How to Address SaaS Cost Management | Binadox - SaaS management

How to Address SaaS Cost Management

Stanislaw Lee

In the SaaS era, organizations tend to use more software than ever before. According to researches, SaaS model is the largest segment of the cloud market and it expected to reach 45 percent of total application software spending by 2021.

SaaS applications are beneficial for your employees and your company in many ways. For instance, these apps boost productivity and provide flexibility for workflows. However, today, many organizations blindly commit to purchases they have no visibility on. Beyond that, SaaS cost management is even more challenging, since most employees buy and use SaaS apps without checking with IT or finance teams. This leads to increasing fraud risk, makes expense management more time consuming and limits your ability to make right budget adjustments.

So, how can a company gain control over its software budget? It’s highly important to break it down into the following areas and tackle each one:



The first step towards cost management is SaaS discovery. This includes tracking and monitoring of all subscriptions in your company, usage data, expense reports, network activity and app integrations.

Obviously, you can try to discover your application manually by asking around and make a spreadsheet. Nevertheless, this way, you most likely won’t discover every single SaaS license in your company. For instance, your employees simply might not know about their existing SaaS subscriptions or duplicate licenses. Alternatively, your company might be paying for subscriptions of your ex-employees and they still might have access for your corporate data. It’s also highly recommended to avoid manual SaaS discovery and management due to high error rate and time consumption.

You can quickly get a complete picture and avoid bothering employees with your spreadsheets by using an automated SaaS discovery and management platform like Binadox.



SaaS inventory means identifying app vendors, usage, accounts, each users or teams, and features of each SaaS application. Organizations should define every single SaaS cost and assign it to some function of the business.  However, this information requires a deeper view, especially for vendors with multiple products or with multiple tiers of usage. By using a SaaS management platform, companies can monitor and track SaaS vendors and their apps. Therefore, they can get better understanding of why employees are using, underusing or not using certain apps.  This platform helps make more advanced and more strategic budgeting decisions.



SaaS cost optimization is the most vital part of cost management. Once you gain visibility into their SaaS environments, you can much more opportunities to manage expenses and cut costs.

Start by removing applications with zero usage and any duplicate licenses. This is the initial and most obvious step for cost optimization that will be easy to make if you have discovered your SaaS apps and their usage.

The next step is to find underused applications. This step is significantly harder than just removing unused apps and maybe impossible to make manually. However, a SaaS management platform can also help you find underutilized apps and suggest if a different or cheaper license is required.

Once you have removed unused and duplicate licenses and found underused apps, you can take your cost optimization to the next level. With the power of a SaaS management platform that automates cost optimization processes. With this powerful tool in your hands you can accomplish much more objectives, including:

•Discover costs of each employee

•Ensure license compliance

•Create multi-tenant subscriptions

•Easily manage your renewals



By engaging in each of aforementioned areas: Discovery, Inventory, and Optimization in the specific context of SaaS cost management, organizations can manage and control this complex spend category and provide strategic guidance for a digitally enhanced enterprise.

Today, advanced tools can help you collect all necessary data you need for mastering application cost management. Binadox drastically facilitates discovery, inventory and optimization of your SaaS apps. Binadox can also support your organization in many ways. Sign up your free account, to learn how.