In today’s digital world, Software as a Service (SaaS) isn’t a choice; it’s a requirement for competitive and efficient business. As more and more organizations are adopting various SaaS tools, managing these services can’t be overstated. This article will be your ultimate guide to understanding what SaaS Management is and how it’s key to maximizing organizational efficiency.

Section 1: What is SaaS Management? Understanding the Hidden Complexity of Growing SaaS Subscriptions

The SaaS revolution has turned the business world upside down, making specialization software more accessible than ever. But this convenience comes at a cost: IT and finance teams are getting blindsided by a jungle of untracked subscriptions and scattered information.

Companies are wrestling with chaotic spreadsheets and endless expense reports to make sense of their SaaS landscape. The result? Hours of boring admin work each month, even for agile startups.

Worse still, the lack of a single SaaS view means significant financial waste—according to a Statista survey, globally 30% of SaaS spend is being wasted on duplicate, forgotten or unused software.

In an age where SaaS is not a luxury but a major line item in the budget, the need for a disciplined approach to managing these subscriptions has never been more urgent. But how do organizations take control of this complex, ever changing landscape to get the benefits without the downsides? The answer is SaaS Management, a discipline that has been designed to solve this exact problem.

Section 2: The Case for SaaS Management

Financial

Unmanaged SaaS Subscriptions

When SaaS subscriptions are unmanaged, it can lead to ‘SaaS sprawl’, a term that means the uncontrolled growth of SaaS apps within an organization. The risks are twofold: financial waste and unused resources. In a world where many SaaS vendors offer easy subscription models, it’s common for departments or even individual employees to buy SaaS tools. Without oversight, this can quickly lead to duplicate tools, unused licenses, and spiraling costs.

Cost Optimisation

SaaS spend management isn’t just about saving costs; it’s about getting the most value out of your investment. Regular SaaS usage auditing ensures the organization isn’t paying for redundant or underutilized services. Through SaaS Management companies can find volume discounts, negotiate better contract terms and ensure they’re using the most cost effective solutions for their needs.

Security and Compliance

Security Risks and Compliance Requirements, SOC2

One of the top concerns for organizations using third party SaaS vendors is security. A key certification to look for is SOC2 which sets strict standards on security, availability and data integrity. This is where SaaS Management Platforms (SMPs) come in. They automate critical security operations like access requests and onboarding/offboarding processes. By doing so they make the process consistent, auditable and SOC2 compliant, making compliance much easier.

Data Governance in a SaaS Ecosystem

Data governance is no longer optional but a must, especially when dealing with multiple SaaS vendors that handle organizational data. Again an SMP can help here. By providing automated frameworks for data storage, access and sharing protocols SMPs create a streamlined and auditable path to compliance with international standards like ISO. So not only is your data managed compliantly but that compliance is provable, a key requirement for both internal and external governance.

Operational Efficiency

Workflow Silos

Without a SaaS Management tool or strategy in place different departments often operate in silos, each with their own set of tools. These workflow silos can lead to inefficiencies like duplicated work, inconsistent data and slowed down processes all of which are bad for operational efficiency. A common example is project and work management tools where you may find several similar apps in use within and across teams.

Disjointed SaaS Tools and Productivity

When a SaaS management tool is not in place and SaaS tools are disjointed and don’t talk to each other, employees have to spend extra time manually transferring data from one system to another. This can lead to errors, reduced productivity and ultimately frustrated employees who find themselves bogged down with administrative tasks instead of focusing on their core work.

Cross Functional Synergy

How SaaS Tools Can Help or Hinder Collaboration

The same SaaS tools that are supposed to simplify operations can become barriers to cross functional collaboration if not managed properly. When each department uses different tools without a centralized management strategy it can create communication and data sharing challenges across the organization.

Aligning SaaS Portfolios Across Departments

To get true cross functional synergy you need to align the SaaS portfolios across different departments. This alignment ensures all departments are working with the same set of tools that serve the organization’s overall goals. Centralised SaaS Management can help find the best tools for each department while facilitating interdepartmental collaboration.

