SaaS spend management: Best Practices to Optimize your Stack
SaaS is the best option for a replacement of software that takes up all your storage space. SaaS has become one of the primary building blocks for the business world. But, controlling SaaS spend management is a whole different story.
Your company probably spends a huge amount on SaaS each year. Well, you are not alone! Undoubtedly, there’s no end in sight for your SaaS stack.
SaaS applications are available in every size, shape, pricing model and functionality.
Cloud-based SaaS apps, infact, help overcome business challenges.Your unique business needs have specific SaaS apps whose subscriptions help businesses optimize their value. Reports suggest that the SaaS market will reach an estimated growth of 208 billion dollars by 2023!
But, how are organizations managing all the spending? This is where a SaaS spend management platform comes into the picture.
Let’s understand what is spend management and why it is essential for companies.
What is SaaS Spend Management?
Take a moment and think about your school’s class monitor. Yes, that one cranky person who was responsible for controlling and managing your entire class.
SaaS spend management is precisely that (exclude the crankiness)! It is a company’s method to monitor and control the costs of SaaS subscriptions.
ControlHippo is one such SaaS management platform that helps companies optimize their Saas budget.
Do we need SaaS spend management?
Yes, your organization can greatly benefit by investing in SaaS management solutions. By controlling how a company spends its money across various subscriptions, we can optimize the SaaS costs and uplift savings.
Why is SaaS Spend Management Important?
To understand all the hype about SaaS spending management, let’s take a look at some of its prime benefits:
To Eliminate Unnecessary SaaS Spending
Go through your inventory, and you’ll figure out various underutilized SaaS applications leeching money from your business. These apps don’t bring in any value, but employees subscribe and use them.
And, when the employees get better app options, they move forward with those without informing the IT department. With Saas spend management, you can rescue your draining SaaS budget.
To Rescue SaaS Apps from Overlapping
Do you have any idea about the apps your company uses that overlap?
Well, there are plenty! An organization has many employees, and it is common for apps to overlap. While overlapping SaaS applications are not welcome, it does happen.
But, there are times when overlapping apps are necessary to meet specific needs. However, unnecessary overlapping will create obstacles to leveraging volume for better costs.
With an effective saas spend management software, you’ll get the direction to make crucial SaaS decisions.
To Save Company’s Time During Compliance
Money matters, and so does time! Without a SaaS spend management platform, explaining the numerous unlisted and mysterious expenses during auditing becomes challenging. And what happens then?
You need to rummage through endless credit card statements and resort to managers and departmental heads. And, no one has so much time nowadays.
With SaaS spend management, you can comprehensively list all the apps your company is currently using and paying for! And, with SaaS spend managing software, companies can have a clear arrangement and information of apps, saving them enough time.
Realizing the importance of spend management, organizations find it crucial to optimize SaaS.
We are here just for that! So let’s take the plunge and learn the best ways for SaaS spend optimization.
The Best SaaS Spend Management Practices
Furbish your SaaS Policies
Your company does have a SaaS buying and usage policy, right?
If yes, it’s high time to align it with your organization’s goals. Make sure your policies communicate all your required expectations and requirements.
Review your policies keeping the following points in mind:
- Who can purchase SaaS?
- Does the policy have appropriate approval workflows for different tiers of SaaS spending?
- Does buying SaaS require IT involvement and procurement?
- What are the approved methods to purchase new SaaS and recurring SaaS payments?
- What are the responsibilities of the end-user department regarding the usage and tracking of SaaS?
Ensure to create a SaaS internal policy that addresses all responsibilities and expectations of using and purchasing SaaS. Do get it signed by the end-user department.
Standardize SaaS Inventory
Do you know what successful SaaS spend management optimization looks like?
An organized and up-to-date inventory.
Whether you use a spreadsheet or a software subscription, keeping an up-to-date inventory for all the SaaS your company pays is a must.
Even if your organization’s buying functions are decentralized, each team needs to keep inventories that buy and use SaaS tools.
But, if every team creates inventory according to their whims, it’ll be a hassle.
So, it’s essential to avoid multiple inventory formats and create a standard one. It’ll ease SaaS spend management and help teams track their SaaS.
Conduct SaaS Reviews
With time, technology is prone to change. So, why will SaaS be left behind? SaaS needs have been changing rapidly over the past couple of years.
From the volume of licenses to the types of solutions needed, SaaS has undergone various changes. You never know what’ll come next. So, it’s crucial to do a periodic review of your SaaS spending and inventory.
Ensure to do a top-notch quarterly review of the company’s SaaS stack to identify waste areas and look for areas of improvement.
Use SaaS Spend Management Software
Yes, there are apps for that! Companies can control and even monitor their SaaS spending.
Spreadsheets are a good option for a start, but with a SaaS spend management tool, you can eliminate the need for manual tracking. It takes your management of SaaS subscriptions to the next level.
With seamless automation, SaaS spend management also puts real-time spend oversight and control back into the hands of the department that needs it the most. Finance and IT leaders are two prominent examples.
SaaS came, and SaaS conquered! SaaS spend management has turned the tables for traditional spend management.
Our primary aim while purchasing a new SaaS tool is for efficient cost improvement. But, with a large stack and absence of SaaS spending management, your organization’s expenses become way higher without you realizing.
So, implementing a SaaS spend management solution can get your organization back on the right track. There are numerous SaaS spend management platforms available. You can choose a SaaS platform that adheres to your business goals. Get a SaaS spend management solution and maximize your SaaS investment’s potential today.