Introducing the 2023 Sastrify SaaS Spend Management Guide
Almost every business – over 99%, in fact – use at least one Software-as-a-Service (SaaS) tool, but the average stack is much larger (96 among Sastrify customers). Every single one of those platforms adds up, and in an uncertain economy, it’s no surprise that companies are searching for ways to save.
We want to help you do it. Sastrify is excited to share our 2023 SaaS Spend Management Guide, packed with eight actionable tips to help you better forecast your usage, spot savings opportunities, and negotiate the best prices.
Overview of Sastrify’s 2023 SaaS Spend Management Guide
Reading the report will give an overview on why 2023 is the year to get control of your SaaS spending and offer eight tips to help you do it. Here is a sneak peek at three of the tips we highlight in the report:
1. Identify the primary cost driver(s) of your SaaS spending
The first step in any savings plan requires that you understand the cost driver(s) for each tool – think of this as your SaaS COGS. This will aid your efforts to forecast what your usage will be (i.e. how much you should commit to or plan for), how to optimize your SaaS pricing, and what your cost will end up being.
For example, the primary cost driver for business SaaS platforms like Google Workspace or Microsoft Office 365 is typically the number of employees. You can determine this figure from HR and finance headcount forecasts.
Other tools charge by factors like:
- Number of servers monitored (Datadog)
- Monthly Tracked Users, or MTUs (Segment)
- Volume of data stored (Snowflake)
2. Commit to your SaaS Subscription for optimal unit price
After you’ve forecasted your volume and know how much you plan to purchase in the next year (tips 1 - 3 in the report), you can find ways to leverage that information in negotiations with the SaaS vendor.
To get the optimal unit price, you need to find the right balance between flexibility and price – this is what we mean when we talk about SaaS cost optimization. This balance will be different for every company, so there’s no “right” answer. Here’s how some of the combinations could look:
- High flexibility, high price – On-demand buying (e.g. monthly plan)
- Medium flexibility, medium price – Small commitment plus bulk purchase as needed
- Low flexibility, low price – Large commitment in advance
Not sure what’s right for your specific case? The report goes into much more detail on finding the right scenario for getting the best bang for your buck with your SaaS providers.
3. Negotiate with your SaaS providers step by step
We always like to remind SaaS buyers to hold onto their “carrots” – i.e. new things you have to offer like a longer commitment or higher volume – in the beginning of a negotiation. First, see if you can get any discount or other benefit for keeping a flat renewal (same contract as before).
Then, you can ask hypothetical questions to see what you could get on top. For example, “What if I add 30 additional licenses next year? What would that do to my pricing?”
The tips in this report offer insight you can act on now to save money – and we know they work because our customers have proved it. Sastrify has helped customers save over $10 million on software.
Download Sastrify’s 2023 SaaS Spend Management Guide today
Sastrify’s Guide to SaaS Savings offers an expert view into the top ways to save money on SaaS tools in 2023 through better usage forecasting, analytics, and negotiation. Any buyer of SaaS or procurement leader will discover actionable insights for better SaaS buying in the new year.