With the accelerated drive and demand for more apps and tools, managing software services is becoming increasingly necessary. Software as a service (SaaS) management goes beyond knowing which apps and software being used across a company’s platform. SaaS management is having a complete record and inventory of all apps and licenses, users and vendors, staying on top of security, data, and compliance issues within a company’s technology portfolio of software services.

SaaS management can either be a company’s competitive advantage or its Achilles heel.

Defining SaaS

Service as a software enables users to connect to a cloud and use services and applications, usually via the internet.

Examples of such commonly used services include email, office tools use as Microsoft, and calendaring. Many are pay-as-you-go services where apps are purchased on an individual basis or as an organization. Additional appeal to SaaS products is that application providers manage infrastructure, app software, updates, data, and security, which is appealing to IT managers and finance departments alike. SaaS allows customers and companies to access valuable resources without the high overhead that used to involve juggling physical products and appropriate infrastructure.

Software requirements can be scaled according to project needs and demands, increasing and decreasing as necessary, keeping everyone in the same loop regardless of the scale and scope of the company. Software as a service is an attractive avenue for businesses, especially small businesses, who seek to cut IT costs and responsibilities and get the most value out of products that they purchase.

Benefits of Software as a Service

  1. Easy to Obtain: Companies do not need to rely on physical devices needing to be obtained and then distributed. Neither do companies need to build servers, install and configure applications. Software features and upgrades are easier than ever to deploy across a company through cloud-based software and services.
  2. Streamlined Use: With centralized supervising, companies can monitor and maintain use and give access to many people without installing each component on individual devices. Online access makes this process easy and efficient for both the employer and the employee.
  3. Lower cost: Because there are not physical products to procure and distribute, the cost is lower and easily scalable according to consumers’ needs. The consumer only pays for what they need when they need it.
  4. Managed Apps: The app owner manages and maintains the application and deals with updates and upgrades rather than the company buying new software on an ongoing basis. All infrastructure, hardware, and software are located in the service provider’s data center rather than induvial places of business, eliminating intensive in-house IT departments and specialized technicians
  5. Quick and Ready to Use: Often setting up applications and software is a ready-to-go process with a download that can be up and running in little to no time. In addition, cloud-based services usually only require a subscription according to the level of use and giving access to the people and departments that need access
  6. User Friendly: Many SaaS tools are built with the consumer in mind rather than depending on IT teams to implement programs. As a result, most SaaS programs do not require software-specific training or special expertise to integrate and mobilize, making the software more accessible to a wider variety of people and organizations
  7. Easily Scalable: Expansion of use is often as easy as choosing an adequate plan based on the project’s needs and the people at hand. As projects and people come and go, SaaS can be added or removed by changing the plan with the provider
  8. Ease of Integration: SaaS makes it easy to get an entire workforce onboard and working together through internet-based computers and mobile devices. The cloud-based services ensure that anyone with an internet connection and proper security can access information as they need, making remote access more manageable than ever before

Challenges of Software as a Service

With the average company having 1,295 cloud services, over 100 different software services (Netskope), and an average of 10 new SaaS applications added to the average company portfolio every month, companies face increased challenges in staying up to date with all the software and apps that are in use within a department, business or organization. Additionally, integrating software between departments and across a company’s workforce can cause confusion and disruption when everyone is not on the same page and uses different software and apps.

While SaaS solves many pain points in a company, the variety of such an extensive range of software gives rise to complexity and complications as different people and departments prefer different software services. While SaaS tools and platforms increase flexibility, cost-efficiency, and scalability (BMGH), they bring many problems if not managed correctly.

Unmanaged Saas can lead to problems with security and compliance, and increased spending as users lose track of how many and which SaaS are in use, not to mention shadow IT lurking in the background, unnoticed and unused. Having a complete inventory and maintaining an accurate scope of software, tools, and programs can be difficult, leading to confusion and chaos.

#1 SaaS Security

Identity and access management can become a headache as users and vendors ebb and flow in a business or organization. As a result, sensitive data can be at risk when users are not managed correctly and securely. Getting the right people the proper access can create a web of complications when there is no efficient and streamlined process for access and software permissions.

Also at stake are security concerns within the company. Being able to properly onboard and offboard employees and vendors becomes complicated when a vast web of software is used. Adding and removing SaaS tools to and from a company’s interface increases the risks of data and security breaches, cyberattacks, lawsuits, and more, putting critical operations at risk.

#2 SaaS Compliance

An average of nearly $4 million is spent in litigation costs and lost business due to data breaches. Keeping track of licenses and proper usage is a nightmare when all it takes is a simple login and password to share cloud assess to software illegally, leading to those costly and unfortunate data breaches. In addition, specific software may not have the correct permissions and components allowed to be used across the entire work environment, causing internal complications within the company and within the use of the software.

#3 SaaS Spending

38% of all SaaS licenses go unused (Zylo) because of inactive users or redundant applications, while 30% are underutilized or unused. Software tools and programs that share similar and even duplicate services can add to the financial burden quickly. Though some apps and software have low or minimal costs, finances can become burdened through automatic renewals that are unplanned and untracked.

#4 Variety of SaaS Across a Company

As teams add and change apps depending on what they need or what is new on the market, shadow IT can creep into a company’s workforce. Shadow IT occurs when applications are brought in without the IT department’s knowledge or approval. According to Zylo, more than 50% of software is acquired outside of IT (Zylo). A combination of tools can be beneficial until it overlaps other tools and platforms which can cause an unnecessary pile of applications and software, and finances. When there is no one-tool-fits-all, apps accumulate as users seek the right tool for the right job.

