Why ITAM and SAM Professionals Must Embrace SaaS Management Next

‍

IT asset management (ITAM) and software asset management (SAM) professionals traditionally manage on-premise software and hardware.

However, the rapid adoption of SaaS has disrupted these practices. As your organization increasingly relies on cloud-based solutions, you must adapt how you manage them.

It is no longer optional to embrace SaaS management; it is crucial if you want to maintain control, optimize costs, and ensure compliance in today's dynamic IT sector.

‍

TL;DR

• Managing SaaS with traditional IT tools is challenging due to limited visibility, lack of automation, and difficulty tracking dynamic SaaS usage and licensing models.
• SaaS adoption requires agility to handle rapid technology changes, decentralized purchasing, evolving compliance needs, and fluctuating subscription costs.
• IT leaders must expand their skills to optimize licenses, monitor usage, and ensure compliance in a SaaS-driven environment.
• CloudEagle.ai automates app discovery, license tracking, renewals, and procurement, providing AI-powered insights for cost savings and vendor negotiation.
• Effective SaaS management enhances visibility, reduces shadow IT, optimizes licenses, streamlines workflows, and controls costs to align software use with business goals.

‍

The Limitations of Traditional ITAM and SAM in a SaaS-Dominated World

You've likely built your ITAM and SAM practices around managing physical hardware and perpetual software licenses.

This method worked well when most software resided on local servers or individual computers. Your focus was on tracking installation counts, managing license keys, and making sure you comply with fixed-term agreements.

Furthermore, you could easily monitor and control software access within your organization's network perimeter. But all these are harder when it comes to SaaS applications.

1. Challenges of Managing SaaS With ITAM Tools

With traditional ITAM tools, you will struggle to effectively manage SaaS applications due to several challenges:

• Lack of visibility: Your existing tools may not detect cloud-based applications, leaving you blind to a significant portion of your software assets.
• Limited usage data: ITAM tools often cannot provide the deeper, feature-level usage data crucial for SaaS optimization. Without this, you can't effectively right-size licenses or identify underutilized subscriptions.
• Lack of automation: Traditional ITAM tools lack the necessary automation capabilities to manage the dynamic nature of SaaS applications. Without automated workflows for tasks like provisioning, de-provisioning, and renewals, it becomes virtually impossible to manage your SaaS portfolio at scale efficiently.
• Dynamic licensing models: SaaS often uses consumption-based or per-user pricing, which traditional ITAM tools aren't designed to track.
• Rapid changes in usage: SaaS subscriptions can change frequently, making it difficult for static ITAM tools to keep up.
• Integration issues: Many ITAM tools can't integrate with SaaS platforms to automatically pull usage and licensing data.
• Shadow IT detection: Identifying unauthorized SaaS usage becomes more complex without proper discovery tools.
• Cost allocation: Attributing SaaS costs to specific departments or projects is challenging with traditional ITAM tools.

To manage your organization's growing SaaS portfolio effectively, you must adopt new strategies and tools designed explicitly for SaaS asset management.

With this shift, you will be able to maintain control, optimize costs, and ensure compliance in the SaaS-dominated sector.

2. The Importance of Adaptability in It Asset Management

The SaaS sector is fast-paced, and you have to evolve your IT asset management approach. Adaptability is crucial because:

• Technology shifts rapidly: New SaaS solutions are coming out often and that requires flexible management strategies.
• Business needs change quickly: Your organization must swiftly adopt or discontinue SaaS tools to remain competitive.
• Compliance requirements evolve: Data privacy and security regulations in SaaS continue to develop.
• Cost optimization demands agility: You need to quickly identify and eliminate wasteful SaaS spending.

If you are adaptable, you will position your ITAM and SAM practices to effectively manage your organization's SaaS stack to ensure both efficiency and compliance in the SaaS-dominated business sector.

‍

The Rise of SaaS and Its Impact on IT Asset Management

SaaS has changed the software industry, transforming how organizations acquire and use applications. Radix says 70% of CIOs prefer SaaS since it is scalable and agile.

‍

‍

The average number of SaaS apps by the size of companies. Source: Radix.

The SaaS sector is projected to reach $716.52 billion by 2028, at a CAGR of 27.5% from 2021. Additionally, 70% of software used by organizations is SaaS-based.

With these statistics, you can see the shift towards cloud-based solutions in the corporate sector.