SaaS Management is critical for financial discipline, security frameworks, operational efficiency and cross functional collaboration within organizations. It’s not a task to be delegated but a strategic imperative that impacts the organization’s bottom line and operational excellence.

Section 3: SaaS Management Components

Inventory

Tracking All Active SaaS Applications

Inventory starts with understanding the SaaS management process and knowing every SaaS tool in the organization. This means an audit to track all active subscriptions, number of licenses, usage metrics and costs. This is often referred to as “Discovery” which given the SaaS management challenges above is not a one time exercise but an ongoing process. By having an up to date inventory, organizations have a better view of their SaaS landscape and can quickly spot opportunities for optimisation.

Zombie Apps

‘Zombie’ apps are SaaS tools that have been subscribed to but are not used or underused. These tools are a direct financial drain as the organization is paying for a non performing asset. By identifying these ‘zombie’ SaaS purchases organizations can decide to repurpose, retrain or remove these subscriptions to better utilize their resources.

User Management

Role Based Access Control

With multiple SaaS tools in use not every employee should have access to all functionality or data. Role based access control ensures individuals can only access the tools and data they need to do their job. This improves security and declutters the user interface for employees giving them a more streamlined experience. The ‘human’ aspect of access control is how employees are made aware of the SaaS tools in the business and how easy it is for them to request access to those tools.

Onboarding and Offboarding

When employees join or leave an organization it’s critical to manage their access to SaaS tools. A structured onboarding process ensures new hires have all the tools they need from day one. An efficient offboarding process ensures departing employees no longer have access to organizational data and SaaS licenses are recovered.

Compliance through SaaS Management Platforms

Automating SOC2 Compliance

Compliance is critical in today’s world of data breaches and strict data privacy regulations. SaaS management tools make this task much simpler by automating processes that ensure your SaaS portfolio is compliant with important standards like SOC2. With features like automated access controls and regular security checks SMPs make it easier to be compliant and to prove compliance.

Continuous Monitoring

While traditional compliance audits are time consuming and periodic SaaS Management Platforms offer a more proactive approach through continuous monitoring. These platforms give real time visibility into the compliance status of your SaaS applications, flagging any potential vulnerabilities or deviations from standards like SOC2. This real time monitoring allows for immediate action to be taken, minimizing risk and ensuring you are always compliant.

Contract Renewals and Negotiations

A key part of SaaS management is keeping on top of contract renewal dates with software vendors. This prevents service interruption and provides an opportunity to renegotiate. With usage analytics data, organizations are in a stronger position to negotiate contracts that better suit their needs and budgets.

SaaS management encompasses the many aspects of managing SaaS tools. By addressing each of these aspects in turn, organizations can get the most value from their SaaS investments and minimize risk.

Section 4: SaaS Management Platforms: A Unified Solution

What are SaaS Management Platforms?

What do SaaS Management Platforms do?

SaaS Management Platforms like Trelica are centralized solutions that manage and control the usage, costs, compliance and security of SaaS applications across the organization. They act as a command center, giving a single pane of glass into the entire SaaS estate.

The Problems They Solve

For organizations struggling with SaaS sprawl, compliance issues and operational inefficiencies SaaS Management Platforms offer a simple solution. These platforms automate many tasks that would otherwise require manual intervention such as inventory tracking, cost optimisation and employee lifecycle management. By consolidating these tasks into one platform, organizations can save time, reduce errors and make better decisions.

Features to Look for in a SaaS Management Platform

Inventory Tracking

One of the key features to look for is robust inventory tracking. This feature, commonly known as ‘Discovery’, will give you a list of all the SaaS applications in use, the departments that use them and the cost associated with each in the software stack.

Cost Analysis and Optimisation

The platform should have tools to analyze the cost of each SaaS application and identify optimization opportunities for SaaS solutions. This will allow organizations to kill off ‘zombie’ apps and renegotiate existing contracts for better terms.

Employee Lifecycle Management

SaaS management software should manage processes for employee onboarding, offboarding and ad hoc access requests - so employee access to business critical tools is managed in a timely, efficient and auditable way.

