What Is SaaS Management and Why Does Your Business Need It? 

Software as a Service (SaaS) has become an integral part of modern-day business. It offers businesses flexible, cost-effective, and scalable solutions to meet their growing technology needs. Companies across various industries rely on different SaaS applications to enhance productivity, collaboration, and overall efficiency.

However, the more SaaS tools a company manages and uses, the more complicated it may get without a strategic approach. That is where SaaS management comes into play. SaaS management is the practice of monitoring, optimizing, and securing the various SaaS applications a business has at its disposal.

According to Forbes, SaaS market has grown increasingly with estimated growth of $32.9 billion from last year, for a total of $186.4 billion. Without adequate SaaS management software, businesses are left exposed to a range of problems, from inflated costs through data security risks to operational inefficacies.

This article examines what SaaS management is, why it is important for enterprises, and how organizations can develop an effective SaaS management strategy.

What Is SaaS Management?

SaaS management involves the total visibility and control of all SaaS applications across an organization. It allows the organization to have a better overview of the applications, usage, cost optimization, and risk management. SaaS Management Platforms (SMPs) are software solutions developed to simplify these processes.

They have become the go-to software where all deployments of SaaS applications are managed, with all associated functions such as discovery and tracking through cost optimization and security monitoring.

Successful SaaS management comprises four major functions:

1. Application Discovery and Tracking

It is common for medium or large corporations to have subscribed to numerous SaaS applications distributed across various departments. Keeping track of all these tools can be challenging. SaaS management enables businesses to discover and monitor all applications in use, reducing the risk of shadow IT and ensuring compliance with company policies.

2. Cost Optimization and License Management

It is estimated that SaaS expenditures drain a company of anywhere between 30% and 40% of its finances. SaaS management tools help companies analyse applications and subscriptions that are either accessed infrequently or that are completely redundant. This helps them optimize license allocation, so businesses pay only for their appropriate level of software usage.

3. Security and Compliance Monitoring

A security breach or non-compliance could lay bare a severe negative consequence. Engaging SaaS management comprises monitoring permission levels, executing security policies, and ensuring compliance with industry regulations like GDPR and SOC 2 Type 2.

4. Workflow Automation

Manual software provisioning and deprovisioning wastes time and increases the risk of human error. SaaS management tools automate software provisioning and deprovisioning functions, thereby reducing IT operational load and increasing operational efficiency.

Why Does Your Business Need SaaS Management?

There are several major advantages of a good SaaS management program:

1) Cost Optimization & Budget Control

  • Business organizations end up spending a lot of money when they do not manage their software subscriptions. The SaaS management team identifies duplicate tools, unused software, and redundancies in license management to cut down on unnecessary spending.
  • Many companies find themselves subscribing to software applications that are very seldom or never been used. By utilizing analytics of such use, SaaS management tools remove instances of wasteful spending and reallocate funds to critical applications.
  • If a SaaS management plan is in place, software licenses should be assigned based on actual usage. This includes properly recording renewal dates to prevent unnecessary spending on subscriptions.

2) Improved Security & Compliance

  • Many applications are subscribed to by employees without IT knowledge and approval, exposing the company to security and compliance risks. SaaS management ensures visibility of all SaaS usages, assisting businesses in providing protection against risks associated with nonapproved software.
  • For industries such as healthcare, finance, and legal services, regulatory compliance is a critical issue for businesses. SaaS management enforces security protocols and keeps track of data access, thereby helping organizations comply with GDPR, HIPAA and ISO 27001 requests.
  • Unauthorized access by nonapproved persons to enterprise applications may result in a breach of data security. SaaS management ensures that access to applications is strictly done by approved users, thus minimizing the chances of any security-related threats.

3) Increased Operational Efficiency

  • Multiple SaaS applications lead to a dynamically integrated essence of management since all operations are brought under one dashboard with visibility and control. This enables organizations to monitor usages, track expenses, and enforce policies effectively.
  • Manually assigning and revoking software rights is labour-intensive. The SaaS Management system automates such repetitive tasks, freeing teams to dedicate more focused attention on important strategic activities, improving overall performance and leveraging resources more effectively.

4) Enhanced Employee Productivity

  • SaaS management grants employees’ immediate access to applications and software without administrative delays or interruptions, thereby enhancing the overall effectiveness of the work process.
  • Technical issues related to software compatibility or access often impact employees. SaaS platforms address these limitations and problems with a well-established SaaS environment.
  • New employees require access to several applications and software for their work, whereas departing employees require, that access to their accounts be revoked. This process can be automated with SaaS management tools, thus reducing administrative workload, and acting as another security feature.

How to Implement SaaS Management in Your Business

Effective SaaS management is a process which consists of multiple steps. Let’s look at them:

1) Conduct a SaaS Audit

Start by thoroughly assessing your existing SaaS landscape. Identify all applications, users, licenses, and associated expenses. The SaaS audit provides a useful foundation for identifying optimization opportunities and potential security risks that need mitigation.

2) Establish a SaaS Management Policy

Create a formal policy that dictates how your organization manages SaaS applications. This policy should address, in clear terms, the considerations of security, compliance, and cost of procurement.

3) Choose a SaaS Management Platform (SMP)

Select an SMP that meets the demands in your organization, one that automates monitoring, license management, and security standards. Consider factors like scalability, integration capabilities, and reporting features. This helps in reducing manual work.

4) Regular Review and Monitoring

Keep looking carefully at your SaaS environment with respect to tracking usage, spending, and security risks. According to the 2023 Snapshot Survey: SaaS and Cloud Spend Optimization & Automation, 64% of companies experience unplanned SaaS expenditures.

The main cause of this waste and inefficiency are dependency on outdated processes, inaccurate projections during license procurement, and a lack of promptness in decommissioning licenses when they are no longer required. Regular reviews ensure alignment with your expectations.

5) Employee Training

Set in training employees on your organization’s SaaS management policies and best practices. Educate them about responsible usage of SaaS applications, including the protocols for data security and standards. This creates an overall secure and efficient environment for SaaS applications.

Conclusion

It’s no longer a choice to have a proper management of SaaS applications; it is imperative for controlling costs, securing data, and improving productivity. Without a proper SaaS management strategy, businesses face the risk of overspending, opening themselves to security issues, and gaining diminished efficiencies.

If your business depends on various SaaS applications, then this is your time to adopt a strategic SaaS management approach. Meet CloudFuze Connect, our brand-new launch!

CloudFuze Connect is a strong SaaS management tool to give enterprises a full-fledged command of their SaaS ecosystem. From app usage tracking and cost optimization to security policies implementation and workflow streamlining—CloudFuze Connect provides much-needed automation and real-time insight for seamless SaaS management.

Are you ready to take control of your SaaS environment? Then what are you waiting for? To gain that expertise, take CloudFuze Connect into your hands!

Reach out to us today and sign up for a free demo!