SaaS Renewal Best Practices
The widespread use of SaaS software is a good thing for organizations. Users feel empowered to subscribe and deploy the tools they need to do their jobs faster and effectively. Without a doubt, it’s beneficial for companies in many ways.
On the other hand, unlike any other type of vendor contract, SaaS subscription renewals require increased attention to detail. If there’s no dedicated person to manage SaaS apps and their upcoming renewals, it might be tough to know even where to start.
Luckily, the steps described below will provide all information you need to know to successfully negotiate a SaaS renewal contract.
1. Determine Subscription Owners and Renewal Windows
Before planning your strategies and making any steps towards your SaaS renewals, you should determine two things. Who is using this application and the amount of time you have to handle the contract renewal.
Get any available information from teams and departments and individual expense records. It may require much time as well as effort to get any information. That’s why you should know the renewal window – how much time do you have to handle this renewal.
Today, you can get quickly and easily this information by using the SaaS management platform. This platform provides information of your SaaS subscriptions and displays the usage information of each employee. Therefore, you can access all necessary data from a single place.
2. Map out Auto-Renewal Clause
Determining the subscription owner and renewal window is important, but you also need to discover any auto-renewal details. Some contracts have auto-renewal clauses. Therefore, if the user doesn’t notify the SaaS vendor by a certain date, the contract auto-renews automatically for a set amount of time. This auto-renewal clause usually takes effect after the renewal window period. By using a SaaS management platform, you can easily confirm the terms of the auto-renewal clauses of every SaaS subscription in your organization.
3. Discover Contract Details and History
Departments across your company might provide contract records and app insights. This data will help you to discover more details about the upcoming renewal. For instance, you can scour the initial contract, how did the negotiation go, if the app works correctly, how employees find this app, and more.
Keep all your important contracts, licenses, and their key information in one centralized system of records. However, creating this system manually might take a lot of time and effort. On top of that, working with spreadsheets or any other alternatives will not save you from high error and fraud rates.
Binadox provides access to all of your SaaS licenses and their crucial data on one powerful dashboard. This platform eliminates any errors and frauds and drastically saves your time for discovering contract insights and centralizing them.
4. Evaluate SaaS Usage Against Spend
Get any available reports for usage and spend of a SaaS application. Learn the usage patterns and compare it with the cost. This might help you reduce spend and uncover over-provisioned or underused applications. Nevertheless, keep in mind that these reports can be outdated and not accurate.
Consider using a SaaS management platform that provides actual usage and spend data that is always up-to-date. Binadox analyzes your SaaS usage, compares it with your spending, and delivers cost optimization data in easy-to-read reports. Thus, you can effectively track usage and spend across the organization, different teams, and the individual. This way, you can easily find what licenses can be removed or downgraded and how much savings you can get.
5. Enhance Renewals via Innovations
Through a comprehensive platform that helps monitor and manage all your SaaS subscriptions, you get innovative opportunities for enhancing your contract renewals. Therefore, with this platform companies get additional benefits and advantages for their SaaS contract renewals, including:
• Visibility of your SaaS environment. Get a complete view of any used, unused or underused licenses in your company.
• Ability to proactively plan renewals. With advanced visibility you can also get contact details and exact usage information that will give you the upper hand in renewal negotiations.
• Forecast and optimize budget. Detailed spend reports and cost optimization data enable companies to easily forecast and optimize budget.
• Ensure compliance and detect issues. Get all contracts, ensure license compliance and receive highlighted issues through one dashboard.
Learn about SaaS usage trends, understand the importance of SaaS management tools, and discover how to take control of your SaaS applications together with Binadox.