![Data storytelling for SaaS Management](https://zylo.com/wp-content/uploads/2024/09/data-storytelling.png)
Use This Data Storytelling Framework to Gain Executive Support for SaaS Management
Table of Contents ToggleData Storytelling Framework for SaaS ManagementWhat story is...
Back
Back
Search for Keywords...
Blog
Table of Contents
With software-as-a-service (SaaS) now a nearly $200-billion industry, savvy organizations proactively implement SaaS management best practices to identify and eliminate duplicate subscriptions, mitigate security risks, and most importantly—control software costs.
Think of SaaS spend management as a sub-discipline of SaaS management overall, one that’s concerned with identifying costs, increasing savings where possible, and maximizing value for your SaaS applications.
If you’re looking to take control of your SaaS spend and potentially save significant cash, consider the following strategies to optimize SaaS spend management.
Begin the SaaS spend optimization process by discovering your complete SaaS inventory. While there are multiple avenues to identify SaaS applications, Zylo recommends financial discovery, as it offers a clear path to “follow the money.”
Robust SaaS management platforms, such as Zylo, integrate directly into spend management platforms and enterprise resource planning (ERP) and expense software like Netsuite, SAP Concur, Expensify, and more. With Zylo’s Discovery Engine, you can also import flat-file spreadsheets to identify SaaS spending.
Pro Tip: Make sure to examine both your direct supplier spend (accounts payable) and expense spending (company cards, procurement cards, and expense reimbursements).
Because SaaS tools are typically inexpensive and easy to acquire, individual employees or teams often purchase SaaS—unbeknownst to centralized IT teams. In fact, Zylo’s SaaS Management Index report found that nearly one in ten (7%) employees now expense SaaS applications. While expense spending accounts for a tiny sliver of overall SaaS spending (just 3%), it generates more than half of all SaaS application inventory.
Focus on the applications and tools that make up the largest amount of your overall SaaS spend. These applications offer the best chance for significant financial savings. Examine whether the applications are part of a centrally managed plan, or expensed by an individual employee or team.
Guide to Managing SaaS Costs
Learn MoreAfter determining your most expensive SaaS tools, look for rightsizing opportunities. Put simply, rightsizing involves matching up licenses and features with the most appropriate number of employees.
In a typical month, about 51% of SaaS licenses go unused, which creates a huge amount of wasted spend. It’s also a key indicator for rightsizing opportunities.
Consider the following questions for rightsizing SaaS tools:
While many organizations utilize multiple types of applications that fulfill the same primary function—your marketing and software development teams probably need very different project management applications—too many redundant applications cause excessive costs. For example, one Zylo customer discovered 48 different project management applications.
Group your redundant applications and analyze utilization data. Also, make sure to gather team and user feedback to help determine which applications offer the highest utility.
You’ll likely find opportunities to standardize on a smaller set of SaaS applications. It’s also a prime opportunity to eliminate any non-approved applications. Just ensure you communicate the changes to all employees who use the impacted software.
Just as teams purchase redundant applications, multiple employees and teams often purchase duplicate subscriptions to the same application. And sometimes employees purchase applications that the business already pays for and centrally manages.
Duplicate SaaS subscriptions increase costs because the per-user price for a single subscription purchase on the open market usually runs significantly higher than what a business or organization can negotiate with its increased buying power.
If you identify duplicate licenses, use the opportunity to consolidate or eliminate them entirely.
Pro Tip: Some SaaS applications require contractual agreements, so you may need to wait for the renewal period before making changes.
Also be aware of auto renewals. Without proactive SaaS management, organizations often miss the opportunity to negotiate a lower price or better features. Consider using Zylo’s SaaS Renewal Calendar to keep tabs on all software subscriptions and never overpay for an unnecessary auto renewal.
Ready to discover and optimize your organization’s SaaS spend? Get started by requesting a demo of Zylo today.
Table of Contents ToggleData Storytelling Framework for SaaS ManagementWhat story is...
Table of Contents ToggleWhat Is a Saved Filter?Use Cases for Saved...
Table of Contents ToggleHow to Optimize SaaS Spend Management1. Identify All...
Table of Contents ToggleHow to Optimize SaaS Spend Management1. Identify All...
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |