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This probably isn’t new to you; software as a service (SaaS) tools are part of every organisation. What might surprise you is the average number of tools an organisation used in 2022: 130!
Now, take a second, close your eyes, and try to think of all the tools your organisation uses. Do you think you can name them all? Chances are that you can’t do this. That’s a pity because an overview of all the SaaS tools in your company can actually save your money. In this article we’ll describe 5 ways in which such an overview will bring your SaaS spend down.
Spot duplicates
In many organisations, not all teams interact with each other on a daily basis. Therefore, it can happen that two teams both use tools that are similar to each other. This is a shame because with most SaaS tools, there is a possibility to get volume discounts. Getting an overview of the tools that your business uses allows you to see if there are any tools that overlap each other in terms of functionality. That can be the start of the migration to one better contract!
Anticipate on renewals
When you’re managing a lot of SaaS contracts without an overview, it is likely that you miss some renewals. This can be costly for two reasons. First of all, you might not necessarily need a certain SaaS tool anymore. If the renewal happens, you will be stuck with the tool for at least a month and probably a year. Secondly, many SaaS providers apply price increases upon renewal. If you don’t actively push back on these, these price increases will be applied on your contract as well. The typical SaaS overview shows and/or alerts you about any renewals that are coming up.
Fight shadow IT
Shadow IT are usually small(er) SaaS contracts that are purchased by individuals in your organisation without having gone through the normal procurement steps. Without a proper overview, they might be missed. If you have a good overview of the SaaS tools in your company, you can spot any contracts that are out of the ordinary. These shadow SaaS tools can usually be purchased at a better rate and with less risk. Especially when you work with experienced buyers.
Avoid unused tools
Remember that ex-colleague who came in with a lot of new ideas but who left after a year? The tools they purchased might still be around - and you’re paying for them. In a typical SaaS overview, you can assign ownership to your SaaS contracts. If you cannot find the owner, it’s time to cancel that contract!
Spot tools you’re paying too much for
If you’re using a tool like Spendicious to create your SaaS overview, it is possible to view pricing data on a lot of SaaS vendors. With this information in your backpocket, you can easily see which vendors are using you as a cash cow. In your next negotiation, you can use this data to bring the price down.
In summary; a SaaS overview will help you spot duplicate, unused or ‘shadow’ tools. When you get alerted about an upcoming renewal, you are on time to cancel or amend these contracts. Finally, using pricing data you go into your negotiations stronger!
Don't want to go into the nitty gritty yourself? The expert buyers at Spendicious will do this for you - risk free!