You're Missing This In Your Software Asset Management Strategy

‍

While SAM tools are great for managing traditional software, they aren’t free from flaws. There’s one crucial component missing from your strategy: a SaaS Management Platform. Having both SAM tools and an SMP can make your software asset management strategy much more effective.

This article will discuss the pitfalls of a SAM tool and its key differences with an SMP. We will also discuss the importance of integrating SaaS management with your SAM strategy.

‍

TL;DR

• SAM Tools vs. SMPs: Traditional SAM tools are effective for managing on-premise software but fall short in handling SaaS complexities like shadow IT, decentralized purchasing, and real-time usage tracking. Integrating a SaaS Management Platform (SMP) with your SAM strategy is crucial for managing cloud-based applications.
• Real-Time SaaS Visibility: SMPs like CloudEagle.ai provide real-time visibility into SaaS usage and spending, enabling better cost optimization, license management, and reducing the risk of paying for unused subscriptions.
• Enhanced Security and Compliance: SMPs offer advanced security features, including shadow IT detection, real-time alerts, and automated compliance monitoring, which are often missing in traditional SAM tools.
• Automated Workflows: SMPs automate various tasks such as procurement, onboarding, and offboarding, reducing manual efforts and minimizing errors, unlike SAM tools that rely heavily on manual processes.
• Slack Integration: SMPs integrate seamlessly with Slack, allowing teams to manage software directly from their communication platform, streamlining procurement requests and renewals, and improving response times.

‍

1. The Shortcomings of Traditional SAM Tools for SaaS Management

Traditional software asset management tools are highly effective for managing on-premise software licenses. They track software installations and optimize usage to prevent unnecessary spending.

However, when it comes to SaaS, SAM tools start to fall short. These tools are not designed to handle the complexities of SaaS, particularly in areas like shadow IT, decentralized purchasing, and real-time usage tracking.

Incomplete Application Discovery

Shadow IT is a major concern with SaaS management. Unlike traditional software, employees purchase and use SaaS applications without IT's knowledge. SAM tools often fail to discover these applications fully due to lack of integrations, leading to incomplete visibility and control.

‍

‍

This means that you might unknowingly have multiple subscriptions to the same software. On top of that, you’ll miss critical security gaps caused by unauthorized applications.

Decentralized Purchasing

Decentralized purchasing further complicates SaaS management. With SaaS, procurement doesn’t always flow through central IT or finance departments.

Your employees can acquire and manage their own licenses, creating fragmented data on SaaS spending and usage. Traditional SAM tools cannot track and manage these decentralized purchases effectively

Lack of Usage Tracking

SAM tools struggle with real-time usage tracking. SaaS applications operate on a subscription basis, meaning usage fluctuates based on team needs. SAM tools typically rely on periodic audits and manual inputs.

Therefore, it’s extremely hard to maintain an up-to-date view of SaaS consumption. This lack of real-time visibility can result in paying for unused subscriptions and missed renewal deadlines.

Integration Limitations

Integration limitations also hinder SAM tools. Unlike Software Management Platforms, traditional SAM tools often have limited integration capabilities.

They may not be able to connect to key SaaS applications, making them ineffective for managing the full range of a company's software ecosystem. Without this integration, it’s difficult to automate workflows and track usage.

‍

2. What is a SaaS Management Platform?

A SaaS Management Platform can help you manage your SaaS applications more efficiently. In contrast to SAM tools, an SMP gives you real-time visibility into all the SaaS apps your organization uses in one place as it has extensive integration libraries.

The purpose of a SaaS Management Platform (SMP) is to help you streamline the management of your organization’s SaaS applications. It enables you to gain full visibility into all software subscriptions.

‍

‍

Moreover, an SMP ensures you're not overpaying for unused or redundant subscriptions. It also helps you mitigate risks from shadow IT and maintain compliance with software policies.

Ultimately, an SMP allows you to manage your SaaS ecosystem more efficiently, reducing costs and increasing operational control. This way, you can optimize your SaaS portfolio and cut down on unnecessary costs.

‍

3. Key Differences Between SaaS and SAM Management

While both SAM tools and SaaS management can optimize software usage and costs, they have some key differences. SAM is built for traditional, on-premise software, while SaaS management platforms handle cloud-based, subscription software.

‍

‍

4. Why it is Necessary to Integrate SaaS Management with Your SAM Strategy

4.1. Real-Time Visibility into SaaS Usage and Spending

Integrating SaaS management with your Software Asset Management (SAM) strategy is more than a smart choice. SAM tools are great at managing traditional software licenses and maintaining compliance for on-premise or desktop software. However, they cannot often handle different types of SaaS applications.

