Mastering SaaS Compliance: Aligning with ISO 19770-8 Standards

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The usage of SaaS has reached new heights and continues to grow. With the demand for these easy-to-use and flexible tools, awareness of compliance scenarios is becoming increasingly important. One such key compliance standard a CISO should know is ISO 19770-8. This standard helps manage software assets in a SaaS environment.

Knowing these requirements is crucial for managing risks, improving efficiency, and protecting the organization’s reputation. Aligning with these standards can lead to better governance, reduced costs, and enhanced accountability.

Read this article to explore how your organization can master SaaS compliance by aligning its practices with ISO 19770-8.

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TL;DR

• Aligning with ISO 19770-8 ensures proper license management, helping organizations avoid legal risks and non-compliance penalties.
• Identifying and addressing underutilized or redundant software licenses reduces waste and optimizes resource allocation for cost savings.
• Implementing robust access control protocols minimizes security vulnerabilities and ensures only authorized personnel have the right access.
• Maintaining transparency across the software stack enables better decision-making, aligning IT resources with business goals.
• Using CloudEagle.ai simplifies license tracking, access management, and audit processes, ensuring continuous compliance with minimal effort.

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What is ISO 19770-8?

ISO 19770-8 is part of the ISO 19770 series, which focuses on software asset management (SAM). It provides guidelines for managing software assets in a cloud environment, covering important areas like portfolio management, license compliance, and risk assessment.

The standard emphasizes the need for organizations to have structured processes for tracking, managing, and optimizing their software assets. This ensures compliance with licensing agreements and helps maintain security and efficiency.

Why ISO 19770-8 is crucial for IT asset management?

Traditional asset management approaches may fall short in the SaaS industry, where software is accessed remotely and often on a subscription basis. ISO 19770-8 provides a necessary framework to address these gaps.

Here are a few reasons why these standards are crucial:

• Compliance assurance: With various licensing models available in the SaaS market, organizations must ensure they comply with licensing agreements to avoid legal and financial penalties. ISO 19770-8 helps establish processes to track and manage software licenses effectively.
• Cost optimization: The standard enables organizations to identify underutilized or redundant applications by providing guidelines for monitoring software usage. This insight allows for more informed purchasing decisions and can lead to significant cost savings.
• Risk management: The SaaS environment introduces unique data security and compliance risks. ISO 19770-8 aids in identifying these risks and implementing mitigation strategies, thus enhancing overall IT governance.
• Enhanced visibility: The standard promotes transparency in software asset management, ensuring organizations have a clear view of their software stack. This visibility is essential for making strategic decisions and aligning IT resources with business goals.
• Continuous improvement: ISO 19770-8 encourages organizations to regularly assess and improve their software asset management practices. This commitment to ongoing enhancement helps organizations stay competitive and responsive to changing needs.

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What is the role of ISO/IEC 19770-8?

ISO/IEC 19770-8 is pivotal in guiding organizations toward effective software asset management (SAM) in a cloud environment. Establishing a standardized framework helps businesses navigate the complexities of managing software assets while maximizing their value. Here are the key roles of ISO/IEC 19770-8:

1. Ensuring efficient management of software assets

One of the primary functions of ISO/IEC 19770-8 is to provide a structured approach to managing software assets. The standard outlines best practices for tracking software usage, monitoring licenses, and ensuring software is deployed efficiently across the organization. This systematic management helps organizations optimize their software resources, reducing waste and improving operational efficiency.

2. Enhancing transparency in software usage and licensing

Transparency is vital in software asset management, and ISO/IEC 19770-8 enhances visibility into software usage and licensing. By following its guidelines, organizations can maintain accurate records, ensure compliance, and make informed decisions about software investments.

Follow the mentioned best practices aligned with ISO/IEC 19770-8.

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3. Reducing compliance risks and optimizing software costs

Compliance risks are a significant concern for organizations using SaaS solutions, as failure to adhere to licensing agreements can result in legal issues and financial penalties. ISO/IEC 19770-8 helps mitigate these risks by providing a framework for regular audits and compliance checks.