How to Choose a SaaS Management Platform

Scalability, Ease of Use, Vendor Reputation

Choosing a SaaS Management Platform (SMP) involves considering many factors but three key ones are scalability, ease of use and vendor reputation.

  • Scalability: The platform should be able to grow with your organization. As you add more SaaS applications the platform should be able to manage them without performance issues.
  • Stability: to be effective SMPs need to be integrated with other tools in your business. It’s easy for a vendor to claim they have hundreds of integrations; it’s important to have confidence in the quality and reliability of these connections and that the data being gathered is accurate.
  • Ease of Use: A platform that requires extensive training will impede adoption rates and reduce its effectiveness. Look for platforms with intuitive interfaces and easy navigation.
  • Vendor Reputation: Always check for reviews and ask for references. A platform is only as good as the company that backs it. Look for vendors with a track record of excellent customer support, continuous updates and a strong customer base. Seeing as we’re on the topic, why not take a look at Trelica’s 5-star rating and reviews on G2?

In summary, SaaS Management Platforms solve many of the problems organizations face when managing their growing SaaS estates. By choosing a platform that has the right mix of features, scalability and support organizations can take a big step towards maximizing their operational efficiency and SaaS ROI.

5. Best Practices for SaaS Management

SaaS Management doesn’t stop with choosing the right platform. Organizations should have an ongoing strategy for managing their SaaS ecosystem. Here are some best practices to use as the foundation of a SaaS Management strategy.

Monitoring, not Auditing

The software audit mindset was born in the days of installed and hosted software and is becoming an outdated Software Asset Management (SAM) approach. SaaS adoption and license consumption is far more dynamic so SaaS Management needs to be equally as agile. Regular monitoring of your SaaS portfolio is key to identifying duplicates, underutilized resources and potential security vulnerabilities. Best practice is to automate this monitoring wherever possible. The practice will not only keep you on top of your inventory but also give you visibility into usage patterns which can be invaluable when renegotiating contracts or planning for scale.

Inter-Departmental Communication

SaaS tools serve multiple departments within an organization. So clear and regular communication between departments is key to avoiding duplication and ensuring everyone’s needs are met. Firstly, all employees should know what SaaS tools are already approved and in use, whether in their department or elsewhere in the organization. When a business need can’t be met by an existing tool, there should be a process for reviewing options and trying to address additional business needs with any new tool wherever possible. This will prevent duplication and encourage more cross-functional collaboration.

Transparency is not just about announcing new acquisitions; it’s also about sharing knowledge on how different tools are being used effectively, lessons learned and best practices. This type of information sharing will boost productivity across the organization.

Keep it personal

SaaS Management sits at the intersection of multiple departments and, critically, the relationship between IT and their ‘customer’ i.e. the end user in the business. From users requesting access to the workflows that ask users to return their underutilized licenses, human interaction is a key part of any SaaS Management programme. This means meeting users where they are (e.g. Slack or Teams) and using language that is clear and collaborative. The days of IT sitting in the control tower and issuing instructions are behind us. The modern, distributed workforce expects a partner in IT and that’s an opportunity for IT to move out of the back office and take the strategic role it deserves.

Implementing these best practices will help you get your SaaS Management strategy in shape. When combined with a SaaS Management Platform these best practices will help organizations navigate the SaaS ecosystem and maximize efficiency, cost savings and security.

Summary

In an era where SaaS tools are no longer optional but part of business as usual, SaaS Management is a strategic imperative. Unmanaged SaaS spending risk financial waste, security vulnerabilities and even legal issues especially with standards like SOC2 in play.

A SaaS Management strategy in place, backed by a platform like Trelica can turn this complexity into an asset. Add in best practices like regular monitoring and inter-departmental communication and SaaS tools become not just utilities but business enablers.

In short, disciplined SaaS Management is not a nice to have but a must have for risk mitigation and competitiveness.

Next Steps: How to Make a Business Case for SaaS Management

Convinced you need structured SaaS Management but not sure how to make the business case for it? We have got you covered: a no strings attached trial with Trelica.

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