Identify and Eliminate SaaS Bloat Using SaaS Spend Optimization Software
How ControlHippo Helps You Save Money on SaaS?
The app gives the finance team complete visibility across SaaS applications, helping them fine-tune SaaS expenses.
Admins can monitor, track, and manage SaaS infrastructure from a single spot without switching between tabs.
Merging Similar Apps
As a leading SaaS spend management platform, it also helps you merge similar apps with overlapping functions.
Usage Based Renewal
Our SaaS spend management software provides organizations insights into app usage, helping them in renewal.
Gain Complete Control Over Your SaaS App Usage
ControlHippo– a SaaS management platform, allows you to track, monitor, and analyze Saas app usage. Based on data such as ROI, you can decide whether to renew the subscription for that app. Ultimately, you can unsubscribe from apps that are no longer being used and improve your SaaS portfolio.
Significantly Reduce Your SaaS Spend With ControlHippo
Enhanced SaaS app usage monitoring also enables organizations to filter and remove unnecessary apps from their portfolio, lowering SaaS costs. Consolidate unnecessary SaaS licenses and review your SaaS spending regularly. In addition to carrying out usage-based app renewal, you can also merge apps with overlapping functionalities using our saas spend management platform.
SaaS Spend Management FAQ’s
Use ControlHippo to plug SaaS leaks, reduce SaaS costs, and increase ROI
Asses & Optimize
Analyze your SaaS app usage and optimize your spending.
SaaS Ops Management
Improve performance by integrating multiple business apps.
SaaS Spend Management: How Can I Reduce My SaaS Spend?
While we have all heard the term spend management, the term SaaS spend management is relatively new for most of us. Most businesses use Software-as-a-service (SaaS) tools in different capacities, and SaaS spending monitor accounts for a significant investment in any business today.
SaaS applications are rapidly becoming ubiquitous for organizations, and with too many SaaS tools being in use, it is hard to detect:
- Which ones are rarely used?
- Which of their functionalities/permissions are overlapping/interfering?
- Which ones are redundant and incur additional costs?
This is why most organizations use SaaS spends management software.
What is SaaS Spend Management?
SaaS spend management involves finding and controlling of SaaS costs how much is being spent on SaaS tools. This includes discovering all the applications present within your organization, adjusting the number of software licenses/plans to get the best value for the company, and removing all unnecessary expenses due to unplanned renewals.
How Can Uncontrolled SaaS Spend Impact An Organization?
Though organizations and individuals have been using software for the past couple of decades, all applications are becoming SaaS-based, i.e., they can be accessed and used directly via the internet without downloading. This ease of use and accessibility is why most firms are increasing their SaaS spending.
Keeping track of saas applications, SaaS expense management , users and security can easily be done using SaaS spend management toolsAs per the latest statistics, SaaS is one of the fastest-growing segments in IT, which has been growing by approximately since 2016. Additionally, organizations with over a thousand employees use over 150 SaaS applications on average.
But how do SaaS applications cause excess spending, and why do we need a SaaS spend management software? Let us find out.
Key Reasons For Excessive SaaS Spending
Most organizations overspend on SaaS tools for the following reasons:
Most employees and departments use SaaS tools without the knowledge of their respective IT teams. As a reason, IT departments are not adequately aware of how many such applications (even with similar functionalities) are being used by different individuals/teams, which increases their IT spending.
2. Missed Cancellations
The majority of employees either hesitate to consult/communicate with their IT teams or forget to inform them about the apps in use, which often leads to organizations paying more for duplicate/underused apps. SaaS subscriptions, you could renew automatically SaaS licenses, which is very easy to miss for large firms.
3. Unused SaaS Licenses
After an employee leaves the organization, it is the duty of the IT team to revoke their SaaS licenses. However, many a time, IT teams aren’t aware that the employee is using SaaS subscriptions to shadow IT apps, and as a result, payments keep getting deducted from company credit cards.