1. The Proliferation of SaaS Applications in Organizations

Your organization likely uses numerous SaaS applications across various departments. This rapid adoption stems from the ease of implementation, reduced upfront costs, and the ability to scale quickly.

SaaS tools now power everything from customer relationship management to human resources and project management.

As a result, you're managing a complex stack of cloud-based applications, each with its own licensing model, usage metrics, and security considerations.

This proliferation impacts IT asset management by exponentially increasing the number of assets to track, complicating license management, and introducing new security risks that need constant monitoring and mitigation.

2. The Decentralization of Software Purchasing and Management

SaaS has drastically changed how software is purchased and managed within your organization.

Unlike traditional software procurement, which typically goes through IT departments, with SaaS, individual teams or even employees can directly subscribe to services.

This decentralization has led to faster adoption of new tools but also created challenges in oversight and cost control.

You may find that different departments use overlapping tools or that subscriptions go unused, resulting in unnecessary expenses.

For ITAM, this creates big challenges in maintaining an accurate inventory of software assets, controlling costs, ensuring compliance, and managing security risks across a now-distributed procurement sector.

‍

Why SaaS Management is the Next Logical Step for ITAM and SAM Professionals

As an ITAM or SAM professional, you have to expand your focus to include SaaS management. This evolution is beneficial and essential for controlling your organization's software portfolio.

SaaS management builds on your existing skills while addressing the unique challenges of cloud-based applications.

1. SaaS Management as an Extension of ITAM and SAM Responsibilities

SaaS management extends your current responsibilities by adding crucial oversight of cloud-based assets.

You'll apply your expertise in license compliance, cost optimization, and asset lifecycle management to a new domain. You'll develop new skills in areas like subscription management and cloud security.

This expansion of your role ensures that you remain a vital part of your organization's IT strategy.

2. The Need for Continuous Monitoring and Optimization of SaaS Investments

SaaS requires continuous monitoring and optimization due to its dynamic nature. Unlike traditional software, SaaS usage and costs can fluctuate rapidly.

You need to constantly track user adoption, identify underutilized subscriptions, and proactively manage renewals. Now, that is where SaaS management tools like CloudEagle.ai come in.

‍

‍

CloudEagle.ai helps IT, procurement, and security teams manage, govern, and renew all SaaS apps from a single platform. So you will not have to do the work as CloudEagle.ai will do the heavy lifting for you while you can save time and focus on strategic tasks.

Implementing a SaaS tool for ongoing optimization will help you significantly reduce waste and maximize the value of your organization's software investments.

Since it continuously monitors your stack, this will help you maintain security and compliance in an environment where data is stored off-premise and accessed from various devices and locations.

3. Benefits of Integrating SaaS Management Into Existing ITAM/SAM Frameworks

Integrating SaaS management into your ITAM/SAM practices brings many benefits.

1. Provide complete visibility on SaaS

SaaS management tools like CloudEagle.ai significantly enhance visibility into your organization's SaaS stack.

With over 500 integrations, CloudEagle.ai automatically discovers all apps in your company within 30 minutes of onboarding. This rapid discovery process eliminates the need for time-consuming manual tracking via spreadsheets.

CloudEagle.ai goes beyond simple app discovery. It provides detailed insights into both managed and unmanaged apps, including feature-level usage data.

For instance, you can see specifics like the number of recorded Zoom meetings or opportunities created in Salesforce. With this visibility, you will make informed decisions about your SaaS investments.

‍

‍

CloudEagle.ai helps prevent shadow IT by sending automated alerts for risky or duplicate apps. It also uses AI to extract and organize contract metadata, centralizing all your SaaS contracts in one place.

With this complete visibility, you will be able to accurately track licenses, improve ROI, and gain a clear understanding of department-level spending for each application.

2. Get Detailed Usage Data To Realize Savings

Detailed SaaS usage data is crucial for identifying cost-saving opportunities.

CloudEagle.ai offers feature-level usage data for each application, going beyond simple login metrics. With this information, you can assess the actual value of each subscription.

For instance, you can see how many employees actively use specific features in Salesforce or how often video conferencing tools are utilized.

The platform's AI-driven analysis helps you identify underutilized licenses, allowing you to downgrade or eliminate unnecessary subscriptions.

It also highlights duplicate apps with overlapping functionalities, enabling you to consolidate your SaaS stack and reduce redundant spending.

‍

‍

CloudEagle.ai's license harvesting feature helps automate the process of reclaiming unused licenses, leading to significant recurring savings. You can set up customized workflows based on specific triggers, such as usage thresholds or offboarding dates.

