Understanding SaaS Renewal Process: Risks and Solution
When you are running an entire enterprise, finding a single application or vendor that meets all your IT issues is nearly impossible. That’s why employees tend to use and renew hundreds of applications to get their job done. The problem is, the increasing adoption of cloud renewals quickly leads to budget overspending and other crucial problems.
Most often organizations can’t really tell how much they’re spending on SaaS renewals. It’s difficult – if not impossible – to find redundant cloud renewals, as all necessary data is buried in the month-late spreadsheets. Manual software expense management across all teams and employees is highly time consuming and prone to errors. However, the cost of redundancies can represent a solid percentage of software expenses.
Duplicate Costs, Duplicate Licenses
In most cases, employees start using a new SaaS application without going through IT procurement procedures to complete work-related challenges faster. For the sake of simplicity, employees could also use their personal credit cards to buy a SaaS subscription. As the result, multiple departments in your organization may be charging big bucks for duplicate and redundant licenses each month.
IT or finance departments usually have many other priorities than continuously filling up spreadsheets or manually tracking whether multiple teams and employees are using the same SaaS subscription. Especially if they’re charging it from corporate or personal cards. Therefore, many business leaders and managers usually don’t even know that redundancy is an issue in their organization. As the result, many organizations aren’t aware of the cost of duplicate and redundant licenses.
Without an accessible tracking mechanism, no one really knows what others are using. Fortunately, the following outlines a smart way to detect and remove such licenses and reduce costs.
How to Close Redundancy Gap
As the number of your adopted SaaS application increases, it becomes more important to get visibility into the SaaS renewals. Today, you also need to automate SaaS cost optimization in your organization. A comprehensive SaaS management platform like Binadox instantly shows what your employees are using and how much they’re spending on SaaS.
With Binadox, organizations gain full visibility to determine if subscription redundancies are occurring. Binadox provides utilization, contract details and spend information of every single license across the enterprise. This platform also provides cost optimization analytics and all necessary data to efficiently reduce costs. Binadox shows exactly the unused or underused applications within your organization and how much you can save by changing a license. On top of that, Binadox users can not only optimize costs and remove redundancy, but also ensure security and license compliance with just a few clicks on one dashboard.