As we discussed in our last post, the role of IT Procurement is no longer a functional job whose role entails sending out lengthy RFPs paired with the never-ending chore of reviewing the responses before enforcing a decision. Over the past decade, the role is shifting slowly but surely to become one of the most strategic in the organization. The change has largely been driven by SaaS and other cloud-based delivery models, which no longer require the same arduous process that used to take all of IT Procurement’s time.
While SaaS certainly isn’t a new concept, it’s only recently that IT Procurement teams across all industries and sizes have faced major challenges they must overcome. Coincidentally, the challenges can actually become major benefits with the right visibility, creating simplified departmental buying, empowered Shadow IT, and seamless one-click subscriptions. The key, however, is a non-negotiable: IT Procurement teams must have visibility into all aspects of the Cloud in order to keep their organization running smoothly; even excelling into this new era.
The Opportunity to Gain Visibility
The phrase “knowledge is power” relates well to IT Procurement’s shift. Without data, it’s impossible to make informed, let alone strategic decisions to guide the organization. But with visibility into aspects like how much is spent on SaaS across the organization—regardless of source, how the applications are being utilized (or not utilized), and how employees feel about the SaaS products, IT Procurement becomes empowered. Armed with data and visibility, the role can work out enterprise or group discounts, or better yet, roll various ad hoc subscriptions into a single master agreement to ensure no dollars are left on the table.
In the past, IT Procurement had to play the role of “bad cop” and teams avoided going through the processes due to the red tape, drawn out RFPs, and so on. Today, however, IT Procurement teams can lay the proper groundwork at each level of the organization and allow each department or individual purchase the software that makes the most sense on their own terms and budget, while also giving visibility back to IT Procurement. IT Procurement now has the opportunity to initiate the conversation and inform departments and business units about innovation happening across the enterprise—something that simply couldn’t be achieved without a single source to manage cloud subscriptions.
The End Goal For IT Procurement
In order to succeed in this new cloud-driven era, IT Procurement needs a way to fully understand an organization’s spend, utilization, and employee sentiment as it relates to SaaS subscriptions. Simply put, the end goal of IT Procurement is to understand all of IT, including SaaS, cloud-based software, and subscription software. Visibility and cost optimization are top of mind for IT Procurement leaders. Can your organization relate?
Drive IT Procurement Strategy
For the first time ever, it’s possible for IT Procurement to obtain 100% of licensing data and have visibility in order to put a strategy around it. At Zylo, we believe Cloud licensing can make IT Procurement strategic. Interested in learning more? Download our latest ebook entitled, “How the Cloud Shift Can Drive IT Procurement Strategy”.