Additionally, by promoting effective tracking and management of software assets, the standard enables organizations to identify underutilized licenses and redundant applications, ultimately leading to optimized software costs and better resource allocation.

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A step-by-step guide to aligning with ISO 19770-8 using SaaS management

Aligning with ISO 19770-8 standards requires a systematic approach to managing software assets in the SaaS environment. Here’s a step-by-step guide to help organizations achieve compliance effectively:

Step 1: Conduct a SaaS portfolio audit

Begin by conducting a comprehensive audit of all SaaS applications in use within your organization. This involves identifying every application, understanding its purpose, and documenting key details such as vendor information, licensing terms, and user counts.

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Keeping an accurate portfolio of your software gives you a clear view of what you have, which is important for good management and compliance. This process helps you find unused or rarely used applications, letting you optimize resources and save money.

Knowing your software assets also ensures compliance with licensing agreements and avoids legal issues. Regular audits should be part of your software management strategy to keep up with changing business needs and technology trends.

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With CloudEagle.ai, teams can quickly gain visibility into their SaaS portfolio in 30 minutes. This tool helps identify all applications—whether approved or not—and tackles shadow IT while providing insights into department-level costs and app usage.

Users can easily check every app in their organization, streamline their SaaS stack by spotting unused or redundant software, and enhance efficiency while cutting costs. Plus, it keeps everyone informed with alerts for unauthorized purchases, helping to mitigate risks from shadow IT before they become a bigger issue.

Discover how Rec Room gained complete visibility on the free apps used by its teams. Read the detailed success story here.

Step 2: Implement license and entitlement tracking

Once you have a complete inventory, the next step is to set up a system to track licenses for each SaaS application. This means keeping track of how many licenses you’ve bought compared to how many are being used.

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Tracking licenses is important for several reasons. First, it ensures compliance with vendor agreements, helping you avoid legal issues. Second, knowing how many licenses are in use lets you spot overspending on unnecessary licenses, which helps you save money.

A good license tracking system also helps you plan for the future. As your organization grows, you’ll be ready to make smart decisions about renewing or adding licenses. Regularly checking your license usage aligns you with your goals and ensures you get the best value from your software.

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With CloudEagle.ai, users can centralize all their licenses on a single dashboard for complete control and real-time visibility into purchased, provisioned, and utilized licenses. The platform leverages AI to extract contract metadata, making tracking licenses at both the vendor and application levels easy.

Integrating with over 500 applications, CloudEagle.ai monitors logins and feature-level usage, allowing you to allocate the right number of licenses and gain deeper insights into their utilization. If direct integration isn't available, you can upload your license files, and the AI will organize all your data without needing spreadsheets.

If you want to learn how Remediant Tracked App Usage, Licenses, and Spend Data Effortlessly Using CloudEagle.ai, read this case study.

Step 3: Monitor SaaS usage and optimize licenses

Monitor the usage patterns of your SaaS applications regularly to identify underutilized or redundant software. Use analytics tools to assess how frequently applications are accessed and by whom. This information can guide decisions about license optimization, allowing you to adjust or consolidate licenses based on actual usage, ultimately leading to cost savings.

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CloudEagle.ai helps users optimize resources by automatically reclaiming unused licenses. It can remove, reclaim, or downgrade licenses based on actual usage, ensuring you only pay for what you need. Users can set up workflows to trigger license harvesting based on usage patterns or offboarding dates, streamlining management.

With accurate usage data, teams can make informed decisions and achieve significant savings. The platform also provides feature-level insights to identify underutilized features in higher-tier licenses, with alerts for potential downgrades to optimize costs for each user.

Step 4: Establish access control and risk management protocols

Implement access control measures to ensure authorized personnel can access specific applications and data. This includes defining user roles and permissions based on the principle of least privilege.

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Risk management protocols should also be established to identify potential security vulnerabilities associated with SaaS applications. Regular assessments can help mitigate risks related to data breaches and compliance violations.

