SaaS Spend Management Challenges: How Much You Should Spend On SaaS?
If you’re an executive at a medium-size or large organization, you most certainly invest in SaaS software. Regardless of whether your business focuses on B2B or B2C market segment, today, each of your individual business unit is using hundreds or even thousands SaaS applications. However, if you can’t tell how much exactly your organization spends on SaaS, you’re not in minority.
What are SaaS Spend Management Challenges?
SaaS spend management is complex. Trying to control spending is important, but there are obstacles that can get in the way of making a budgeting or spend initiative effective. These obstacles corrupts spend management, and your company’s budget can suffer greatly because of it. Without SaaS spend management, however, your budget can be just as vulnerable. Here are a few major spend management problems and how to solve them:
Old Data in Month-Late Reports
In many cases, organizations are using traditional spend management tools and expecting better result. However, it’s important to understand that managing SaaS expenses requires real-time spend reports. Traditional spend management uses spend data that’s at least month old. This makes it difficult – if not impossible- to optimize expenses and drive the financial success of your business.
Therefore, nowadays, organizations need to find a robust solution that helps track spend in real-time.
Luckily, a SaaS spend management solution provided by Binadox can do just that. It arms organizations with full visibility into your SaaS expenses, so administrators and business leaders can instantly view what’s being spent right when it happens.
Hidden Licenses and Time Consumption
If you need to inventory all your SaaS licenses your organization currently paying for, it most likely will consume the most part of your work. You could use a spreadsheet program to manually gather all expense information and look for familiar charges. Alternatively, you could round up the department managers and ask which software each team uses. But either way, there’s a good chance you’d overlook dozens of SaaS licenses. Most importantly, it will also take a lot of time as well as efforts to fill up an incomplete list of your SaaS licenses.
A SaaS spend management tool eliminates the need to spend months or weeks on generating spreadsheets and chasing down your business units. By using the right tool, you can receive an accurate list of every single SaaS license, applications and vendors across the enterprise with just a couple of clicks.
Ineffective Cost Cutting
Using month-late reports and being unable to track hidden licenses makes it impossible to know what cost can and should be cut. Cutting costs blindly isn’t helpful for your organization and might decrease productivity of employees’ workflows. It’s important to understand that not every SaaS license is something you can get rid of. You might remove useful or necessary SaaS license and not even acknowledge that. Therefore, instead of taking an axe to expenses, organizations need to add value to SaaS subscriptions and optimize costs.
That’s why Binadox provides the resources that are critical for adding values and optimizing costs at your business. Binadox users receive proper insights into utilization and expenses of every single SaaS license. This way, these users can quickly identify ineffective costs and have an upper hand in upcoming renewals.
SaaS Spend Management Requires the Right Tool
While SaaS spend management may not seem like a high priority investment for your company, it’s absolutely essential to helping your company run leaner and increase profitability. Automating your SaaS spend management with Binadox can help you determine your budget waste with a single click.
Binadox provides enterprises with the most comprehensive visibility, improved control, and increased flexibility to utilize your financed that will benefit your business.
Sign up your free Binadox account to learn more about more effective spend and SaaS management.