{"id":15114,"date":"2023-05-20T14:00:28","date_gmt":"2023-05-20T14:00:28","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=15114"},"modified":"2023-05-20T14:00:28","modified_gmt":"2023-05-20T14:00:28","slug":"saas-management","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/saas-management\/","title":{"rendered":"SaaS Management in the Digital Age: Everything You Need to Know"},"content":{"rendered":"\n

Software as a Service (SaaS) is a booming industry.<\/span><\/p>\n\n\n\n

According to McKinsey, the global SaaS market is <\/span>worth about $3 trillion and is estimated to surge to $10 trillion by 2030<\/span><\/a>.<\/span><\/p>\n\n\n\n

SaaS is a result of major <\/span>digital transformation within the software industry<\/span><\/a>\u2014 to be specific. It\u2019s a result of a <\/span>business model transformation<\/span><\/a>. It\u2019s safe to say we\u2019ve come a long way from how we distributed and managed commercial off-the-shelf software (COTS).<\/span><\/p>\n\n\n\n

There\u2019s no doubt that SaaS applications enhance your experience as a business customer tenfold. But <\/span>implementing SaaS tools<\/span><\/a> is only the start of the battle. With the rocketing popularity of the SaaS business model comes a need for<\/span> robust, organized SaaS management<\/b>.<\/span><\/p>\n\n\n\n

In this article, we will talk about what made SaaS such an attractive solution in the first place and all its impressive benefits.<\/span><\/p>\n\n\n\n

We will also cover the basics of SaaS management, so you\u2019ll know what it is and <\/span>how to begin setting up your own SaaS management infrastructure<\/b>. From helping increase efficiency to reducing IT bottlenecks, there is no shortage of reasons to invest in a robust SaaS management system. <\/span><\/p>\n\n\n\n

We won\u2019t leave you with only the theory, though. We\u2019re also giving you practical tips to take your SaaS management to the next level.<\/span><\/p>\n\n\n\n

What is SaaS Management, and Why is it Important?<\/b><\/h2>\n\n\n\n

SaaS Management is the process of administering and controlling the SaaS applications used by your business. <\/b><\/p>\n\n\n\n

SaaS management has become popular in the digital age, with more businesses adopting cloud-based software solutions. <\/span><\/p>\n\n\n\n

With SaaS Management, you can streamline your software procurement process, keep track of usage data, and manage subscriptions more efficiently. <\/span><\/p>\n\n\n\n

But SaaS management is not just about managing applications; it’s about making informed business decisions based on data-driven insights. <\/span><\/p>\n\n\n\n

Implementing effective SaaS Management practices ensures you\u2019re getting the most out of your software investments. <\/span><\/p>\n\n\n\n

The bottom line is that SaaS management is now <\/span>essential for every digital-first business<\/b>. You may be wondering <\/span>why SaaS applications are worth all the fuss<\/b>. If COTS software wasn\u2019t broken, why fix it?<\/span><\/p>\n\n\n\n

How Cloud Technology Has Changed Software Management<\/b><\/h3>\n\n\n\n
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Cloud technology is the underlying technology that has enabled the SaaS industry to swell to its size.<\/span><\/p>\n\n\n\n

But what exactly are the benefits of SaaS to you, the consumer?<\/span><\/p>\n\n\n\n

Software Can Be Digitally Distributed<\/b><\/h4>\n\n\n\n

SaaS applications are hosted in the cloud, meaning you can access them from any device with an Internet connection. <\/span><\/p>\n\n\n\n

You no longer need to install software on individual computers or servers\u2014 everything is accessible via a secure URL. <\/span><\/p>\n\n\n\n

This saves time and reduces the amount of hardware and software you need to manage.<\/span><\/p>\n\n\n\n

SaaS Apps Don\u2019t Require Long-Term Commitment<\/b><\/h4>\n\n\n\n

With traditional COTS software, you\u2019re committing to a long-term contract with stipulations if you want to opt out. <\/span><\/p>\n\n\n\n

With SaaS applications, you can pay as you go or cancel anytime. <\/span><\/p>\n\n\n\n

This allows you to try out applications without committing to long-term contracts.<\/span><\/p>\n\n\n\n

SaaS is Easily Scaled<\/b><\/h4>\n\n\n\n

Thanks to the cloud, SaaS applications can be quickly scaled up or down depending on your needs. <\/span><\/p>\n\n\n\n

This means you can <\/span>only pay for what you need at that time<\/b>. <\/span><\/p>\n\n\n\n

It\u2019s a much more efficient way of working, allowing you to optimize your business\u2019s software investments.<\/span><\/p>\n\n\n\n

SaaS Could Be More Expensive but More Cost-Effective<\/b><\/h4>\n\n\n\n

SaaS applications tend to be pricier than COTS software, but the extra benefits of the SaaS model offset this. <\/span><\/p>\n\n\n\n

