SaaS License Subscription and Contract Management for the Enterprise
With the complexity of today’s business environments, software is being utilized at a rapid speed throughout organizations. Employees, from literally every department, can find beneficial tools that work best for their needs and can easily solve their problems at hand. Hardware is no longer an obstacle for adoption. Now, teams have the liberty to choose which solutions they want to use without worrying about about lengthy internal approval processes or restrictions.
In any organization, the experts who worked in the IT Department were always the only ones in charge of technology and how hardware and software was managed. With one centralized location, there was never a concern about security breaches or lack of control. The IT team could easily ensure the safety of the company’s management tools, all while monitoring and controlling budgets and vendors across all functions throughout the entire organization. Today, this is certainly not the norm.
Nowadays, most departments select their own software management tools and control their own technology budgets. There is much less hardware being purchased and the network is far less technical. Those centralized IT experts, who we couldn’t run an organization without, are no longer the vital cornerstone of a company’s ultimate success.
SaaS License Enterprise Management Challenges
The proliferation of SaaS applications dictate how businesses are spending their money on point solutions. While this growth is positive for a company’s diversity, it can also cause an internal disconnection, creating a silo mentality where departments are reluctant to share information with each other.
There is also the issue of adding complexity to workflows. Businesses are having to deal with connecting to API’s with no single platform to get a deep understanding of their SaaS environment. This prevents them from managing it the way they should. Oftentimes, these software management tools do not integrate with each other, causing inefficiencies with the overall licensing process.
As companies move to SaaS subscription models it is imperative to have a data management platform to centrally manage your enterprise cloud applications. Being able to visually see your Enterprise SaaS licensing from a single dashboard is just the start in building a solid infrastructure to gain insights into employee SaaS usage and utilization and overall spend. Having this data starts to shed light on where you need to focus your efforts.
With an abundance of contracts coming due for renewal each month, even the most efficient IT or procurement professional will experience frustration with these internal customized applications that do not meet current standards. This leaves a company vulnerable to security risks and compliance issues. Software license management needs to be re-aligned due to SaaS sprawl causing inefficiencies across the enterprise.
SaaS License Contract and Renewal Management
Current IT software licence management tools were not developed to handle the proliferation of SaaS subscription licensing. With SaaS compliance and security risk that comes with cloud based applications, organizations need to be aware of these pitfalls.
With that said, IT contract management tools oftentimes do not deliver the results that they should. Given the increasing number of users and different cloud apps throughout an organization, this can be extremely problematic. Tools, inclusive of in-house custom applications such as excel spreadsheets, lack automation features like notifications, proactive alerts, quoting capabilities and inevitably entail manual intervention.
These rudimentary systems tend to prevent users from being able to have a complete view of their business’ renewal pipeline. Since renewal management is such an important component within an organization, this can be problematic when it comes to revenue and overall profitability. Inputted data is often incomplete, resulting in inefficient reporting and poor visibility into upcoming opportunities, resulting in a sub-par renewal strategy.
SaaS Budgeting and Forecasting
While it is very evident that there is a value and a need to invest in SaaS, competing tools that do the same function can be a big issue and inadvertently lead to wasted budget dollars, creating a guessing game when forecast meetings come up. The success of a company is contingent on whether or not upper management has a clear and concise depiction of where money is being spent in their organization and by whom. It is important to know if there is a return on the invested software applications with corporate-wide adoption.
While departments are tasked with the roll-out and adoption of their Enterprise SaaS application spend, most are just focused on completing their day to day tasks. Department managers are so busy that license optimization and renewal management are rarely at the top of their list.
Traditionally, IT has always managed this function, however, in the modern day workplace, this has gone by the wayside. This inevitable leads to budgets being wasted on under-utilized or unused licensing. Under-utilized licenses could be a result of insufficient internal adoption, where there was a lack of focus on corporate training, resulting in not achieving the ROI expected at the time of investment. Attaining visibility into your enterprise SaaS license utilization by department, by user, makes SaaS budgeting and forecasting a science instead of a guessing game.
SaaS Application Security and Compliance Risk
Company compliance mandates, such as SOC 2, requires you to have strong SaaS license management protocols in place. This is important so you know who is accessing which parts of your systems, as well as the type of data being used, and when and why it is being used. At a minimum, your company should know which cloud apps are in use and the type of internal data sources these apps have access to.
Concerns over Shadow IT are growing as organizations consume more and more SaaS applications. This subjects companies to security risks, compliance issues and hidden SaaS costs that are unaccounted for. To mitigate the consequences of Shadow IT, technology leaders require a SaaS license system of record for enterprise license management.
SaaS Business Intelligence and Predictive Analytics
Today’s technology providers grapple with the negative effects of an over-abundance of data. They are looking to Business Intelligence (BI) systems to help streamline their approach and capture wasted and underutilized SaaS licenses in their enterprise. BI applications do not simply track upcoming SaaS contract renewals and subscriptions, but give organizations a more holistic view of their SaaS install base.
With our SaaS license platform, companies can begin to not only manage their SaaS License subscriptions and contracts, while mitigating SaaS security risks and compliance. By having visibility into SaaS utilization and application adoption, one can determine their return-on-investment and ultimately will have the ability to do predictive analytics to accurately forecast budgets. Schedule a demo of SaaSLicense today!