Understanding the SaaS Lifecycle
Why the SaaS Lifecycle is Important for Your Company?
Organizations are now, more than ever, are increasingly moving towards the cloud. From Salesforce to Office 365, many vital business applications are now cloud-based. The reason and benefits are obvious: simple upgrades, no maintenance fees, zero footprints, and much more. Therefore, the software is being consumed more frequently and more as a service.
Companies need to acknowledge that increasing SaaS adoption poses completely different challenges for IT. For instance, the aggregate cost of SaaS licenses consumes much more of the software expense budget than you expect. Even after you’ve canceled some of the subscriptions and removed certain licenses. Another challenge, for example, is tracking SaaS applications and who’s using them.
Understanding “SaaS Lifecycle” is an important part to start managing your SaaS licenses. Every cloud service that enters your company has its lifecycle. Your employees might stop using a SaaS tool sooner or later. Therefore, if you don’t monitor and manage the lifecycle of your cloud services, you can’t control your SaaS environment.
What is the SaaS Lifecycle?
The SaaS lifecycle covers every process users go through from learning about and acquiring a SaaS application to the end period of service. Thus, the SaaS can be divided into the following lifecycle 5 stages:
This stage refers to the introduction of the SaaS application to your company. When an employee gets a new SaaS license, the IT department should acknowledge this subscription. Without this introduction or proper application visibility, organizations might pay for and don’t even use an overwhelming amount of SaaS licenses.
Today, employees usually deploy a new SaaS application without checking with IT teams. However, to minimize security risks and ensure compliance with each license, your IT team needs to review all cloud services and SaaS vendors. Beyond that, organizations must be aware of app costs, exact usage, why employees are using this app, what are alternatives to this app, and more.
The retention stage refers to supporting applications approved by IT, security, finance, and other departments. The cost estimate should be known and approved. All renewal dates need to be specified on a forecast plan. Companies should also receive notifications of each license renewal. Employees must also know which applications are approved by their organization. At the same time, companies should be aware of shadow IT – SaaS applications that are not approved by IT and other teams.
When your organization succeeds in the retention stage, you can engage in cost and usage optimization. However, before that, it’s necessary to get control over SaaS costs. In addition, companies should discover which employee is using what application.
Without detailed spend reports and insights, your company can quickly lose control over SaaS costs. Besides, you can’t optimize SaaS costs without proper spend visibility of each team and employee.
Some SaaS vendors provide login and single sign-on data of their applications. However, employees log in to their SaaS applications automatically and might not even use them. Therefore, relying on this data might be dangerously misleading.
For these reasons, the company should receive spend and usage information as well as optimization data on one powerful dashboard.
Retiring a cloud service is the highly crucial stage. Your organization should not ignore or skip this process. Aside from the obvious cost perspective, unused and unknown SaaS apps expose your company to significant security risks. Furthermore, today, companies usually have several duplicate licenses of the same app. Hence, app visibility while retiring a service is increasingly important.
The SaaS Lifecycle Management Solution
SaaS adoption is constantly increasing across. Using traditional management methods is highly ineffective and inefficient due to the high error rate and time consumption. Luckily, today, companies have another solution to consider.
Organizations can easily manage all applications through the entire SaaS lifecycle by using a comprehensive SaaS management platform like Binadox. It provides all the necessary tools to discover every SaaS application, get the exact app usage, and receive spend data. Binadox also provides cost optimization information and shows exactly how much you can save by obtaining a different license. Beyond that, Binadox helps organizations to discover underused and unused licenses on a single dashboard. Therefore, companies can easily optimize costs, gain control over SaaS apps and improve security at the same time.
To learn more about how your organization can benefit from managing your SaaS apps, try out Binadox today!