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Enter Your Optimization Era: Reducing SaaS License Waste in the Enterprise

reducing SaaS license waste


SaaS license management is crucial for enhancing efficiency, reducing costs, and improving overall operations. In today’s business landscape, where SaaS applications are prevalent, managing these licenses effectively is essential to reduce and prevent waste.

license waste

Did you know that, on average, 51% of SaaS licenses go unused monthly? This inefficiency can lead to significant financial losses – up to $18 million annually, as reported by the 2024 SaaS Management Index

Imagine the potential for cost savings and the impact it could have on your organization’s bottom line. This staggering figure underscores the urgent need for a structured approach to SaaS license management.

Don’t let license waste create bad blood with your budget. It’s time to adopt proven strategies to reduce waste and maximize software investment. 

At Modernizing Medicine (ModMed), VP of IT and Digital Business Trenton Cycholl is spearheading efforts to streamline their tech stack, reduce costs, create a positive employee experience, and achieve operational excellence. At our recent SaaSMe conference session, Your Optimization Era: Reducing License Waste in the Enterprise, Cycholl shared what his team has done to reduce SaaS license waste.

Watch it on-demand here. Or, read on to learn how to analyze software usage, pinpoint inefficiencies, and eliminate waste. Rewrite the license management story — this is your blank space for a more cost-effective future.

Why Programmatic Management Is Vital for Reducing SaaS License Waste

Efficient SaaS license management is not just about reducing costs – it’s about maintaining operational efficiency and avoiding unnecessary expenses. Without proper and programmatic management, licenses can quickly become a source of waste. 

That’s why operationalizing license management is so important. When we say “operationalizing,” we mean using processes and automation to scale license management and optimization. This includes:

  • Reclaiming and reissuing unused licenses
  • Reducing license count at renewal  
  • Maintaining an accurate software inventory 

At ModMed, the goals for operationalizing software license management were clear. They aimed to simplify their technology landscape, improve operational efficiencies, and deliver a better employee experience. 

“Reducing licensing waste is not just about saving costs,” shared Cycholl. “It’s about improving our operational efficiencies, simplifying our technology landscape, and ultimately delivering an amazing employee experience.”

According to Cycholl, the key to their success was centralizing data. “Centralizing key data is an absolute step zero. And Zylo was a quick and simple way to accomplish this,” he explained. 

Organizations can maximize their utility and minimize waste by efficiently tracking and managing licenses with centralized data, just like ModMed did with Zylo’s solution. After all, you can’t manage what you can’t see.

Four Steps to Reduce SaaS License Waste

ModMed took a structured approach to reduce license waste, focusing on several key steps:

1. Identify the Opportunity

License Insights Product Screen Shot

The first step involved utilizing usage insights from various data sources to pinpoint underutilized licenses and upcoming renewals. This process provided visibility into their entire SaaS ecosystem, enabling them to identify where resources were being wasted, where optimization opportunities existed, and how to prioritize next steps. 

“Visibility to all our SaaS needs in one tool has been absolutely awesome. Once the data is centralized and maintained, our optimization journey involved identifying where we can make some impactful changes,” said Cycholl.

2. Scale Optimization Using Workflows

The next crucial step was to set up workflows for license reclamation efforts. These workflows ensured that SaaS licenses were reclaimed systematically, preventing waste and optimizing resource usage. A structured approach allowed ModMed to scale its optimization efforts across the organization.

3. Convert License Optimization to Cost Savings

Once they identified opportunities and established workflows, the next step was to convert these optimizations into tangible cost savings. By using Zylo’s tracking and reporting tools, ModMed could monitor usage patterns, rightsize licenses, track renewals, and measure the impact of their efforts. This data-driven approach enabled them to make informed decisions and prioritize actions that yielded the highest returns.

Savings Center Identified Savings

4. Report on Wins

Regular reporting on the outcomes of their license optimization efforts was essential for maintaining momentum and demonstrating success. By tracking and reporting on key metrics, ModMed held teams accountable and showcased the impact of their efforts. This transparency helped build support for ongoing optimization initiatives and ensured that the entire organization remained aligned with its goals.

Using Zylo, ModMed has achieved these results to-date:

  • 65 applications canceled
  • 3,359 licenses reclaimed
  • 57 workflows executed (~8 per month)
  • 156 applications managed through SSO
  • Identified four tools and licenses with ~$160,000 cost savings for upcoming quarter

Enter Your Optimization Era & Reduce SaaS License Waste

ModMed’s results demonstrate the power of a well-executed SaaS Management strategy. By focusing on centralizing data, identifying opportunities, and implementing effective workflows, ModMed was able to significantly reduce license waste and achieve substantial cost savings.

“Don’t just look at it as a cost-cutting effort. You really set a foundation for more awesome employee experiences, efficient operations, and driving a lot more investment into innovation and innovative use of technology,” emphasized Cycholl.

Are you ready to enter your optimization era? With the average company wasting $18M annually on unused licenses, now is the time to get started with SaaS Management.

Zylo’s SaaS License Management solution can help IT leaders reduce license waste, increase efficiency, and save money. Tour the platform for free here, or request a demo today and take the first step toward a more efficient and cost-effective SaaS environment for your organization.