The platform's extensive integration network ensures you receive the most accurate usage data, guaranteeing substantial savings.

‍

‍

Additionally, CloudEagle.ai provides license downgrade alerts by analyzing feature-level usage. It identifies users with low usage of higher-tier features and suggests appropriate downgrades.

With this approach, you will be able to continually optimize your license allocation to ensure you only pay for what you truly need.

3. Identify Redundancies and Rationalize Your Stack

Identifying redundant applications and rationalizing your SaaS stack is crucial for cost optimization and operational efficiency.

CloudEagle.ai automates this process to help you effectively streamline your SaaS portfolio.

CloudEagle.ai's comprehensive discovery process reveals your entire SaaS portfolio, including shadow IT. It then categorizes these applications so you can easily differentiate between tools used for various purposes, such as marketing or product development.

‍

‍

This categorization helps you quickly spot overlapping functionalities across different departments.

To effectively rationalize your SaaS stack, follow these practices:

• Gain complete visibility: Use a centralized app management approach to get a comprehensive view of your entire SaaS portfolio.
• Leverage SaaS management platforms: Use tools like CloudEagle.ai to automatically identify redundancies and free apps through integrations with your internal systems.
• Optimize based on usage data: Analyze detailed usage metrics to prioritize essential apps and eliminate underutilized ones.
• Collaborate across departments: Work closely with finance and procurement teams to align app rationalization with business goals and financial objectives.

Implementing these practices will streamline your SaaS portfolio, reduce unnecessary spending, and ensure your organization uses the most effective tools.

Remember, regular reviews and optimization will keep your stack lean and aligned with your evolving business needs.

4. Automate Complex Processes for IT, Security, and Procurement Teams

SaaS management tools help streamline operations for your IT, security, and procurement teams through extensive automation. With this automation, you will save time, reduce errors, and improve overall efficiency.

CloudEagle.ai's AI-driven system recommends appropriate apps based on an employee's department and role. This helps eliminate the need to wait for access requests and allows you to grant immediate access to necessary tools.

It integrates with identity management systems like Okta, enabling you to add users to specific groups for streamlined access management.

‍

‍

The platform's AI capabilities extend to contract management. It automatically extracts crucial metadata from contracts, including renewal dates, billing frequency, payment terms, and auto-renewal clauses.

This information is then centralized on a single dashboard to provide you with a comprehensive view of your SaaS spend and contractual obligations.

CloudEagle.ai also revolutionizes the procurement process. It offers assisted buying services that cover all aspects of procurement, from price negotiations to deal closure. This service can save you significant time and potentially secure better pricing.

‍

‍

You can create custom, no-code workflows for various processes, such as purchase requests, employee onboarding, or contract signatures.

These workflows automatically route requests to the right stakeholders, enhancing visibility and accelerating the approval process. This automation helps speed up operations and provides real-time tracking of request progress.

5. Efficient License, Contract and Renewal Management

Efficient license, contract, and renewal management are crucial for controlling SaaS costs and maintaining compliance. CloudEagle.ai streamlines these processes, offering a comprehensive solution for managing your SaaS stack.

‍

‍

CloudEagle.ai provides deep, feature-level insights into license usage through direct integrations and Excel uploads.

With this detailed data, you will effectively manage license types, track assigned and active users, monitor login frequency, and analyze spending for each license from a single dashboard.

The platform's AI automatically extracts and organizes contract metadata, eliminating the need for manual spreadsheet management.

Even without direct integration, you can easily upload license files, and CloudEagle.ai will consolidate all purchased and provisioned licenses along with spending data in one location.

‍

‍

To prevent last-minute renewal scrambles, CloudEagle.ai initiates automated renewal workflows up to 90 days in advance. It assigns these to the appropriate stakeholders and sends timely reminders via Slack and email.

CloudEagle.ai integrates with popular contract repositories like DocuSign, Workday, and Google Drive. This integration allows you to import contracts from various sources while the AI engine organizes and extracts metadata, providing a unified view of all contract data.

‍

‍

CloudEagle.ai also facilitates seamless collaboration through Slack integration. You can create dedicated channels for transparent communication, raise renewal requests, approve workflows, and add comments without leaving your existing workflow.

6. Negotiation Assistance With Price Benchmarking

Negotiation assistance is a crucial feature that CloudEagle.ai offers to optimize your SaaS spending.

