The software as a service (SaaS) model has revolutionized the way businesses operate and drive innovation. SaaS applications revolutionize industries by providing cutting-edge capabilities that empower employees across entire organizations to drive innovation.
While SaaS implementations are relatively straightforward, managing them proves challenging. As the rapid adoption of Software as a Service (SaaS) solutions continues to accelerate, the associated complexities are likely to escalate significantly. With the sheer complexity of IT systems, employees may struggle to identify the various services staff access, utilize, and the level of utilization, as well as the type of sensitive information potentially exposed, thereby posing a risk to the organization’s security. All SaaS sprawl-related dangers, including these, must be acknowledged and addressed proactively to prevent them from spiraling out of control.
According to numerous surveys, more than a third (37%) of IT professionals and executives consider identifying ways to optimize software usage a critical challenge. Now is the opportune moment to consolidate SaaS management into broader software asset management (SAM) and IT asset management (ITAM) endeavors, harmonizing processes and maximizing value from technology investments.
SaaS solutions are often surprisingly easy to adopt, allowing for a seamless onboarding process. Customers seek out gaming platforms that offer attempt-before-you-buy choices, low preliminary pricing, versatile subscription models, and engaging gameplay experiences. Frequently, staff members procure SaaS solutions without navigating their organization’s centralized IT procurement process, despite explicit directives from management requiring all IT purchases – including software licenses – to be routed through IT.
In an ideal scenario, organizations maintain comprehensive records of their entire IT estate, encompassing both software and hardware assets; however, this is often not the reality. As purposes multiply, they inevitably become part of “unauthorized software, hardware, or information technology assets – useful resources exploited without approval, data, or oversight within an organization’s network.”
Unsanctioned SaaS utilization suggests that the organization lacks critical visibility into how employees are using cloud-based software applications outside of approved channels.
- SaaS platforms are being utilized to streamline business operations, enhance collaboration, and drive innovation across various industries.
- According to a recent report by Gartner, the global software-as-a-service (SaaS) market is expected to reach $76.3 billion in 2023, with an estimated growth rate of 19.1% from 2022 to 2025. This significant spending on SaaS reflects the increasing adoption of cloud-based solutions across various industries and geographies.
- The potential risks to safety that cloud-based software applications may pose.
A Software as a Service (SaaS) administration platform can significantly boost SaaS visibility, thereby reducing the risk of frequently occurring threats. SaaS administration requires granular usage data to provide comprehensive insights into an organization’s IT landscape. The comprehensive discovery process uncovers a diverse range of authorized and unauthorized Software as a Service (SaaS) applications in use across the organization, including both licensed and freely available tools. Accurate information is essential for supporting the overall IT infrastructure, thereby enhancing the effectiveness of strategic decision-making across the organization. Readability plays a crucial role in facilitating swift and effective management of safety risks.
Improved visibility into SaaS deployments does not solely help mitigate sprawl and strengthen security, but will likely also drive significant enhancements to the bottom line. Seamless readability into the top-spending distributors, such as Salesforce and ServiceNow, can significantly facilitate efficient license negotiations. Savings could potentially be achieved by streamlining subscriptions, consolidating contracts, identifying and reclaiming underutilized resources, and eliminating unnecessary expenditures.
One of the most significant hurdles to bridging gaps in visibility is the issue of readability within the information itself. Precise and detailed information is crucial to avoid inaccurate outcomes, particularly when extracting data from sources that may lack depth or normalization processes. For example, identifying software as simply “Adobe” rather than specifying “Adobe Acrobat” can lead to misunderstandings. Clear and consistent data elements are essential for achieving visibility and avoiding confusion.
The ability to identify and establish shadow IT can reveal potential gaps in software adoption, potentially highlighting new applications employees may be using without prior consideration for procurement or integration with existing systems? They may highlight that supplementary budgetary allocations can also be imperative, for instance, in accommodating the increasing dependence on generative AI suppliers such as ChatGPT or Microsoft Copilot, which enable employees to satiate their technological demands and optimize productivity accordingly.