CloudEagle.ai simplifies monitoring app access and compliance reviews. Users can quickly generate reports without logging into each app, with detailed logs showing who has access. It ensures that only authorized personnel have privileges, minimizing security risks.

Automating access reviews for audits like SOC 2 and ISO 27001 makes it easy to verify access and provide proof of de-provisioning—all from a single dashboard, saving time and ensuring compliance.

Step 5: Regularly review and update compliance strategies

Compliance is an ongoing process. Schedule regular reviews of your compliance strategies to ensure they remain aligned with ISO 19770-8 standards and adapt to any software environment or business operations changes.

Stay informed about standard and industry best practices updates and make necessary adjustments to your policies and procedures. Regular staff training on compliance issues helps maintain a culture of awareness and accountability.

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CloudEagle.ai makes managing, auditing, and securing app access effortless. You can control app access from a single dashboard to ensure compliance and security. Create a user-friendly application catalog for employees to view and request access, with app admins assigned to streamline the process.

CloudEagle.ai simplifies tracking access for compliance audits by allowing you to export logs directly from the portal, making audits efficient. With zero-touch onboarding and offboarding, you can automate access assignment or revocation as users join or leave, enhancing security.

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Benefits of Aligning with ISO 19770-8 for SaaS Providers

Aligning with ISO 19770-8 standards offers numerous advantages for SaaS providers. Here are the key benefits:

Enhanced customer trust and credibility: Adopting ISO 19770-8 standards shows a solid commitment to industry best practices. This transparency builds customer confidence and trust in your SaaS offerings, demonstrating that you prioritize compliance and effective software management.

Improved license management and compliance: ISO 19770-8 provides a framework for streamlined tracking of SaaS licenses and usage. By implementing these standards, organizations can effectively manage their software assets, reducing the risk of non-compliance with licensing agreements. This proactive approach mitigates potential legal issues and enhances operational efficiency.

Optimization of software costs: The standard aids in identifying underutilized licenses and SaaS subscriptions, allowing organizations to make informed decisions about resource allocation. Companies can achieve significant cost savings by reallocating or canceling unused resources optimizing their overall software expenditures.

If you want to learn insightful cost-saving tips from finance leaders, read what Sophie Wang, head of WeFunder, shared.

Data-driven product enhancements: Aligning with ISO 19770-8 allows SaaS providers to gain insights from software usage trends. This data-driven approach guides product development, ensuring new features and enhancements meet customer needs and preferences. As a result, organizations can create more relevant and valuable offerings, leading to increased user satisfaction.

Facilitated audits and reporting: Maintaining comprehensive records and documentation in accordance with ISO 19770-8 simplifies the audit process. This proactive documentation reduces the time and costs associated with compliance checks, making it easier to demonstrate adherence to standards during audits. Streamlined reporting also helps maintain organizational transparency.

Competitive edge in the SaaS market: By positioning your SaaS offering as a compliant, reliable, and secure solution, you can attract more enterprise clients. Demonstrating alignment with ISO 19770-8 can set your organization apart from competitors. It showcases your commitment to quality and security in software asset management.

Better vendor relationship management: Having detailed data on license usage and renewal needs strengthens negotiations with software vendors. This insight supports more strategic procurement decisions, enabling organizations to secure better contract terms and cost savings. A solid understanding of software assets allows for more effective vendor discussions, enhancing overall relationship management.

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Conclusion

To optimize your organization’s software asset management, align with ISO 19770-8 standards for SaaS compliance. This will enhance customer trust, improve license management, and reduce compliance risks.

Alignment fosters accountability, promotes cost savings, and supports data-driven decision-making. As SaaS usage grows, effective management of software assets becomes a strategic advantage. Organizations that prioritize compliance will be better positioned to navigate future challenges.

Investing in ISO 19770-8 alignment protects your organization and paves the way for sustainable growth and innovation in the SaaS industry. In this context, consider a tool like CloudEagle.ai enriched with strong SaaS asset management capabilities.

If you need help maintaining SaaS compliance and strengthening your organization's access control mechanisms, consider scheduling a demo with CloudEagle.ai.

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