This tool empowers you to make informed decisions during procurement and renewals, ensuring you pay fair prices for your software subscriptions.

‍

‍

CloudEagle.ai provides access to an extensive, AI-powered database called the SaaS Map. This resource contains information on over 150,000 vendors and is updated weekly with data from field experts, more than 1 billion transactions, and a vast network of SaaS buyers.

Consequently, you receive the most up-to-date and accurate price benchmarks available in the market.

With CloudEagle.ai, you can easily compare your current spending against industry benchmarks. The platform considers factors such as your company size, license count, contract term, and average cost per license to determine if you're overpaying or underpaying for services.

This actionable data allows you to approach vendor negotiations with confidence and leverage.

‍

‍

CloudEagle.ai provides detailed SaaS buying guides based on data collected from real buyers. These guides offer valuable insights into negotiation strategies, helping you anticipate how conversations with vendors will unfold.

As a result, you enter negotiations well-prepared and equipped to secure the best possible deals.

‍

How ITAM and SAM Professionals Can Transition to SaaS Management

To effectively transition to SaaS management, you need to develop some skills and leverage appropriate tools. Additionally, there are real-world examples to give you valuable insights into successful transitions.

1. Key Skills and Tools Required for Effective SaaS Management

Analytical Reasoning

You must be able to interpret complex data and identify patterns in SaaS usage and spending. This skill helps you make informed decisions about license optimization and cost reduction.

Organizational Skills

Managing multiple SaaS applications requires meticulous organization. You need to keep track of contracts, renewals, and usage data across your entire SaaS portfolio.

Independence and Initiative

As an ITAM and SAM professional embracing SaaS management, you'll often work independently to identify opportunities for improvement. You must take the initiative to address issues proactively and optimize your SaaS stack.

Customer-Centric Approach

Understanding user needs is crucial. You should be adept at gathering and interpreting user feedback to ensure your SaaS solutions meet organizational requirements.

Communication Skills

You'll interact with various stakeholders, from IT teams to C-level executives. Clear, precise communication is essential to convey complex SaaS management concepts and justify decisions.

2. Case Studies of Successful SaaS Management Transitions:

Rec Room: Gaining Visibility on Free Apps

Rec Room struggled with uncontrolled SaaS proliferation and shadow IT, lacking visibility into unauthorized purchases. They implemented CloudEagle's SaaS management solution and integrated it with their SSO and finance systems.

As a result, Rec Room uncovered previously unknown free apps, eliminated redundant applications, and controlled shadow IT through centralized visibility and proactive alerts. You can check more about how it happened HERE.

Falkonry: Optimizing SaaS Renewals

‍

‍

Falkonry faced unnecessary expenses from auto-renewals and experienced app downtime due to missed renewal deadlines. They adopted CloudEagle to automate contract renewals, creating a renewal calendar and initiating workflows 90 days in advance.

Consequently, Falkonry saved 1350 hours annually on renewals, realized $401,200 in savings, and saved 1650 hours yearly in contract management. They successfully prevented unnecessary expenses and app access restrictions.

These case studies show the tangible benefits of transitioning to effective SaaS management.

By developing the necessary skills and leveraging tools like CloudEagle.ai, you will achieve similar results in your organization, optimizing costs, improving visibility, and enhancing overall SaaS governance.

‍

Conclusion

As an ITAM or SAM professional, embracing SaaS management is no longer optional—it's crucial for your organization's success. By adopting this approach, you'll gain visibility, control costs, and ensure compliance in the rapidly evolving SaaS sector.

Take the next step in your professional evolution: Book a demo with CloudEagle.ai today to see how we can transform your SaaS management strategy.

‍

Frequently Asked Questions

1. What is SaaS management?

SaaS management involves overseeing and optimizing your organization's cloud-based software applications. You'll discover all SaaS apps, monitor usage, manage licenses, ensure security compliance, and control costs.

SaaS requires continuous oversight due to its dynamic nature, unlike traditional software management.

2. What are the financial implications of poor SaaS management?

Without effective SaaS management, you risk overspending on unused licenses, duplicate applications, and auto-renewals. Furthermore, you may face compliance fines due to unauthorized data access or security breaches.

3. How can SaaS management improve productivity?

Proper SaaS management ensures employees have access to the right tools. You'll streamline onboarding processes, reduce time spent searching for appropriate applications, and eliminate workflow disruptions caused by expired licenses or access issues.

‍

‍