department. This knowledge can guide efforts to improve application adoption by focusing on specific areas.
Furthermore, centralizing contract visibility and management is another crucial aspect of effectively governing your SaaS portfolio. Procurement teams require easy access to detailed contract information in order to carry out their responsibilities efficiently and proactively manage renewals. An SMP can serve as a centralized location for all software contract information, providing teams with the necessary resources to fulfill their tasks effectively.
Rationalize your SaaS portfolio
It has come to our attention that a mere 45% of application licenses procured by organizations are being utilized by their employees on a regular basis. This represents a significant amount of wasteful expenditure on Software as a Service (SaaS). To address this issue, Service Management Platforms (SMPs) offer a viable solution by allowing IT departments to compare and consolidate redundant applications, as well as optimize app licenses to ensure that the organization only pays for what is being utilized. We encourage you to explore IT cost optimization strategies to learn more about this approach.
Effective management of licenses is a crucial aspect of rationalizing your SaaS portfolio. However, it can be challenging for organizations to sustainably manage SaaS licenses, as it can quickly become a full-time job. SMPs can alleviate this burden by automating license provisioning, reclamation, and other manual tasks, reducing IT time spent by up to 90%. This can be achieved by implementing automated approval workflows for IT-sanctioned applications and setting custom thresholds to remove access or downgrade employee licenses based on app and feature usage.
Streamline SaaS procurement
In order to optimize the procurement of Software as a Service (SaaS), it is imperative for businesses to maintain a proactive approach towards managing upcoming renewals. Procurement teams can achieve this by utilizing Software Management Platforms (SMPs), which consolidate contracts, calendars, alerts, and usage data into a single, unified system.
Currently, the software procurement process in most organizations is fragmented across multiple systems, resulting in isolated data. This creates a cumbersome experience for procurement teams, who must navigate through various people, processes, and data to purchase and renew software. However, by implementing an SMP that automates procurement workflows for software intake and renewal, while also providing license rightsizing recommendations and pricing benchmarks, teams can streamline the procurement process, mitigate risk, and negotiate more effectively.
