Why Software Asset Managers Can’t Afford to Overlook SaaS Management?

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For you, as a software asset manager, managing your organization’s SaaS environment isn’t just a technical task—it’s a strategic necessity.

Without careful SaaS management, these applications can lead to inefficiencies, security risks, and escalating costs. Overlooking this responsibility can result in various problems that could affect your organization.

Given these risks, you can’t ignore SaaS management. When you prioritize this, you ensure that software is used effectively. This article will discuss why SAMs should not overlook SaaS management.

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TL;DR

• As SaaS adoption grows, overlooking SaaS management can lead to overspending, security risks, and compliance issues.
• Prioritizing SaaS management provides full visibility over the SaaS environment and prevents shadow IT.
• Effective SaaS management helps prevent resource waste by optimizing license usage and negotiating better contracts.
• Proper SaaS management reduces security vulnerabilities, ensures compliance with regulations, and manages access to prevent unauthorized use.
• Tools like CloudEagle.ai can automate SaaS management processes, improve efficiency, and maximize cost savings.

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Key Reasons Software Asset Managers Must Prioritize SaaS Management

1. Get Complete Visibility on SaaS

This is a key reason why you must prioritize SaaS management as a software asset manager. You will gain complete visibility over all SaaS applications used within your organization. Without proper oversight, your SaaS subscriptions will remain unchecked.

This will pose various problems for your organization. For instance, you won’t be aware of all the tools being used, by whom, and for what purpose. This lack of transparency can result in untracked expenses and potential security issues.

However, thanks to SaaS management, you can monitor and catalog every subscription, ensuring that nothing stays hidden. This visibility allows you to identify redundant applications and minimize shadow IT.

Moreover, you can know which SaaS tools add value to your organization and which ones can be eliminated. This will prove beneficial in the long run as you can optimize software spend and ensure SaaS usage aligns perfectly with your company's goals.

2. Overspending and Resource Waste

Sometimes, your business may end up having underutilized and duplicate SaaS licenses. This is a pretty common scenario, especially with a large business with many SaaS subscriptions. These unnecessary expenses can add up quickly, affecting your overall budget.

SaaS license management will help you identify areas where your organization is overspending and take corrective action. This involves reclaiming unused licenses, vendor negotiation, or consolidating multiple subscriptions into a single solution. Additionally, you can track usage patterns across your organization.

As a result, you can protect your organization's financial health and also free up resources. This makes SaaS management an important aspect of your overall software asset strategy.

3. Security and Compliance Risks

Security and compliance risks are significant concerns. And as a software asset manager, you cannot overlook its importance when it comes to SaaS management. Each SaaS application your organization uses can have vulnerabilities, especially if not properly managed.

If you don’t know who’s using which applications, your organization can face security breaches and compliance violations. This is why we recommend you cross-check if your applications are updated and compliant with regulations. It will help you mitigate security and compliance risks.

Additionally, effective SaaS management helps you stay on top of vendor compliance. You can ensure the tools you rely on adhere to industry standards and regulations, such as GDPR, HIPAA, or SOC 2.

4. Negotiating Better Contracts

Prioritizing SaaS management can help you negotiate better contracts with vendors. This strategy alone can lead to significant cost savings and improved service terms.

When you know your organization’s SaaS usage, including how many employees use which applications, you can approach vendors with data-driven insights. This will help you negotiate more effectively, and you can secure the best pricing with favorable contract terms.

Moreover, you can avoid overpaying for features or user licenses you don’t need. And if you need to renegotiate terms with your vendors, you can further optimize your costs. Vendors are more likely to offer discounts upon seeing your asset management and understanding of requirements.

You can track contract renewal dates, ensuring that you don’t miss renegotiation opportunities or switch to more cost-effective alternatives. You can save money and get the best value from your SaaS investments.

5. Adhering to Licensing Agreements

As a software asset manager, you must ensure your organization remains compliant with the terms and conditions of all software licenses. Failing to do so can result in hefty penalties, legal challenges, or even access revocation to critical tools.

With SaaS management, you can closely monitor how licenses are being used across your organization. This includes tracking the number of users and ensuring usage doesn’t exceed the agreed-upon limits. These details will help you avoid costly mistakes arising from unintentional non-compliance.

You can identify and address any discrepancies in license usage before they become a problem. For instance, if you notice that certain licenses are underutilized, you might decide to reduce the number of subscriptions. On the other hand, if your organization consistently exceeds usage limits, you can upgrade your plan to avoid any compliance issues.