While Software as a Service (SaaS) applications may offer seamless access for end-users, they pose significant challenges for IT organisations to implement and manage effectively. A lack of transparency in the ownership of Software as a Service (SaaS) procurement, administration, and related responsibilities can lead to uncertainty and difficulties. The absence of a cohesive technology management strategy often results in inefficient spending habits, difficulties tracing excess expenditures, and disjointed software renewal processes that hinder organizational productivity. Moreover, the widespread use of unsecured applications and information practices poses significant risks to data integrity, while IT resources are frequently drained by addressing issues related to these haphazard purchases.
Rather than struggling to cope with fragmented SaaS acquisitions and the typical issues that ensue, organizations can boost their SaaS management initiatives by assuming ownership of SaaS responsibilities. A dedicated team responsible for ensuring SaaS governance can establish and maintain crucial controls that mitigate risks and curb the proliferation of cloud-based services.
As an enterprise, you’re unlikely to curb SaaS spending or SaaS proliferation entirely. Whenever the advertising and marketing team needs an XYZ service again, they can’t stop, block, or alter the default choices that were selected for a particular module in one of their favorite advertising and marketing campaigns. To equip groups with comprehensive understanding of the total cost of SaaS ownership, it’s essential to educate them on the entire price of possession, encompassing not only the consumer licence fees but also all other associated expenses.
Organizations looking to streamline their Software as a Service (SaaS) management should enable the administrative team to oversee responsibilities including:
- Streamlining non-essential IT applications to eliminate redundancy, thereby minimizing potential risks and costs associated with duplicated utilities.
- Eliminating the Deployment and Utilization of Non-Conforming Software Applications
- Ensuring secure configurations for Software as a Service (SaaS) applications to minimize potential risks and threats.
- Consolidating strategic initiatives by streamlining SaaS procurement across the organization, thereby bolstering enterprise-wide growth.
- Calculating the Total Cost of Ownership for Software-as-a-Service (SaaS) expenditures versus traditional consumer licensing models.
- Elevating Negotiations for Licensing Opportunities.
Effective governance of SaaS solutions often poses significant challenges for many organizations. Lack of cohesion in management and standardization processes for sourcing, procurement, and billing can leave a corporation vulnerable to significant risks. While overspending, safety vulnerabilities, and regulatory risks associated with poor information governance may threaten the norm as Software-as-a-Service (SaaS) continues its ascent?
SaaS leaders can amplify their organization’s governance capabilities through numerous measures.
- Considerably evaluate your tech infrastructure and drill down into the underlying reasons why employees may be seeking out SaaS solutions. Organizations may crave innovative approaches and more agile methods for knowledge acquisition.
- Streamline fragmented SaaS usage and procurement habits that have become increasingly prevalent today. What drives business success is a cohesive vision for growth, fueled by a centralized framework for Software as a Service (SaaS).
- Establish a structured Software as a Service (SaaS) vendor discovery process. A comprehensive evaluation framework that consolidates component scores with cybersecurity safeguards, robust encryption measures, and trusted vendor credentials would yield a holistic assessment of overall reliability. When customers procure services without engaging with central IT, this framework ensures responsible sourcing.
- Empowering employees to recognize the risks surrounding unmanaged Software as a Service (SaaS) usage – and the benefits of a more integrated approach that provides increased visibility, security, and cost savings.
- Ensure that the organization complies with relevant data privacy laws regulating the collection, processing, and handling of information – including that of clients, employees, and other stakeholders.
You can be a trusted partner that fosters the growth and success of what you’re advocating for. Develop a comprehensive strategy to effectively manage Software as a Service (SaaS) applications by streamlining operational workflows, optimizing resource allocation, and ensuring seamless integration with existing infrastructure. How are software programs being utilized? By leveraging cutting-edge IT applications and robust governance frameworks, we can revolutionize the way our customers experience software-as-a-service (SaaS) innovation.
To achieve optimal outcomes, it is crucial to maintain seamless stakeholder communication, empowering them to leverage valuable insights in negotiations to secure more favorable deals, while simultaneously documenting and showcasing cost savings across the organization to inform leadership of the initiative’s triumphs. Are we prepared to confront the unseen consequences of our actions? It begins with visibility.
