SaaS: Appearances Are Deceiving

Ekaterina Mizrobova

It’s often thought that SaaS applications eliminate the need for Software Asset Management (SAM) and simplify the life of CIOs and CFOs. However, it’s far from the truth and most of the time is quite the opposite.

According to Gartner, “IT sourcing and vendor management leaders need to recognize that SaaS subscriptions are not a turnkey fix to licensing complexity, but will increase cost risks and add to the demands on SAM.”

The life of CIOs and CFOs also has not become easier as one might think. Deployment of SaaS apps is way simpler than on-premise software deployment. And this is good only from one perspective, because from another perspective this simplicity is the reason spend on SaaS is skyrocketing. SaaS applications explode and so do SaaS costs, as “subscription models create a recurring expense for each license, whether used or unused.” Major contributors to the SaaS cost increase are business units procuring their own SaaS and employees that can now subscribe practically to any cloud service they want without informing IT.

These costs are invisible for CIOs and CFOs, who are still held accountable for them. Today CIOs and CFOs already realize that they pay too much for SaaS subscriptions, especially taking in account that plenty of these subscriptions stay unused or underused. They cannot limit SaaS subscriptions as one of their duties is to encourage technological advance. What they can do is to continuously monitor app usage & licenses to discover, manage and optimize cloud investments within the enterprise.

To do that, CIOs and CFOs need high quality analytics. Gartner says that a critical success prerequisite is reliable usage data. Unfortunately, the insights generated by analytics platforms that have appeared recently cannot be called reliable, as these platforms use external data for analysis, which cannot provide a comprehensive and accurate picture of the situation.

According to Gartner, a critical mechanism to manage SaaS costs is SAM. Binadox provides just that! Binadox SaaS Web Usage Monitoring tracks actual SaaS usage and its scope. The solution does not only provide you with the complete inventory of your SaaS assets, but also tracks all the SaaS apps back to the users who have subscribed to them and are supposed to utilize them, which is not always so.

Considering the SaaS adoption rates and the growing number of SaaS apps within the enterprise, SaaS management becomes an inevitable need. CIOs and CFOs should shift their focus to cutting excess SaaS costs.

How to save IT budget on SaaS subscriptions and software compliance