In today’s fast-paced digital landscape, Software-as-a-Service (SaaS) has become the backbone of modern businesses. From streamlining workflows to enhancing collaboration, SaaS tools are indispensable. However, as organizations adopt more SaaS applications, managing them effectively becomes a critical challenge. Without proper oversight, businesses risk overspending, security vulnerabilities, and inefficiencies.
To help you stay ahead, we’ve compiled the top SaaS management best practices for 2023. Whether you’re a small business or a large enterprise, these strategies will ensure you maximize the value of your SaaS investments while maintaining control and security.
One of the biggest challenges in SaaS management is the lack of visibility across all applications. With multiple departments subscribing to different tools, it’s easy to lose track of what’s being used, who’s using it, and how much it costs.
Best Practice:
Invest in a SaaS management platform (SMP) to centralize all your SaaS applications. These platforms provide a single dashboard to monitor usage, costs, and compliance. By consolidating management, you can eliminate redundant tools, reduce shadow IT, and gain better control over your SaaS ecosystem.
SaaS sprawl is a common issue, where businesses accumulate too many applications over time. This not only leads to unnecessary expenses but also creates inefficiencies and security risks.
Best Practice:
Perform regular SaaS audits to identify underutilized, redundant, or outdated applications. Engage with department heads to understand which tools are essential and which can be retired. By auditing your SaaS stack quarterly or biannually, you can optimize costs and ensure your tools align with business goals.
With multiple employees accessing various SaaS tools, managing permissions is crucial to maintaining security and compliance. Granting excessive access can lead to data breaches or accidental misuse of sensitive information.
Best Practice:
Adopt role-based access control (RBAC) to ensure employees only have access to the tools and data they need for their roles. Regularly review and update permissions, especially when employees change roles or leave the company. This minimizes security risks and ensures compliance with data protection regulations.
Many businesses overpay for SaaS subscriptions due to poor contract negotiation or lack of awareness about pricing tiers. With SaaS providers offering flexible plans, there’s often room to negotiate better deals.
Best Practice:
Before renewing or purchasing a SaaS subscription, analyze your usage data to determine if you’re on the right plan. Reach out to vendors to negotiate discounts, especially if you’re a long-term customer or planning to scale usage. Bundling multiple tools from the same provider can also lead to cost savings.
Adopting a new SaaS tool is only effective if employees actively use it. Low adoption rates can result in wasted resources and missed opportunities for productivity gains.
Best Practice:
Track usage metrics to identify which tools are being utilized and which are not. Provide training and resources to help employees adopt new tools effectively. If a tool consistently shows low adoption despite efforts, consider replacing it with a more user-friendly alternative.
SaaS applications often handle sensitive business data, making them a prime target for cyberattacks. Additionally, businesses must comply with regulations like GDPR, HIPAA, or CCPA, depending on their industry and location.
Best Practice:
Work with your IT and security teams to evaluate the security measures of each SaaS provider. Ensure they offer features like data encryption, multi-factor authentication (MFA), and regular security updates. Additionally, maintain a compliance checklist to ensure all tools meet regulatory requirements.
Without clear policies, SaaS management can quickly become chaotic. A governance framework ensures consistency in how SaaS tools are selected, implemented, and managed across the organization.
Best Practice:
Create a SaaS governance policy that outlines:
Assign a dedicated SaaS manager or team to oversee governance and ensure adherence to these policies.
Manually managing SaaS applications can be time-consuming and prone to errors. Automation can streamline repetitive tasks, such as provisioning and deprovisioning users or tracking license usage.
Best Practice:
Use automation tools to handle routine SaaS management tasks. For example, automate user onboarding and offboarding processes to ensure employees have the right access from day one and lose access immediately upon departure. This not only saves time but also enhances security.
SaaS management isn’t just an IT responsibility—it requires input from all departments. Marketing, sales, HR, and other teams often have unique needs and preferences when it comes to SaaS tools.
Best Practice:
Foster collaboration between departments to ensure SaaS decisions align with overall business objectives. Regularly communicate with stakeholders to gather feedback on existing tools and identify emerging needs. This collaborative approach ensures your SaaS stack supports every team effectively.
As your business grows, your SaaS needs will evolve. Planning for scalability ensures you can adapt to changing requirements without disrupting operations.
Best Practice:
Choose SaaS tools that offer flexible pricing and features to accommodate growth. Work with vendors to understand how their solutions can scale with your business. Additionally, regularly review your SaaS strategy to ensure it aligns with your long-term goals.
Effective SaaS management is no longer optional—it’s a necessity for businesses looking to thrive in 2023 and beyond. By implementing these best practices, you can optimize costs, enhance security, and ensure your SaaS tools drive maximum value for your organization.
Remember, SaaS management is an ongoing process. Regularly review your strategy, stay informed about emerging trends, and adapt to the evolving needs of your business. With the right approach, you can turn SaaS management into a competitive advantage.
Ready to take control of your SaaS ecosystem? Start by conducting a comprehensive audit of your current tools and implementing a centralized management platform. The sooner you act, the sooner you’ll see the benefits of streamlined SaaS management.