6. Managing Access and Permissions

When you manage app access and permissions, you can boost your organization's security and prevent data theft. Without controlling who has access to which SaaS applications, you risk unauthorized users accessing sensitive information. Moreover, your employees would retain access to tools even after they've changed roles or left the company.

Prioritizing SaaS management helps you give, modify, and revoke app access based on user roles and responsibilities. This ensures that each employee only has access to the applications and data necessary for their job.

Apart from that, managing access and permissions effectively also improves operational efficiency. For instance, automating onboarding and offboarding processes reduces the administrative burden on your IT and HR teams.

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Key Challenges for Software Asset Managers in Managing SaaS

1. Complexity of SaaS License

Managing the SaaS licenses is undoubtedly a challenging step. Unlike traditional software licenses, SaaS licenses can be highly complex and varied, with different pricing models, usage terms, and many more. This complexity can lead to significant license waste if not properly managed.

License waste occurs when your organization pays for more licenses than it actually uses. With the proliferation of SaaS applications across departments, it’s easy to lose track of how many licenses are in use. This results in unnecessary costs and complicates compliance agreements.

Without the right tools and processes in place, managing SaaS licenses can quickly become overwhelming. Sooner than not, it will lead to inefficiencies and increased costs.

2. Risks of Unmanaged Applications

Unmanaged applications, often called shadow IT, are SaaS tools that employees purchase without IT approval. While these applications might seem harmless at first, they are difficult to control.

When SaaS applications go unmanaged, it becomes nearly impossible to track who is using what tools. This lack of visibility can lead to several issues, including data breaches and increased vulnerability to cyberattacks. Additionally, unmanaged applications can result in redundant or overlapping functionalities.

Thus, you must identify these shadow IT applications under SaaS management. You need to use the right tools for discovery and monitoring.

3. Impact on Security and Compliance

Managing the impact of SaaS on security and compliance is another critical challenge. As the reliance on SaaS applications grows, you can face new security risks and compliance concerns.

SaaS applications often handle sensitive data. So, if these tools are not properly managed, they can become entry points for cyberattacks. In such cases, traditional security measures may not be sufficient to protect your organization’s data.

Additionally, without a centralized management system, it becomes difficult to ensure that all applications comply with industry regulations. And, each change introduces the potential for new vulnerabilities or compliance gaps.

4. Tracking Usage and Costs

As a software asset manager, your business will adopt SaaS across different departments. Therefore, keeping a clear and accurate record of how each application is used and how much it costs can quickly become overwhelming.

You can face problems tracking SaaS usage, where different teams may subscribe to and use various tools independently. Without a centralized system to monitor usage, it’s easy to lose sight of how many licenses are in use.

On top of that, you cannot know which features are being utilized and whether the organization is getting value for its investment. This lack of visibility can lead to SaaS sprawl and unnecessary costs.

5. Managing Multiple Vendors

Multiple SaaS vendor management is another complex challenge you face as a software asset manager. As your business purchases more SaaS applications, you’ll work with multiple vendors. Managing these relationships effectively requires organization and attention to detail skills.

One of the main difficulties is ensuring consistency and transparency across all contracts and agreements. Each vendor may have different billing cycles and renewal dates. Hence, you can easily miss critical deadlines or overlook important details.

It will result in contract auto-renewals at unfavorable terms. Sometimes, you may also end up paying for unanticipated expenses.

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Best Practices for Effective SaaS Management

1. Regular Audits and Reviews

Make sure you conduct regular audits and reviews of all the SaaS applications in use across your organization. These audits are essential for maintaining control over your software assets. It will ensure that each tool aligns with your business objectives.

Regular audits help you know which applications are redundant or underutilized. As a result, you can know which tools can be consolidated, helping you eliminate unnecessary subscriptions.

Apart from that, these reviews will help you maintain compliance with licensing agreements and industry regulations. Your data security measures will stay updated and your business will remain compliant with relevant standards.

2. Strategic Resource Allocation

Allocating resources strategically will help you make the most out of your software investments. This approach will also ensure that resources are deployed where they are most needed.

However, don’t forget to carefully analyze your organization’s SaaS usage. It’s the only way to know more about your SaaS tools. It also helps you identify opportunities to invest in new tools that can drive innovation or improve productivity.

