SaaS contract management could save 30% of your application spend, according to a Gartner study. Discover how you can cut your IT budget and increase efficiency during economic stress, when every cent matters.
Software-as-a-service (SaaS) contract management is becoming a major concern for IT leaders. With budgets tightening in line with global economic turmoil, it's damning that Gartner reports most organizations could save up to 30% on SaaS spend with better license management.
The current key phrase across all industries is 'do more with less', so any budget reduction is welcome. It's hard to ignore the potential to cut back on the spend allocated to these essential workplace tools, but how do you find that 30% saving?
Let's briefly cover why SaaS applications are so important before delving into what best-practice SaaS contract management entails and how it can save you money.
The SaaS Revolution
The concept of Software-as-a-Service (SaaS) has been a revolution for enterprise. No longer do companies need to develop their own workplace tools or integrate instances of software monoliths into an overburdened, on-premise tech stack.
Instead, workplace toolsets are now comprised of micro-services - single-purpose, third-party SaaS applications that can be accessed through the internet. This allows employees to choose the tool that best serves their working style and reduces IT workload dramatically.
In addition, specialist companies with ground-level expertise are able to develop best-of-breed software for specific use cases. Companies don't have to invest in Swiss Army Knife platforms that do everything, but nothing very well.
The Dark Side Of SaaS
So SaaS is good, but with employees empowered to find and purchase valuable tools, oversight has been lost. With everyone buying whatever applications they need without the need for authorization, our customers are finding their portfolios full of:
- duplicate contracts
- security vulnerabilities
- missed contract renewal payments
- overspend on unused applications
- applications that aren't best-of-breed
Nobody wants to go back to the days when IT had to manually source, approve, and install every workplace tool used throughout an organization. So, what's the alternative?
SaaS Contract Management
Software-as-a-Service (SaaS) contract management platforms are tools that standardize and support the process of SaaS contract management with automation. This empowers SaaS managers to administrate, monitor, and negotiate SaaS contracts through a single interface to streamline expenditure and optimize value.
With LeanIX, for example, you can track contracts, and assign ownership for each application. In the platform, you can align stakeholders for contract negotiations, receive notifications about contract renewal dates, and ensure compliance with contract terms.
The platform tracks, records, and analyzes SaaS contracts throughout each part of their lifecycle:
- Procurement
- Negotiation
- Implementation
- Renewal
- Termination
Of course, most companies track contracts in spreadsheets and manual systems, but once again according to Gartner, 43% of organizations are unable to readily locate their stored contracts. Further, they lack budget information and details of who actually uses the application.
LeanIX automatically builds an application inventory and provides:
- contract details
- current spend
- forecast spend
- renewal alerts
- usage information
With a complete list of all the information about your SaaS applications mapped across all the stages of their lifecycle, SaaS contract management becomes simple. Why is that so important, though?
The Value Of SaaS Contract Management
Software-as-a-Service (SaaS) contract management platforms help you navigate the often-complex renewal models of a large SaaS application portfolio with ease. This is crucial for achieving the value the SaaS revolution offered companies without drowning in the complexity of the new model.
Using the LeanIX platform, you'll be empowered to:
1 Shine A Light On Hidden SaaS Spend
Automatically gather intelligence on your entire SaaS portfolio, including applications you hadn't authorized. LeanIX connects to any API, including your procurement and single sign-on systems, to find all the tools your organization is using and how much it's costing you.
2 Optimize Your Portfolio
Remove duplicate licenses, cancel unused subscriptions, and upgrade essential SaaS applications to premium options. Get the most out of your SaaS application portfolio for the lowest cost.
3 Improve Flexibility
Scale your SaaS application portfolio up or down as circumstances demand from one dashboard. During tough times, cut back on nice-to-have SaaS licenses; but when resources are plentiful, you can empower your team with premium tools.
4 Ensure compliance
With full oversight, you can ensure that the use of SaaS solutions in your organization is compliant with the contact terms. You can also standardize the renewal process with clear roles and responsibilities.
5 Reduce operational costs
Most of all, removing inefficiencies in your SaaS portfolio and optimizing contracts will ensure you're only spending what you need to. LeanIX can even offer valuable information to your infosec and procurement teams.
Improve Your Bottom Line With LeanIX
The LeanIX platform is the most efficient way to streamline and manage your SaaS contracts, optimize your cloud spend, and stay in control of your data.
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