How to Start SaaS Management with Best Advantages 2023

SaaS management services have become a necessity for small business owners who handle multiple tasks on a daily basis. SaaS stands for software as a service, and it refers to programs that can be accessed remotely via the internet by users with access credentials.

In this guide, we have given a brief introduction to the five key advantages offered by SaaS software for managing your business. If you’re looking for a way to streamline your business, then SaaS is an excellent solution.

SaaS management is a challenging task, but it doesn’t have to be overwhelming. Even if you are new to SaaS management, take heart! This beginner’s guide will help you learn the basics of SaaS management so that you can move forward confidently.

While the level of success varies, most aspiring business owners dream about creating their own software product. It’s an exciting venture, but it’s also a challenging one. In addition to building the actual product, you’ll have to figure out how to get customers and market your business too.

Software as a Service (SaaS) is the software distribution model where all of the application is hosted by an external service provider. The hosting, maintenance and upgrades for SaaS are done by the cloud provider and do not need any effort from your side.

If you want to know about advantages of SaaS over traditional Software, then read through this blog to know more.

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SaaS management has a lot of advantages that you can enjoy as a small business owner. If you’re looking for better ways to handle the growth of your company, then this guide is for you. Learn about these advantages and more to help you make an informed decision when choosing a cloud service provider.

SaaS developed from the growing demand for centralized computing during the industrial revolution. Salesforce’s “The End of Software” campaign in 2000 as well as Concur’s reluctance to the use of CD-ROM and floppy disks production ushered in a new universe of apps that could be accessed through the internet.

This led to a boom in cloud computing that is accessible to the average user and low-cost web-based business licensing models. As we’ve seen disruptive innovations can bring chaos and difficulty, along with the growth of productivity and efficiency.

What is SaaS Management?

SaaS Management (SM) is all the necessary processes to effectively scale cloud-based software expand businesses’ strategic goals and meet the needs of users while adhering to the privacy and security standards for data.

As opposed to using spreadsheets in managing SaaS apps, the SaaS Management platform makes use of advanced methods, e.g. integrations with HR, ERP expense and contract systems, SSOs straight SaaS integrations, scanning of emails or web traffic monitoring.

Many, SM adapts those processes that were previously used to manage perpetual on-premise software, and adapts them to accommodate the needs in the model of subscription.

In the event that the existing ITAM as well as SAM tools fail to meet the requirements for the full-scale SaaS management new platforms developed by several specialist vendors can simplify the SaaS system management process.

It allows finance, IT and security managers to make more informed and quicker decision-making. This results in a cost-effective and secure business.

What Kind of Challenges Will SaaS Growth Pose to Businesses?

Accessibility, high adoption rate, lower costs, easy upgrades, and smooth integrations are the initial SaaS benefits. Once organizations subscribe to hundreds of SaaS vendors and implement multiple instances & licenses, the original promise of SaaS can quickly deteriorate.

The challenges that growing SaaS portfolios can bring include:

  • Inefficient use of funds on services that overlap and licenses that are not used up as well as expensive vendors
  • Increased service and user lifecycle management time
  • Hundreds of renewals to manage
  • Fail SaaS implementations
  • Unmanaged SaaS applications – Shadow IT

A lot of companies focus on the shift into “cloud-first”. But, they are faced with another issue: the lack of access and control after SaaS takes over their business.

Why Should Organizations Use SaaS Management?

This is a problem because we’ve never been taught to manage and control SaaS subscriptions. In addition, the majority of organizations depend on inadequate CMP and direct analytics from vendors. SaaS isn’t software that is on-prem, and therefore it’s not an ordinary IT Asset.

Apart from the SaaS issues mentioned earlier Software vendors are constantly developing innovative technologies, pricing structures and features that feed the desire of cloud-centric companies, LeanIX expects even more impressive SaaS adoption over the coming years. In the meantime, Gartner2 expects 85% of companies to be “cloud-first” by 2025.

Departments and employees love to purchase new SaaS technologies due to the fact that it’s speedy and simple, as well as allowing employees to boost their productivity when they’re in demand of outcomes. So, it’s not a surprise that the average employee utilizes 443 SaaS applications to complete their work.


Excel spreadsheets and organizations can’t keep up with SaaS expansion. Let the numbers tell it:

  • Enterprises could be wasting as much as 30 percent of SaaS spending.
  • The annual SaaS expenditure per employee is over $13k3.
  • The average 800-person US firm uses 1413 SaaS applications across the entire organization.

SaaS buying has become simple and decentralized. It is more in the hands of the top authorities than it ought to be.