#5 Access to SaaS

Different team members need access to a diverse variety of tools and programs. For example, one employee may need a dozen various applications; another may only need three or four. It is not cost-effective to provide all of a company’s acquired software services to all employees. It can become time-consuming and confusing to manually and individually connect the right employees with the appropriate apps and technicians. In addition, ensuring that the right people have the proper access can become confusing and can cause potential risks of data breaches and unauthorized access.

All this can leads to added complications for IT departments and whoever is managing who can use what, when, and how.

Problems Solved by SaaS Management

When there is already a pile of apps in use, no one needs something else to add to the list of things to manage.

SaaS management puts all the information, needs, and demands in one place by efficiently and effectively evaluating the essential apps from apps that need to be weeded from the arsenal of software that may be lurking in the background. Additionally, SaaS management takes control of users and vendors, security, spending, and license management.

#1 Streamlined Onboarding

By streamlining and automating an onboarding process, employers and employees have confidence in the company’s security and compliance.

Companies that invest in SaaS management have access to tools that allow for repeatable and rote onboarding that provides for little human direct involvement, which can be managed and maintained more effectively by IT and security teams. This management and streamlined process reduce stress and fiction points, adding to a safer and more secure system for the company and customers alike.

Secure onboarding reduces confusion by having automated responsibilities and expectations for security that come with these software tools and programs by building a culture of compliance and security, where expectations and responsibility are established and maintained by all involved.

#2 Secure Offboarding

Just as employees must have a secure and appropriate onboarding process to gain access to SaaS, offboarding employees and vendors must be just as secure of a process. If a company’s SaaS management is in chaos, the offboarding process can be scattered across a wide range of applications and software, with things being missed or overlooked. As a result, security and data can slip through the cracks leading to security breaches, data breaches, unauthorized access, and customer and company data and information threats.

If there are no clear protocols or adequate inventory in place, privileged information can be left vulnerable to unauthorized access leaving a company vulnerable to lawsuits and other attacks.

#3 Shadow IT Reduced

With SaaS management, shadow IT decreases as all applications and programs are visible and discoverable. By having a central hub of information, IT and finance departments are aware of all applications and software used across the entire company, rather than wrestling information and accounting from individuals or individual departments. SaaS is not able to sneak in as easily with proper management in place.

#4 Improves Collaboration

As a company has a comprehensive view of all the software and apps in use, teams can create and maintain a foundation for sharing and reporting information. Everyone can be on the same page as there is visibility as to who is using what SaaS, which makes cooperative information sharing and team projects less about technical problems and software conversion and more about getting the job done.

#5 Spending

With the visibility of all SaaS in use, decisions are made through data-driven insights. Ineffective or unused applications, as well as redundant or duplicate applications, can be eliminated. Though many low-cost applications are appealing, their automatic renewals can create unplanned and untracked spending. Visibility and analysis of all SaaS optimize spending and value by gaining insight into who is spending money and evaluating how much value each application brings to the organization. SaaS management can see how applications are being used by gaining a complete picture by knowing who uses what and then make informed decisions regarding value and cost.

What to Look for in SaaS Management

SaaS management should ease complications, not add to them.

Management should not be one more thing that a company needs to keep track of; instead, it is the hub of information that gathers all the pieces into one solid picture. A good Saas management program should build and maintain a process that streamlines SaaS apps with a centralized platform that enables a general and detailed inventory and record of all methods in use.

Vital Features in Choosing a SaaS Management Program

  • Employee Onboarding and Offboarding: SaaS Management should provide automated processes that are structured and scalable with straightforward standard operations for everyone involved. Security should ever be compromised in the onboarding and offboarding process.
  • Track Software Spending and Usage: A complete inventory needs to be made of all software in use so that there is a complete and comprehensive overview of all SaaS in use. Then, with the correct data on hand, critical assessments and evaluations can optimize which tools and programs are essential and which are unnecessary
  • SaaS Compliance and Security: SaaS management can give a detailed record of all licenses by tracking all permissions and authentications. Managing licenses is crucial to keep from mismanaging and illegally applying applications. In addition, it ensures that there is clear attribution of ownership to the right teams and employees. Active management keeps unused licenses from posing a security threat while being attentive to underutilized licenses, keeping the SaaS investment’s practical value in mind. By being aware of all Saas applications, a management program can ensure that the correct licenses are being utilized and match the company’s actual needs while protecting security and finances. When SaaS application renewals approach, good management will have the information at hand to properly evaluate the effectiveness of SaaS tools and programs as to cost, user experience, and business needs, among other factors.
  • SaaS Retirement: When apps are deemed unnecessary, it is essential to have an offboarding process for the software applications. There should be plans and procedures that ensure company and customer data is removed from those applications that protect the company and customers alike. Proper management provides limited service disruption as apps are added and removed by being aware of apps that replace the outdoing software.

The world of software as a service use will continue to grow as the business world moves more and more to a digital platform. As more competitive and attractive services are available, there will only continue to be a rise in the amount of software as a service that finds its way into the computers and devices of businesses, companies, and organizations.

In the coming years, as SaaS grows exponentially, organizations must stay ahead of the curve by proactively and aggressively being on top of problems the large variety of SaaS creates and have programs and management to deal with the influx of such valuable tools in their arsenal. In this way, organizations can maximize the value and efficiency that software as a service offers and get the most out of their products.

SaaS management is the key to unlocking those rewards and having a competitive edge over those who let SaaS run wild and free.

References

GmbH, L. (n.d.). SaaS management – The definitive guide for IT and finance leaders | eBook. EA and Cloud Governance | LeanIX. leanix.net/en/download/saas-management-for-it-and-finance-leaders Netskope cloud report. (n.d.). The SASE Leader – Netskope. netskope.com/lp/cloud-report/ SaaS management. (2021, June 14). SailPoint. sailpoint.com/platform/saas-management/