Why Managing SaaS Subscriptions Is Important

Reading Time: 4 minutes

A common mistake people make about Software as a Service (SaaS) is that they don’t need managing within an organization. Due to the nature and delivery of the software, employees believe they can use them without telling their IT manager or department. Since the software is accessible through the internet as opposed to on-premises, it doesn’t even affect IT, right?

Unfortunately, that’s incorrect.

IT handles software consumed by the employees of the organization which happens to include SaaS. However, you must be wondering how IT can manage these services that don’t usually go through their approval.

Before we tell you the secrets, let’s review the basics of SaaS and why they require management.

Advantage #1: They’re accessible

SaaS subscriptions are accessible online. They are cloud-based software solutions in which software providers deliver applications to users over the internet, according to Salesforce. So, the organization does not need to store the software of their servers, saving them space, backup obligations, and installation time. SaaS are usually bought on a monthly or yearly subscription that includes upgrades and maintenance fees. This encourages organizations to opt for this payment method in comparison to a one-time payment with yearly updates or maintenance that they must manage on their own. Automatic upgrades and accessible maintenance are valuable to organizations as it saves them time with managing vendors.

Advantage #2: Personnel to manage them

Another advantage of SaaS subscriptions is the necessary personnel to manage them. According to Salesforce, organizations don’t need to allocation any personnel to their SaaS subscriptions. However, this statement is not correct. There are many reasons why organizations should, if they haven’t already, establish proper processes to manage their SaaS subscriptions-  with personnel and a Software Asset Management (SAM) tool.

Advantage #3: Reduces costs and wasteful consumption

More employees need SaaS to complete business tasks. However, their usage is so easy that costs can get out of hand. For example, many departments can buy the same services. Without a centralized management, the organizations loses on volume discounts. In addition, it isn’t difficult to forget about a subscription. Vendors can take small fees every month without anyone noticing. Now multiply this issue among several departments and several subscriptions. That’s a lot of money wasted! The lack of management means no one actually knows who has access to which software, leading to confusion and even repurchasing the same software not knowing it was already bought. Then, over time costs rise and organization information spreads without proper security measures.

SaaS subscriptions need management.

Here are 3 ways to help manage your SaaS subscriptions:

1. Set Up Enterprise Application Store

An Enterprise Application (App) Store is an online portal with all the services the employees can access. Having an Enterprise App Store controls what people can access as it is already approved by the organization. The centralized location also gets rid of communication issues between IT and employees. IT can monitor who is requesting what service and are aware of any new software that might not already be able. IT can then go about the appropriate processes to get it approved with the organization and negotiate with the vendors for discounts.

2. Establish Common Practices

The Enterprise App Store encourages employees to follow necessary protocol in getting SaaS subscriptions. By making it easy for employees to get access to services, they are more likely to want to follow processes. IT handles putting in place the necessary processes to manage cloud subscriptions. The Enterprise App Store is a great start but what if an employee needs a service that isn’t listed? Will a form be readily available or should they send an email to the department? What happens if they want to use a service that isn’t approved by the organization? Will they be sent an email? Will IT provide alternative options? In order to manage SaaS subscriptions, the processes have to be thought out and communicated with the employees. So establishing processes is important for IT to maintain control of SaaS costs and their usage.

3. A SAM tool

A Software Asset Management tool is ideal for managing software assets including software on-premises and SaaS subscriptions. Although a SAM tool has many functions, like streamlining processes, it is known for getting important data from one central location. For example, it tells you who has access to what software and what is actually being used without having to do it manually. It provides reliable data for IT to make informed decisions likes negotiating prices. A SAM tool is the easiest way to manage SaaS subscriptions because the data is automatically generated, and the processes can streamline through the tool. It can connect to your Enterprise App Store and keep track of other software you have bought. Keeping information in one central location allows IT to make better decisions and accurate reporting.

Due to the fact that SaaS subscriptions are becoming more popular in the workforce, IT should prepare to manage cloud-based services.

3 ways IT can reduce organizational costs and maintain control of SaaS subscriptions

  1. Set up an Enterprise App Store
  2. Put in place processes that surround the use of the services
  3. Invest in a SAM tool

Experts recommend to search for a tool, like VIZOR, that can manage all your software as well as IT assets. So this causes more efficient workflows and better control over your IT assets, especially your SaaS subscriptions.

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Laura Lepore Bernhard

Laura is an Inbound Marketer at VIZOR. She focuses her time on creating content strategies, promotional plans and learning about the ever-evolving tech world. In her spare time, she likes trying new restaurants and reading.

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