4. Off-the-shelf pricing & unoptimized licenses
The majority of SaaS apps do not leverage the pricing for companies that require more numbers. For example, say that the number of licenses per user costs $10, but for organizations with over 200 employees, it is offered at $7 per license (due to buying licenses in bulk). However, when an employee purchases a SaaS application to improve their efficiency, they often spend more, i.e. $10, due to low purchase capacity.
SaaS Spend management software helps you keep track of SaaS applications, their expenses, tail Spend, vulnerabilities, and much more. Many SaaS applications also have hidden prices that are added under maintenance and service charges which can be hard to detect for laypeople. There can also be scenarios where the addition of a single user raises the average costs for the entire team.
For example, if an application is offered at $7 per user for up to 200 users, the addition of the 201st user increases the base price for the whole team. A SaaS spend management platform detects such instances and allows you to curb such expenditures with SaaS spend optimization.
Why You Need a SaaS Spend Management Software?
To understand why SaaS Spend management is important today, and the benefits it offers, let us delve deeper into how SaaS applications are used and what problems are faced by users. Here are a few reasons why SaaS spend management software is being used in most organizations worldwide:
1. End Users Are the New Decision-Makers
Until a few years ago, IT departments used to test software tools before rolling them out. However, the IT market is rapidly becoming user-centric, and employees now have a lot more purchasing power.
Nowadays, staff, departments, or teams purchase solutions that best suit their needs. However, their choice might be different from the ones prescribed by the IT department. Thus, many similar apps with overlapping functionalities work simultaneously, increasing company expenses and slowing down processes. Hence most organizations are forced to make use of a SaaS spend management platform to mitigate needless overspending.
2. For Eliminating SaaS Wastage
Organizations can significantly reduce their SaaS budget by finding out which apps needlessly cost them. This involves checking all the applications within the organization’s inventory and deciding which SaaS applications the company should continue with.
While choosing the SaaS tools to be used (and omitting the ones not necessary), one must carefully consider which applications add value to the organization and everyone can use. To manage SaaS spend, IT teams should also ensure that there are no duplications and underutilized or abandoned applications with SaaS spend optimization.
3. For Saving Time
Finding out all the applications being used within the organization can be a cumbersome task, especially for large and distributed enterprises. Even if you are maintaining a spreadsheet, it is difficult to know whether it is up to date.
SaaS applications could be hidden in plain sight. If an employee had added one and forgotten to update it, organizations would have difficulty locating it without the right SaaS spend management platform. Yes, you can check credit card statements or have a meeting with department heads for a clearer perspective, but who has the time for that?
4. For Compliance Maintenance
In order to ensure a successful compliance audit within your organization, you would need a list of all the applications being used by employees. This obviously would be time-consuming for It teams. Even after the list is compiled, IT teams would have to Spend analyze how safe the SaaS applications are and where their vulnerabilities lie.
Often, when organizations fail/forget to cancel the access of former employees, it leads to severe data breaches. Using best SaaS spend management software, you can view all the applications being used and their compliance status within a single plag through an integrated dashboard. This allows you to audit your existing tools and mitigate security risks instantly.
5. SaaS is taking over from on-premise solutions
With the emergence of SaaS, the whole ordeal of downloading/transferring, and installing SaaS software is slowly becoming a thing of the past. More and more prominent players such as Microsoft, Oracle, and Adobe can be seen joining the SaaS bandwagon. Being cloud-only deployments, they require much less time and effort to get started with.
SaaS solutions can offer a ton of features to improve productivity and efficiency, and all you need is to sign up. Such solutions are becoming increasingly industry-specific, and anything from retail to remote work can be managed through SaaS spending monitor.
6. Underutilized Buying Power
As discussed above, when employees purchase a SaaS solution without following any centralized procurement strategy, it often leads to the organization spending more. From an employee’s perspective, the price of a single license might be very low. However, if thousands of such employees procure licenses on their own, it would cost the organization dearly.