In addition to financial resources, strategic allocation also includes managing human resources effectively. This means ensuring that the right teams have access to the right tools and are trained to use them efficiently.

3. Evaluating Vendor Performance

When you evaluate vendor performance, you can ensure that they are meeting their commitments. You will know their strengths and weaknesses, which will help you address any issues. Consequently, you can make informed decisions about continuing or adjusting your vendor relationships.

Vendor performance evaluation involves tracking key metrics. Some of the most important ones are:

• System uptime
• Negotiation clauses
• Security incident response time
• Product delivery
• Exit strategy
• Adherence to SLAs

This way, you can know whether your vendors are fulfilling their contractual obligations. If a vendor consistently underperforms, it may be time to renegotiate terms.

In addition, regular reviews help you discuss future needs and innovations with your vendors. This can lead to better vendor relationships.

4. Educating Teams on SaaS Usage

This is one of the most important practices for effective SaaS management. When you educate your teams, they will fully understand how to utilize the available tools. They won’t make mistakes and maximize the value of your SaaS investments.

However, the training and educating part is easier said than done. You must familiarize them with the functionalities and features of the SaaS tools. Creating and sharing user manuals and tutorials will prove highly beneficial.

On top of that, you need to make them aware of compliance and security. Make sure they know the best practices for password management and data handling. When they understand the consequences of data theft or breaches, they are unlikely to make such mistakes.

5. Using SaaS Management Platforms

A SaaS management platform will boost your SaaS application management strategy. These platforms provide a centralized solution for overseeing and optimizing your organization’s SaaS portfolio. There is no need to worry about the complexities of managing multiple tools and vendors.

A SaaS management platform offers comprehensive visibility into your software assets. You can track everything from one centralized dashboard. Hence, you can reduce waste and optimize your software investments.

Additionally, these platforms often include features for monitoring vendor performance. This oversight helps you address any issues proactively and maintain strong relationships with your vendors.

Another significant benefit of SaaS management platforms is their ability to enhance security and compliance. They typically provide features for managing user access and permissions. They also support regular audits and reviews, helping you comply with industry regulations.

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How CloudEagle.ai Can Streamline SaaS Management for Software Asset Managers

CloudEagle.ai is a comprehensive SaaS management platform. It can help you manage and procure SaaS solutions while streamlining access control and vendor negotiations. It supports discovering, optimizing, managing, and renewing your organization’s SaaS applications.

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Additionally, CloudEagle.ai provides specialized SaaS negotiation support, which is particularly valuable if you have a smaller procurement team. As this platform offers complete visibility into your SaaS environment, it makes governance effective and identifies opportunities for optimization, including cost-saving recommendations.

Key Features

Spend and Application Discovery

CloudEagle.ai’s 500+ integration and application discovery feature enables you to track every app in your SaaS stack. It consolidates the management of apps, spending, contracts, licenses, and vendors in one place.

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The platform also aids in categorizing apps and allocating resources efficiently. Additionally, CloudEagle.ai replaces the need for spreadsheets, serving as a comprehensive solution for SaaS management.

License Management

With CloudEagle.ai, you get detailed feature-level usage for each license through direct integrations or Excel uploads. From a unified dashboard, you can manage license types, track assigned and active users, monitor login activity, and see spending for each license.

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Automated workflows are available to reclaim unused licenses, and assign them to new users to ensure SaaS investments are utilized effectively.

Here's how RingCentral saved $1.2 million in a year by harvesting Salesforce licenses, check out this success story.

Contract Management

CloudEagle.ai lets you access all your contracts and track vendor contracts in one place. With AI-driven metadata extraction, manual entry is eliminated, reducing the risk of errors. It can automatically start renewal workflows up to 90 days in advance and send reminders via Slack and email.

SaaS Budgeting

You can allocate software budgets by department and track new hires’ software expenses alongside other benefits. CloudEagle.ai helps you analyze SaaS spending and usage, identify departments exceeding budgets, and set app-specific budgets with early warnings for overspending. This ensures effective monitoring of vendors and prevents unexpected cost overruns.

Spend Optimization

CloudEagle.ai offers the visibility needed to manage your SaaS applications efficiently. It provides usage insights to help you identify and eliminate low-usage apps.

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Additionally, CloudEagle.ai helps you recycle SaaS licenses by integrating with your HRIS to automatically revoke licenses when employees leave.

