SaaS Usage Monitoring Is a Two-Way Street

Ekaterina Mizrobova

Today SaaS vendors grow up like mushrooms after the summer rains. With the emergence of cloud-based services, adoption of new applications has become as easy as never before. Big investments are no longer necessary. SaaS applications have equalled big and small businesses: deployment of SaaS apps is easy, doesn’t require big up-front payments or any special hardware and IT specialists. SaaS support is also a weight off the customer’s shoulders. Now it’s responsibility of a SaaS vendor. Besides, SaaS applications allow a round-the-clock access supporting business flexibility and agility.

Small to moderate SaaS per-month/year/user fees substituted large software licensing fees. This means, that while yesterday SaaS vendors’ main objective was to sell as many software copies as possible, today they have to find a way to retain customers for as long as possible. It’s a difficult task as the SaaS market is booming and a lot of new SaaS apps appear every day. To keep customers loyal, SaaS vendors have to improve their products or develop new ones. For that they need to know whether their customers are satisfied with their SaaS apps, why they are not satisfied, if that is the case, why they don’t use the app’s full capacity, what they like and don’t like about the app. To obtain such information, SaaS vendors need to monitor SaaS usage to derive the required insights.

However, customers also need SaaS usage monitoring. In the era of the cloud customers have a wide choice of applications and have an opportunity to decide on the necessity to continue paying for a particular SaaS app every month or year. Therefore, customers need to track SaaS usage to learn whether a SaaS app is utilized by its employees and brings any value to the company as a whole. Besides, SaaS usage data can reveal duplications or abandoned apps.

SaaS usage monitoring brings benefits to both the vendor and the customer. The first will not survive without constant improvement as the competition gets increasingly tougher and it’s impossible to develop and retain customers without a feedback from them. And customers need data on usage to understand whether they can optimize SaaS utilization, users’ performance and costs. Customers benefit from SaaS vendors’ development and vendors, in their turn, benefit from customers’ loyalty. It’s a two-way street.

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