Best Advantages of SaaS Management

The 5 greatest advantages of making use of SaaS Management to manage SaaS systems in an organization are:

#1. Transparency into your SaaS estate

SaaS Management provides a comprehensive view of SaaS subscriptions and user licenses, as well as the attribution of ownership, renewals, contracts and expenditures, and collects crucial usage information that allows informed decisions regarding renewals and investments in the future.

The benefit of SaaS is that when 30% of subscriptions remain unutilized which gives companies the choice for not to renew, or renew SaaS contracts during the next contract term. Visibility was the very first scenario that was explored through SaaS Management platforms, and it’s still the most popular.

#2. SaaS spend optimization–Increase SaaS ROI

SaaS Managers can utilize the usage information that their tools collect to assess whether companies benefit through SaaS investments. SM platform and SaaS spend optimization methods permit them to get rid of the excess licenses, vendors and redundant software that isn’t needed.

SM insights are utilized to boost discount rates, e.g. through the consolidation of multiple Salesforce instances or contracts, or to make savings available during the process of submitting bids for exclusiveness, making use of Webex, Zoom, GoToMeeting as well as Skype for video conference.

#3. Removal of security gaps and a sense of security

First, SaaS management removes SaaS security threats by preventing shadow IT. Integrations enable tracking of software purchases that are made across departmentsYi even if they’re purchased using Corporate credit cards.

Additionally, access to the sensitive data is protected by automatic identification and deprovisioning permissions to employees who have quit the organization.

The full SaaS visibility helps leaders determine SaaS suppliersthat meet the requirements of the organization’s policies and assure compliance with regulations like SOC2, GDPR and many more.

SaaS Management enables organizations to take control of the risks to their business by gaining insights.


#4. Efficiency of operations

Constant SaaS growing stack could mean that that teams are faced with multiple renewals each week to deal with. SM can cut down time by storing all renewal details in one place: ownership details, usage data as well as the contract’s value and dates for renewal (renewals Calendar).

HR, Finance IT analysts, as well as Finance can switch from an proactive to active in the event that they know what time renewals have to be made, and respond to questions, for example:

  • What is the software a salesperson will require to begin working?
  • How much software does each person in the marketing department cost? What is the departmental expense?
  • What will our software’s cost fall after an employee is gone?

Offboarding and onboarding for employees takes long, especially when the full SaaS portfolio is not known. SM data accelerates identification of the exact applications the person who is leaving registered for and also automates the process of IT request to ensure that employees have access to the right software to complete their work efficiently and without putting a burden for IT resource.

#5. Satisfaction of employees

This SaaS Management platform enables users to see the value of SaaS corporate investments and assures that employees get the most value from these investments.

It gives an insight into whether or not users are embracing the latest methods and helps identify areas that education or an internal communications campaign might be helpful. SM achieves this by providing precise tracking of what features are used by what users.

The self-service application portal within SM allows users to access the tools they require to accomplish their work by utilizing a secure and authorized workflow.

Let’s look at how these benefits can be realized with the SaaS-based management platform.

How Can This SaaS Management Platform Help?

SaaS management platforms allow for the ability to programmatically discover the type of SaaS is being used as well as who owns it and what the business has to pay by means of many Integrations.

These insights are helpful in capturing and keeping records however, they also show that SaaS provides the ROI it’s supposed to. It is possible for companies to create an organization of records that records the different features of every tool.

SaaS portfolio discovery provides the data elements every tool contains:

  • The total quantity of SaaS applications
  • The total number of seats, licenses Users, seats
  • Spending per application
  • Total expenditure (with an anticipated annual and monthly expenditure)
  • Compliance and security profile
  • Owner of the application
  • Application category
  • The type of purchase (expensed as opposed to. AP)
  • SaaS renewal dates and contract conditions (SaaS renewal calendar)

Discovery is a way to identify issues of confusion about SaaS ownership. Enterprises face difficulties trying to create a renewal argument in the event that there isn’t any budget manager or champion. The clarification of ownership can help in establishing accountability for the adoption of utilization and performance benchmarks.

With SaaS Inventory analysis IT, Finance, and InfoSec executives shift from a an active to a reactive approach because they are able to:

  • Get rid of services that are redundant
  • Eliminate licenses that are not needed
  • Find out how to negotiate with vendors who are overpriced.
  • Manage applications that are not managed — shadow IT
  • Track SaaS vendors compliance
  • Plan for renewals
  • Forecast and budget accurately SaaS spending

Programmmatic SaaS exploration of SaaS applications is the most efficient method to manage SaaS expansion.

How to Start with SaaS Management

You know your business and which areas are noticeably undisciplined–likely losing money or failing to generate a return from their investments.

