The Hidden Costs of SaaS Mismanagement

SaaS apps have become indispensable tools for productivity and innovation. They are easy to implement, allowing teams to rapidly leverage their functionality without the need for long and complex setups with large infrastructure investments. These benefits have led to a rapid adoption of SaaS tools, with most organizations having 254 SaaS apps and enterprises averaging 364 apps.

However, the rapid adoption often leads to overlooked management challenges, mainly when employees leave an organization. Failure to deactivate former employees’ accounts can result in ongoing subscription payments, lack of visibility into software spending, and complications in identifying SaaS admins.

The Risks of Poor SaaS Management

As SaaS apps become increasingly integral to business operations, the challenge of managing these platforms efficiently grows correspondingly. When employees depart from an organization, these challenges become a major problem, but their SaaS accounts remain active.

This oversight also leads to continued financial commitments for unused services, draining resources and diluting the return on investment. Without active utilization, these licenses become financial burdens, quietly siphoning funds that could be better allocated within the company.

This also leads to the proliferation of duplicate and underutilized apps. Poor SaaS oversight allows duplicate tools with overlapping functionalities to accumulate within the tech stack, unnecessarily inflating costs and complicating the technological environment. This redundancy not only wastes resources but also complicates the process of streamlining operations and optimizing expenditures.

The risks extend beyond financial inefficiencies to encompass security and compliance vulnerabilities. Unmanaged SaaS accounts, especially those belonging to former employees, can become serious security loopholes. These inactive but accessible accounts may fail to comply with updated security protocols, exposing the organization to data breaches and potential regulatory penalties.

While active, these accounts can be targets for cybercriminals looking to access SaaS systems and their valuable data. They frequently employ techniques such as phishing or credential stuffing, where they leverage credentials stolen from other attacks to attempt to gain unauthorized access.

Furthermore, unchecked SaaS sprawl contributes to significant inefficiencies and team productivity issues. With no unified approach to software management, different teams may end up using various applications for similar tasks, leading to operational silos and fragmented workflows. This disorganization causes confusion among employees and hinders effective collaboration, ultimately impacting the organization’s overall productivity and ability to achieve strategic goals.

Implement an Identity-First SaaS Management Platform

Centralized SaaS management platforms are one way to counteract these challenges. These platforms offer a comprehensive solution by providing visibility across all applications, enabling efficient usage tracking and effective subscription management. With features such as user provisioning and deprovisioning, contract management, and detailed usage insights, these platforms can significantly streamline operations and bolster security protocols.

Their benefits extend beyond operational efficiency. By centralizing the control of SaaS tools, companies can ensure consistent application of security measures across their digital landscape. These platforms often incorporate robust security features like encryption and multi-factor authentication (MFA), providing a fortified defense against unauthorized access and enhancing the protection of sensitive data. This holistic approach secures data and aligns with compliance requirements, mitigating risks associated with data breaches and non-compliance penalties.

Adopting a centralized SaaS management platform can help organizations use their software resources more organized, securely, and cost-effectively.

Regular Audits and Reviews

These platforms provide the visibility necessary to understand what SaaS products are in use and how they are used. With this information, organizations can conduct regular audits and reviews of the SaaS environment to identify and address inactive accounts, eliminate redundant apps, and optimize the use of licenses. These measures clean up the digital workspace and ensure that each application adheres strictly to the organization’s security and compliance frameworks. This proactive approach significantly reduces the risk of costly data breaches and financial inefficiencies, safeguarding the organization’s assets and reputation.

Clear Policies and Procedures

SaaS management services also help establish clear policies and procedures. By implementing structured guidelines for managing SaaS apps, organizations can ensure a uniform approach to tasks such as deactivating former employees’ accounts and maintaining secure access controls. These policies help delineate roles and responsibilities within the company, fostering accountability among team members.

Such clarity in SaaS management encourages consistently applying best practices across all departments. This enhances operational efficiency and minimizes the risk of oversight and errors that could compromise security and compliance. Implementing these policies through a centralized SaaS management platform further streamlines these processes, making it easier for organizations to maintain control over their software assets and ensure adherence to established protocols.

Cost Optimization

Centralized SaaS management platforms also help optimize costs through vendor management, improving the value derived from SaaS investments. Organizations can negotiate better pricing structures by fostering strong relationships with SaaS providers, achieving improved service levels, and securing more favorable contract terms. These engagements enhance the quality and reliability of the services received and provide leverage in financial negotiations, which can significantly reduce overall costs.

A strategic approach to managing SaaS costs includes regular evaluations of the software portfolio to identify and eliminate redundant applications. This streamlines the tech stack and prevents financial waste, ensuring that every dollar spent contributes to the organization’s operational efficacy and strategic objectives. Companies can maximize their SaaS utility by integrating these cost-optimization strategies while maintaining a lean and effective digital infrastructure.

Achieving SaaS Value With Savvy

Effective SaaS management is essential for controlling costs, maintaining security, and ensuring smooth operations. Organizations can mitigate risks, enhance productivity, and achieve better ROI from their SaaS investments by addressing the hidden costs associated with unmanaged SaaS accounts.

Savvy offers a comprehensive SaaS management solution designed to address these challenges. With features like comprehensive visibility, automated security, and no-code automation, Savvy helps organizations manage their SaaS apps efficiently. By choosing Savvy, you can ensure that your organization remains secure, compliant, and financially efficient in managing its SaaS ecosystem.

This article originally appeared on savvy.security .