Shadow IT Alerts

Purchasing unauthorized applications, or shadow IT, can pose significant security risks and contribute to SaaS sprawl through duplicate apps. CloudEagle.ai helps you prevent shadow IT by immediately notifying you of any unauthorized applications purchased. This enables you to address potential security threats promptly and maintain a secure environment for your business.

Assisted Buying

Want to reduce costs on your SaaS deals? CloudEagle.ai’s assisted buying feature simplifies the research process. Expert negotiators use market trends and the latest benchmarks to help you secure the best deals with your SaaS vendors.

Automated Workflows

CloudEagle.ai’s automated procurement workflows boost transparency and minimize delays. When a purchase request is made, relevant stakeholders receive automatic notifications via Slack and email.

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You can track progress in real-time, accelerating the procurement process. Automated workflows also handle tasks like license reclamation, renewals, user provisioning, and deprovisioning, ensuring efficient management.

Price Benchmarking

CloudEagle.ai provides unbiased price benchmarks from over 1 billion transactions, allowing you to compare prices with peers. With a database of over 150,000 vendors, powered by AI and machine learning, CloudEagle.ai ensures you always have options. You can evaluate whether your pricing aligns with benchmarks for your company size, license count, contract terms, and average cost per license.

Renewal Management

Avoid last-minute surprises with contract renewals using CloudEagle.ai’s automated workflows. It starts the renewal process up to 90 days in advance and ensures timely approvals from relevant stakeholders.

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Create dedicated communication channels for transparent interactions, allowing easy request submissions, workflow approvals, and comments. Monitor renewal opt-out dates 30, 60, or 90 days ahead to decide whether to continue or switch vendors.

Vendor Research

Stop wasting time on software research. CloudEagle.ai’s AI and machine learning capabilities help you quickly find the right vendors and software. Enter your requirements into CloudEagle.ai, and you'll receive a curated list of relevant SaaS vendors tailored to your business needs. All reviews, including pros and cons, are gathered in one place, so you don’t need to visit multiple sites.

Self-Service App Catalog

The self-service app catalog streamlines app access requests for both employees and administrators. When an employee submits a request, administrators are notified via Slack and email.

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Employees can easily see all the apps they currently have access to and can request new ones directly through Slack. If a similar app is already available, they’ll be directed to use that app instead of purchasing a new one.

Automated User Provisioning

Manual employee onboarding can be time-consuming, but CloudEagle.ai’s auto-provisioning workflows make it quick and efficient. You can automate workflows to assign app access to new users based on their roles and departments.

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With CloudEagle.ai, new employees can start being productive on day one, without waiting for access approvals. The platform also suggests relevant applications based on the employee’s role, ensuring immediate access without delays.

Automated User Deprovisioning

When an employee's contract ends, there's no need to manually revoke access from each application. Additionally, you can set up workflows to deprovision inactive employees. If a user hasn’t logged into an application for a set period, their access can be revoked to prevent unauthorized entry.

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With CloudEagle.ai’s auto-deprovisioning features, you can avoid unmanaged or unauthorized access, helping to safeguard your business from security risks.

Access Control

With CloudEagle.ai, you can streamline access monitoring and reviews without needing to visit each individual app. Use CloudEagle.ai’s intuitive dashboard to manage and audit access to all your SaaS applications.

Additionally, you can provide timed access to users. Specify a time period for application access, and once it expires, their access is automatically revoked.

Compliance Management

Failure to comply with the latest security regulations can lead to severe penalties and data breaches. Moreover, using non-compliant SaaS applications can result in:

• Fines and legal action
• Data and privacy concerns
• Damage to reputation
• Less competitive edge
• Security breaches

Ensuring SaaS compliance is crucial, but managing it manually can be overwhelming. CloudEagle.ai simplifies this task by collecting relevant data and offering centralized visibility to verify the compliance certifications of all your SaaS applications.

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Conclusion

As you can see, you need to pay close attention to SaaS management as a software asset manager. Ignoring SaaS management can lead to significant challenges, including overspending and security vulnerabilities.

If you’re looking for a reliable SaaS management platform, CloudEagle.ai is here to help you. It provides contract management, SaaS management, asset management, procurement, license management, enhanced integration options, and negotiation capabilities, delivering a well-rounded solution for all your SaaS management needs.

If you're interested in CloudEagle.ai, schedule a demo. Our experts will guide you through how CloudEagle.ai works and demonstrate how the platform can benefit your business.

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