This gap is crucial because SaaS apps are being adopted rapidly. A SaaS management platform offers real-time visibility into how these apps are being used, how often, and by which departments or users.

More importantly, it also gives a clear view of your SaaS spending, allowing you to track your budget. SaaS costs can quickly spiral out of control without this level of insight. With a SaaS management platform integrated into your SAM strategy, you can regain control over these cloud-based tools.

CloudEagle.ai provides over 500 integrations, offering detailed feature-level usage insights. Its deeper integrations enable real-time logins and tracking across all SaaS applications, allowing for efficient license allocation.

‍

‍

‍With its extensive integration library, CloudEagle.ai ensures precise, real-time data collection. For example, it can track specific activities such as the number and duration of Zoom meetings or the number of envelopes sent through DocuSign—tasks that SAM tools typically cannot handle.

4.2. Improved Cost Optimization and License Management

Integrating a SaaS management platform into your SAM strategy significantly enhances cost optimization and license management. These are essential to an efficient software ecosystem.

SaaS apps often have monthly billing cycles, which means without proper oversight, costs can skyrocket due to unused licenses.

A SaaS management platform allows you real-time tracking of your SaaS licenses. You can spot and cancel redundant subscriptions before they become a financial drain. It also ensures you can accurately allocate licenses based on actual usage data.

Thus, you don’t need to pay for tools that employees no longer need or use. This approach to license management also supports efficient scaling, allowing you to adjust your software stack.

CloudEagle.ai automatically reclaims unused licenses through customizable workflows. You can set up triggers based on usage thresholds, offboarding dates, and other criteria to streamline license harvesting.

‍

‍

With feature-level usage insights, it harvests low usage licenses, recommending downgrades at the user level for more efficient cost management. Thus, no need to worry about unused licenses affecting your business.

Let’s see the valuable insights from Nidhi Jain, CEO of CloudEagle, and Nicole Jordan, the CFO and Head of HR at Clover on software cost optimization:

‍

‍

4.3. Detect and prevent shadow IT with real-time alerts

A SaaS management platform can effectively detect and prevent shadow IT. It occurs when employees use unauthorized SaaS applications without IT’s knowledge, creating security risks and inefficiencies.

Traditional SAM tools often can’t track these unauthorized tools in real time. As a result, it becomes too difficult to catch shadow IT before it causes problems.

A SaaS management platform provides alerts that immediately notify you when unapproved software is being used. This means rogue applications can be shut down before they lead to data breaches and compliance issues. The real-time visibility also helps to maintain a secure and standardized software environment.

4.4. Contract management and data-backed negotiation

A SaaS management platform offers significant advantages in contract management and data-backed negotiation, which are areas where traditional SAM tools often fall short. With SaaS applications, contracts usually have shorter renewal cycles and frequent updates.

Managing these contracts manually or through a SAM-only approach can result in missed renewal dates or costly auto-renewals. But with a SaaS management platform, you can centralize all agreements and renewal dates.

‍

‍

It provides real-time alerts when a contract is approaching its renewal. This way, it’s easier to align your contracts with actual usage data, ensuring that you're not overpaying for features or licenses.

CloudEagle.ai securely centralizes all vendor contracts in a single location, using AI-driven metadata extraction to eliminate the need for manual data entry and minimize errors.

Moreover, CloudEagle.ai eliminates the need for guesswork or relying on peers for benchmarking data. You can confidently negotiate and close deals faster without the hassle of lengthy peer consultations.

‍

‍

For example, Nowports was missing key data points, such as application usage statistics and contract renewal timelines. They also lacked access to benchmarking data, which limited their ability to negotiate effectively with vendors during procurement and renewal processes.

CloudEagle.ai's AI platform, along with a team of experienced SaaS buyers, negotiated with vendors to secure contract discounts, ultimately saving significant time and money for Nowports.

4.5. Renewal management

Renewal management becomes far more efficient when you include a SaaS management platform in your SAM strategy. As mentioned earlier, SaaS applications often have shorter and more flexible billing cycles. Managing these renewals manually or solely through a SAM tool can lead to missed deadlines.

A SaaS management platform like CloudEagle.ai can streamline the renewal process and provide timely alerts well before a contract is due for renewal. This gives you ample time to assess whether the tool is still necessary or if it's time to negotiate for better terms.

‍

‍

On top of that, you will have a clear view of all your renewals. It ensures that you're never caught off guard by surprise costs or renewals of tools that are no longer in active use.

