5 Easy Ways to Optimize Your SaaS Spend
The software as service (SaaS) market is expected to grow from about $130 billion in 2021 to $716 billion by 2028, which is nearly a 500 percent increase globally. With greater growth, however, will come greater needs for spending, and industry leaders are looking for ways to optimize and cut costs in the face of this growth.
Below we’ll look at 5 ways you can optimize your SaaS spending by reducing waste, utilizing tools more efficiently, enabling better SaaS management practices, and more.
What is SaaS Spend optimization?
SaaS spend optimization is simply about finding the most efficient way to reduce costs related to your SaaS application needs and subscriptions, while still maintaining functionality, ability, and user experience.
A big part of your SaaS spend optimization will happen through Technology Value Optimization, which is an optimization process aimed at reducing waste, cutting costs, and protecting yourself from cyber threats.
Examples of SaaS spend optimization
Optimization is a tricky thing to balance because the demands of a growing market, the need to cut costs, and your responsibility to maintain your SaaS applications present a set of contradictory challenges, but that’s essentially what SaaS spend optimization aims to help solve.
A few ways you can optimize SaaS spend practices include:
- Reducing the amount of users who are able to access certain applications.
- Cutting specific applications from the SaaS roster at your company.
- Reducing unnecessary or redundant expenses.
- Creating business strategies that allow you to prioritize certain technology needs.
- Minimizing security risks in order to mitigate threats that could cost you time and money.
How to optimize SaaS Spend
Below we’ll look at five best practices you can utilize to optimize SaaS spend.
Reduce your waste
Especially if you’re a smaller company or startup, it’s difficult to set up a process for managing and evaluating your SaaS waste. Application purchasing, ownership, and SaaS inventory management can get out of hand if you don’t have a system in place to manage your SaaS usage, efficacy, and activity on purchased licenses.
Developing a SaaS procurement strategy or integrating a third-party SaaS procurement solution can help streamline the challenges of reducing SaaS waste. A robust procurement solution can help you gain greater transparency, clean stack, and remove or recycle unused licenses without hours and hours of negotiating. Third-party solutions can also help you get clear, automated insights for SaaS optimal spend on engineering vs sales and marketing ratios.
License management is a huge aspect of not just reducing waste but also optimization as a whole. Like with most things in SaaS development, SaaS license management gets more complicated and difficult to oversee as your business grows.
License management solutions help bring important insights to light, providing you with accountability and visibility of all your SaaS and software vendors. With the right insights on your licenses, you can cut, renew, expand, or replace software that does or does not meet your needs.
Solutions like Sastrify can help by proactively monitoring license usage to identify deficiencies and provide you with a forecast of your SaaS spending.
App adoption and engagement
Get the most out of your licenses by encouraging app adoption across your departments. Creating a company-wide culture of app usage, engagement, and adoption can help ensure greater use and ROI for each of your apps.
This requires a proactive effort from your leadership to educate team members, encourage app usage, and create habits around maximizing tool usage and platform collaboration.
Renegotiate contract with SaaS providers
Renegotiating contracts with SaaS providers, especially as you expand, will be a necessity to reduce costs and gain visibility of your agreements.
The challenge with contract negotiating is that it takes a lot of time and effort to negotiate with each vendor. Procurement solutions help simplify the process by doing the negotiating for you. Sastrify can handle all back-and-forth exchanges with vendors and contractors on your behalf. You gain full visibility of the process, including recommendations for your next purchase.
Automate where possible
Automation will be key in SaaS spend optimization. WIth the right tools, you can automate your SaaS stack in five minutes. Switch your SaaS on autopilot while our team onboards your tool landscape to an all-in-one, spreadsheet-free platform. You have full access to all the insights on usage, spending, security risk, and more.
Automotive features can help you save time/money and create new goals with smart purchasing options that fit your budget.
Final thoughts on SaaS spend optimization
With Sastrify, we can help you negotiate for the best rates with your vendors, automate your manage SaaS licenses, minimize onboarding time, evaluate security risks, track your SaaS software licenses invoices, and gain all the transparency you need without scaling up an internal team, which can be timely and costly.
Click here to schedule a call and learn more about how Sastrify can help you optimize spending and streamline your SaaS procurement process.