Mastering SaaS Management and Spend Optimization

SaaS applications make up 70% of total company software use. And these numbers are expected to grow as more and more businesses are looking to scale in a cost effective way.?

However the real challenge is managing these subscriptions. It becomes difficult to keep a tab of active subscriptions, renewals, upgrades, data security, and privacy.

And before you know it, your SaaS expenses get out of hand.?

This article delves into strategies for taking control of spending, tracking usage, and harnessing the full potential of your SaaS tools.

How to Master SaaS Management and Spend Optimization

Looking for ways to master SaaS app management and optimize your spending? Below are some expert tips for you:?

1. Assess your SaaS Landscape

The first step is to gain a comprehensive understanding of your SaaS landscape. It involves two things: tracking inventory and evaluating utilization.

Start by creating a complete list of all the SaaS subscriptions that your company uses. Now, categorize them on the basis of importance to prioritize optimization efforts and identify areas with potentially high-cost savings.

Next, assess the utilization of these SaaS subscriptions with the help of engagement data provided by SaaS applications or through dedicated monitoring tools. Pay attention to key metrics like active users, frequency of use, or popular features.

A thorough assessment of your SaaS landscape can help you:?

• Eliminate unused or redundant subscriptions.
• Right-size existing subscriptions and adjust the license count based on actual usage.
• Negotiate better pricing with vendors.
• Make informed decisions about future SaaS investments.

2. Create a Subscription Management Strategy

While SaaS tools offer flexibility and scalability, failing to manage them can skyrocket costs. Thus, having centralized control over your subscription is important. Infact, 50% of organizations that use multiple SaaS applications think of centralizing them for management.?

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Tools like LivLyt help consolidate all your subscriptions into a single dashboard, offering you a holistic view of your licenses, usage, spending, renewal dates, and more. Having a centralized view helps you make informed decisions regarding your SaaS spending.

But that’s only one part of the story. To truly manage and optimize your SaaS spending, you need to establish clear policies and processes around subscriptions.

Here are a few ways in which you can achieve this:

• Outlining who is authorized to approve new subscriptions, spending limits for different departments or projects, and preferred vendors. This will help ensure responsible and cost-conscious decisions.
• Creating a streamlined workflow for approving new subscriptions.?
• Setting clear budget limitations for different teams or departments for better cost control and preventing overspending on SaaS solutions.

3. Spend Optimization Techniques

Negotiating with vendors can help you make the most of your SaaS investment. But it’s important to conduct periodic reviews of your SaaS subscriptions. Aim for reviews every 12–18 months, or before each renewal period.

Consider the following points to negotiate better from a position of knowledge:

• Are you using all the features you're paying for? Has your team size changed?
• Research new vendors and compare features, pricing models, and customer reviews.
• Are you satisfied with the support, security, and feature updates provided?

Long-term commitments often offer discounted pricing but negotiate for favorable terms like flexibility in scaling licenses, early termination clauses for unforeseen circumstances, or guaranteed service-level agreements (SLAs).

Compare the long-term discounted rate against yearly or even monthly subscriptions. Also, consider the potential usage fluctuations and the ease of switching vendors if the situation demands it.

4. Monitoring and Tracking

Continuously collect and analyze data on your SaaS applications to make informed decisions for both optimization and security.

Invest in tools like LivLyt that easily integrate with your SaaS applications and provide real-time usage data. These insights can include user activity, feature adoption, and potential over- or under-utilization.

You should also configure alerts for suspicious activities within your SaaS applications. These alerts will keep you informed about unusual login attempts, data access patterns, and storage spikes. Promptly act on these alerts and mitigate the associated risk.

Also, conducting regular audits will help ensure compliance with vendor licenses and internal security policies. This will further minimize the risk of data breaches and regulatory non-compliance.

5. Employee Training and Communication

Educating your team to make smart choices regarding SaaS usage and optimization is important for effective SaaS management.

Conduct regular employee training sessions covering:

• SaaS lifecycle management: onboarding, provisioning, optimization, and sunsetting processes
• SaaS costs: pricing models, hidden fees, and cost-saving strategies
• Best practices: responsible use, avoiding unnecessary subscriptions, and utilizing alternative free or open-source options

Highlight the financial impact of responsible SaaS management, encourage open dialogue around cost concerns, and empower employees to inquire about cost-effective alternatives.

Also, actively seek employee feedback about their SaaS experience. Address immediate concerns through alternative tools, negotiating better pricing, or implementing new support mechanisms.?

Demonstrate a commitment that you understand user preferences and incorporate them into future SaaS decision-making.

Now Optimize and Manage SaaS Spends with Livlyt!

Optimizing and managing your SaaS spend goes beyond mere cost savings. It allows you to make the most of your SaaS investments, control your software budget, and drive efficiency across the organization. But it’s easier said than done. Stats reveal that 53% of SaaS licenses go unused while companies use over 300 SaaS apps on average.?

However, leveraging SaaS management tools like Livlyt can help you centralize your apps, track usage, and optimize your SaaS spending. You gain clear insights into app usage across teams and users, identify inactive licenses, and manage renewals—all from a user-friendly dashboard. Livlyt integrates seamlessly with popular tools like GSuite, Microsoft, and Slack, making it easy to get started.?

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Try Livlyt today!