The market for SaaS management tools available is growing , and each has its own distinct features, so it is essential to understand how to start:

#1. Build a buy-in

Determining the SaaS Management business case is essential to achieving success. When you understand the goals you’re trying to reach and why you’re doing it, you’ll be able to secure the needed support. LeanIX recommends aligning your internal views to:

  • Designate ownership teams that have a cross-functional perspective and strong relationships
  • Develop a clear and concise vision to SaaS Management, including priority results
  • Accept a comprehensive method of SM. This means controlling SaaS by approving, acquisition use, renewal or retirement
  • Establish connections and plan collaboration with the functional SM stakeholder
  • Find out the experience owners (e.g., FP&A or IT) and allocate the necessary human capital to manage
  • Review SM platforms and choose an industry-expert vendor and a dedicated team of support

#2. Collect requirements and set goals

Stakeholders require shared goals. This starts with setting expectations on the top level which flows throughout the organization. The definition of these objects is a series of experiences that are collaborative. Stakeholders who are interested (ideally and with different levels of experience) can collaborate to talk about possibilities for the company to enhance. Project managers can then implement these strategies in a tactical manner.

C-level executives should be discussing the most pressing problems, including risks and compliance, value-creation, employee engagement, or cost reduction. These can be addressed in a way that is prioritized, measured and assigned specific targets. A task force comprised of HR, finance, IT and security managers could then be entrusted with the task of evaluating SM platforms and create the implementation plan.

#3. Explore platform differences and vendors

SaaS Management marketplace features a variety of new platforms that work within both startups as well as Fortune 100 companies. The capabilities of the platforms differ, however, LeanIX observes that the platforms’ ability to support the benefits mentioned earlier differs.

#4. Ask questions to help identify the best-fit

Understanding the capabilities of platforms is crucial for determining the right solution. Platforms are often similar, but companies emphasize different capabilities or functions, and they prioritize particular business-related drivers for example, visibility, in a different way.

Below, we’ve compiled examples of vendor discussion topics. Check these topics with respect to your company’s goals when conducting an SM evaluation of the platform:

  • The key to unlocking visibility and discovery
  • Realizing value delivery
  • Improving risk management
  • Aiding in the improvement of the operational efficiency

#5. Deployment Timeline

Although the time to deploy varies depending on the complexity of the project the typical enterprise has platforms that run for between four and six weeks following the contract has been signed.

To ensure a speedy onboarding and an overall company-wide agreement on the issues SM is aiming to solve assign internal resources for this project, collect the input data for SaaS estate, and share documents about any previous attempts to resolve SM.


However mature your SaaS management procedures are-ranging from reasonably defined to not even being in existence-it’s time to increase control.

Smart companies are shifting in masse towards SaaS Management to restore both the benefits of cloud-based applications and to alleviate the crippling security and compliance concerns. The value and the sense of urgency to build an agile digital company are obvious.

By now, you have learned the five best advantages of SaaS management. We also provided you with some ways to implement these features into your daily workflows. If there is anything else we can do for you, please let us know by liking or commenting on this article or following our blog today.

SaaS is a great way to manage your applications, and it has many advantages. Some of the biggest advantages include scalability for growing businesses, convenience for remote users, and efficiency when implementing changes.

Questions Frequently Asked Regarding SaaS Management

What is SaaS Management?

SaaS Management (SM) is all the necessary processes to scale up cloud services efficiently and extend business’ strategic goals and accommodate demands of customers while maintaining privacy and data security standards.

How long will it take to set up SaaS Management?

SaaS Management deployment times vary dependent on the level of complexity of the project. companies typically have a platform that is operational for between four and six weeks following the signing of the contract.

Can I utilize SaaS Management instead of other system for asset management (ITAM SAM)?

If you are a company that only uses SaaS applications it is an essential discipline that will allow you to run a successful and secure company, as SaaS Management is the only discipline specifically focused on SaaS. 
For those companies that use SaaS but only in part the presence of an existing ITAM or SAM system is an excellent base to begin to achieve some SaaS use and visibility. So, SaaS Management is a compliment to your current procedures.

Who do you think SaaS Management for?

SaaS Management is a must-have for businesses and their leaders who want to gain valuable insights into your SaaS estate. Our most frequent users are IT as well as finance and security leaders who are now able to assist and work with SAM HR, procurement project manager, as well as business system teams by obtaining accurate data in the same place.

How can I tell whether SaaS Management is right for me?

If you’re looking to create an a proactive and effective approach to controlling business and planning in an organization that utilizes SaaS apps, SaaS Management proves to be the perfect fit.

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