Since organizations buy SaaS applications in bulk, they can easily get premium features at much lower costs, which leads to better saas spend management.
SaaS Spend Management Best Practices: To Reduce Business Spend
Having a SaaS spend management platform helps corporates in the following ways:
1. Keeping Track of SaaS Spend
SaaS spend management solutions help you manage SaaS spend by auditing your entire SaaS inventory. They inform you about our overall SaaS spend, help you calculate how much is being spent on each application, and who is using them.
SaaS spend management software also help you understand how efficiently your applications are being used, whether any functionalities are overlapping and if there are any vulnerabilities present. This helps you cut down on excessive spending and make better choices for your organization.
2. Improves Budgeting & Forecasting
A SaaS spend management platform allows you to eliminate surprise renewals. It alerts you days (or weeks) before your renewal date, allowing you to choose between continuing with the application or canceling your SaaS subscriptions.
A SaaS software also notifies you about how much will be spent on each application and upcoming SaaS costs. A detailed forecast of your SaaS spending helps you allocate budgets effectively and saves you money.
3. Better Discoverability & Categorization
Apart from helping you in SaaS spend optimization for your organization, SaaS management platform provides solutions that helps you categorize and discover all the applications within your ecosystem. This includes basic app information, permissions, SaaS expense management details, information about users and usage, licence and renewal details and a lot more. SaaS spend management software can detect which applicationshttps://productiv.com/blog/saas-challenges/ are redundant and rarely used. They can also find applications that interfere with your existing tools and duplicate purchases.
4. Vendor Management
Managing payments and detecting price surges in your existing plans can also be done using a SaaS spend management tool. They can also detect hidden prices and increased switching costs or plan renewal pricing from saas spend management vendors to prevent you from moving elsewhere.
Renewals and cancellations SaaS spend management goes hand-in-hand with SaaS contract management, and a big part of that is keeping up with renewal periods and cancelation clauses
5. Centralized Procurement In Accordance With Employee Needs
Organized, planned and centrally managed procurement for SaaS applications can be ensured by using a SaaS spend management platform. Such a platform helps you understand which department/team needs which applications, which helps you procure more licenses at lesser costs.
Modern SaaS spend management software can also take account of user-satisfaction rates, user-engagement and factor in employee feedback or concerns regarding your SaaS apps. And since these tools are primarily used by staff, their ideas, insights, and the challenges they face would help you make better choices.
6. Reducing Errors & Workload
Any organizations that still rely on spreadsheets to keep track of their SaaS apps. However, it requires additional effort and is prone to manual errors. Additionally, if your organization is scaling steadily, the number of SaaS applications you use would also grow.
Keeping track of all the applications being used in a large organization could be very difficult without a SaaS management software. Without them, either you or your employees would be responsible for updating the spreadsheet. Moreover, as the number of users increases, keeping track of the changing price of apps, how long each user has used them and how many employees are sharing the same license.
Maintaining a spreadsheet for SaaS spend management is a tedious and tiresome process that is highly susceptible to manual errors. Additionally, you need to constantly nag your IT executives and team members for the latest data.
Using a best SaaS spend management software allows you to track all your applications effortlessly and bring down organizational costs. In addition to managing your spending, they also keep track of all your organization’s apps. Such tools study how each app is being used within your company and how much they are costing you.
An advanced SaaS spend management platform can provide you with intelligent recommendations based on app usage and guide you towards better SaaS apps that improve your ROI. Such tools automatically capture information about the apps being used by all your business units and keep track of all changes in pricing plans, usage guidelines, and renewals.
Using a SaaS spend management tool empowers your business and helps you overcome common SaaS-related challenges like redundancy, duplicate apps, unused apps, and security threats.
Most companies are shifting to the cloud for greater convenience and higher savings in addition to reduced maintenance costs (for on-premise solutions). A SaaS spend management tool allows you to do all that and much more, which helps you better utilize your SaaS management process and sustain your business.