4.6. Enhanced Security and Compliance Management

Enhanced security and compliance management are critical benefits of integrating a SaaS management platform with your SAM strategy. Primarily because SAM tools often lack the capabilities needed to address the security and compliance challenges associated with SaaS applications.

A SaaS management platform can undoubtedly enhance your security posture. You’ll get comprehensive visibility into the security practices and compliance status of all SaaS applications.

Therefore, you can evaluate and monitor each app’s security certifications and compliance with industry regulations. Additionally, these platforms often provide features such as risk assessments and vulnerability scans.

You can identify potential security weaknesses in your software stack. Automated alerts can notify you of potential compliance issues or security breaches in real time. You can take swift action to mitigate risks and maintain adherence to required standards.

4.7. Automated Workflows and Reduced Manual Processes

Traditional SAM tools often require manual tracking of software usage and license renewals. These can be time-consuming and prone to human error. In contrast, a SaaS management platform automates many of these tasks.

With automated workflows, tasks like onboarding new employees, intake request approvals, and managing renewals can be streamlined.

This way, you can minimize the risk of missed renewals and overpurchasing licenses. Automation not only improves operational efficiency but also helps your team focus on more strategic initiatives.

CloudEagle.ai can automate various aspects of your SaaS landscape. Let’s take a look at some features.

Procurement Workflows

CloudEagle.ai’s automated procurement workflows improve transparency and minimize delays in the procurement process. When a purchase request is initiated, key stakeholders are instantly notified via Slack and email.

You can track progress in real-time, accelerating the overall procurement timeline. Additionally, automated workflows handle tasks like license reclamation, renewals, user provisioning, and deprovisioning, ensuring efficient and seamless software management.

Automated Employee Onboarding

Manual employee onboarding can be a lengthy process, but CloudEagle.ai’s auto-provisioning workflows streamline and speed it up.

You can create workflows that automatically assign app access to new employees based on their roles and departments, saving your IT team valuable time.

‍

‍

With CloudEagle.ai, new hires gain immediate access to the tools they need, ensuring they’re productive from day one. The platform even suggests relevant applications tailored to each employee’s role, eliminating delays and manual approvals.

Let’s take Remediant as an example. Their IT team faced challenges with the manual process of user provisioning and deprovisioning across various SaaS applications, resulting in time-consuming tasks.

CloudEagle.ai automated their employee onboarding and offboarding processes. After integrating with their systems, CloudEagle.ai offered full visibility into Remediant's user management module. This centralization simplified user access management, making provisioning and de-provisioning seamless

Automated Employee Offboarding

When an employee's contract ends, there's no need to manually revoke access to each application. CloudEagle.ai allows you to set up automated deprovisioning rules that handle this process for you.

‍

‍

You can also configure workflows to automatically revoke access for inactive employees. If a user hasn’t logged into an application within a specified timeframe, their access can be removed to prevent unauthorized usage.

With CloudEagle.ai’s auto-deprovisioning features, you eliminate the risk of unmanaged or unauthorized access, ensuring your business remains secure and protected.

4.8. Slack integration

Slack integration with a SaaS management platform offers a seamless way to enhance communication. SAM tools cannot do this as you must switch between different systems for managing software and communicating with teams.

In contrast, integrating your SaaS management platform with Slack helps you manage software directly from your team’s daily communication environment. With Slack integration, you can set up real-time notifications and alerts for various SaaS management activities.

This means instead of checking multiple platforms, and your team receives instant updates directly within Slack channels. This immediate access to important information makes response time faster.

With CloudEagle.ai, employees can request app access directly through Slack, eliminating the need to visit a portal or send emails. App admins receive instant notifications and can approve or deny requests right within Slack.

‍

‍

The Slack integration serves as a unified gateway for all procurement requests. Additionally, a dedicated Slack channel is created to keep all stakeholders informed about renewals, ensuring seamless communication and timely action.

‍

Conclusion

So, now you know the importance of integrating a SaaS management platform into your software asset management strategy. But what will happen if you don’t use an SMP? What if you continue using a SAM tool only?

Your business will face various consequences. You won’t be able to know the software your employees are using. Moreover, the risks of shadow IT will also increase. Besides limited integrations, you’ll have to deal with poor visibility and inaccurate usage tracking.

Don’t make the mistake of overlooking an SMP. CloudEagle.ai is an effective SaaS management and procurement platform that can help you gain complete visibility over your SaaS portfolio.

Schedule a demo with our experts and learn how CloudEagle.ai can streamline your entire SaaS landscape.

‍

‍