As we\u2019ve said, you don\u2019t need to commit to long-term contracts and can scale up or down as needed. This can make SaaS apps more cost-effective in the long term.<\/span><\/p>\n\n\n\n

SaaS Apps Often Require Less Training<\/b><\/h4>\n\n\n\n

Because SaaS applications are hosted in the cloud, updates are often automated, and users don\u2019t have to worry about manually downloading patches.<\/span><\/p>\n\n\n\n

This allows developers to make minor quality-of-life or ease-of-use changes on the fly. <\/span><\/p>\n\n\n\n

The result is that the need for <\/span>employee training<\/span><\/a> is reduced, and your users can start using the application almost immediately.<\/span><\/p>\n\n\n\n

The Benefits of Good SaaS Management<\/b><\/h2>\n\n\n\n
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Okay, so SaaS applications are worthwhile. What about SaaS management? Is it really necessary?<\/span><\/p>\n\n\n\n

Here\u2019s a list of some of the top benefits of SaaS management:<\/span><\/p>\n\n\n\n

Contain Software Costs<\/b><\/h3>\n\n\n\n

Good SaaS management can help you get the most out of your software investments by providing insights into what applications are being used and by whom. <\/span><\/p>\n\n\n\n

This can help you identify opportunities to reduce costs and make better purchasing decisions.<\/span><\/p>\n\n\n\n

Organize Licensing<\/b><\/h3>\n\n\n\n

With SaaS Management, you can track license agreements and ensure you have the right number of users per application. <\/span><\/p>\n\n\n\n

This will help you avoid overspending on unused licenses and ensure all your software is properly licensed.<\/span><\/p>\n\n\n\n

Plan SaaS Renewals<\/b><\/h3>\n\n\n\n

With SaaS Management tools, you can set up alerts to remind you when subscriptions are due for renewal so you don\u2019t miss out on important contractual terms or extra features.<\/span><\/p>\n\n\n\n

Communicate with Vendors and Track Contracts<\/b><\/h3>\n\n\n\n

You can also use SaaS management tools for <\/span>vendor management<\/span><\/a>.<\/span><\/p>\n\n\n\n

They make it easier to communicate with your vendors, keep updated with contracts, and get news of new service offerings.<\/span><\/p>\n\n\n\n

Guarantee Compliance and Security<\/b><\/h3>\n\n\n\n

Poorly managed SaaS applications could be vulnerable to security threats or non-compliance with industry regulations. <\/span><\/p>\n\n\n\n

According to IBM, the average data breach cost is <\/span>$9.44 million in the United States<\/span><\/a>. It\u2019s a punishing mistake to make.<\/span><\/p>\n\n\n\n

A good SaaS management system can help you ensure that your applications comply with industry regulations and keep your data safe from cyber threats.<\/span><\/p>\n\n\n\n

Combat Shadow IT<\/b><\/h3>\n\n\n\n

SaaS management can also help to combat \u201c<\/span>shadow IT<\/span><\/a>\u201d (more on this later) by providing visibility into which applications are being used in your organization and for what purpose.<\/span><\/p>\n\n\n\n

Improve Collaboration Across Your Organization<\/b><\/h3>\n\n\n\n

Finally, SaaS management can improve collaboration across your organization by providing insights into which applications are being used and how. <\/span><\/p>\n\n\n\n

This will give you insight into which applications are working well for different teams and allow you to make better decisions about which SaaS apps best suit each of your needs.<\/span><\/p>\n\n\n\n

How Does SaaS Management Help Fight shadow It?<\/b><\/h2>\n\n\n\n

Shadow IT is defined as using unapproved applications and devices in an organization, often without the knowledge or consent of IT security personnel. <\/span><\/p>\n\n\n\n

This often happens when employees try to find a quick solution to a problem and download software off the internet that your organization hasn\u2019t approved. <\/span><\/p>\n\n\n\n

The problem with Shadow IT is that it can introduce risk into your organization since these applications haven\u2019t been tested and could be insecure or non-compliant.<\/span><\/p>\n\n\n\n

SaaS management can help you identify shadow IT by providing visibility into which apps are used in your organization and for what purpose. This allows you to take steps to ensure your employees aren\u2019t using any unauthorized applications that could pose a threat to your data and compliance.<\/span><\/p>\n\n\n\n

SaaS Management: Whose Job Is It?<\/b><\/h2>\n\n\n\n
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Ultimately, it depends on the size of your organization and the complexity of the applications you use. <\/span><\/p>\n\n\n\n

In small businesses, IT staff might be responsible for managing SaaS applications. For larger organizations, an entire team of people may be dedicated to SaaS management. <\/span><\/p>\n\n\n\n

The largest corporations balance the responsibilities of SaaS management between:<\/span><\/p>\n\n\n\n