In today’s fast-paced digital landscape, Software-as-a-Service (SaaS) solutions have become the backbone of modern businesses. From streamlining workflows to enhancing collaboration, SaaS tools empower organizations to stay competitive and agile. However, with the growing adoption of SaaS applications comes the challenge of managing them effectively. 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 into the tools your organization is using. Employees often sign up for new applications without IT approval, leading to "shadow IT." This can result in redundant tools, wasted budgets, and security risks.
Best Practice:
Invest in a SaaS management platform (SMP) to centralize the discovery, monitoring, and management of all SaaS applications. These platforms provide a single dashboard to track usage, costs, and compliance, giving you full visibility into your SaaS ecosystem.
SaaS sprawl is a common issue, with organizations often paying for unused or underutilized subscriptions. Regular audits can help identify which tools are delivering value and which are not.
Best Practice:
Perform quarterly or biannual SaaS audits to evaluate application usage, eliminate redundant tools, and renegotiate contracts. Engage department heads to ensure the tools align with business needs and goals.
With multiple employees accessing various SaaS tools, it’s crucial to ensure that permissions are granted based on roles and responsibilities. Over-permissioned accounts can lead to data breaches and compliance violations.
Best Practice:
Adopt role-based access control (RBAC) to limit access to sensitive data and features. Regularly review and update permissions as employees change roles or leave the organization.
SaaS subscriptions can quickly become a significant expense if not managed properly. Many organizations overpay for licenses they don’t use or fail to take advantage of volume discounts.
Best Practice:
Track SaaS spending closely and identify opportunities to consolidate tools or negotiate better pricing. Consider annual billing instead of monthly to save on costs, and leverage usage data to ensure you’re only paying for what you need.
SaaS applications often handle sensitive business data, making compliance and security a top priority. Failing to meet regulatory requirements or secure your data can lead to costly fines and reputational damage.
Best Practice:
Work with your IT and legal teams to ensure all SaaS tools comply with industry regulations like GDPR, HIPAA, or SOC 2. Use single sign-on (SSO) and multi-factor authentication (MFA) to enhance security and reduce the risk of unauthorized access.
Employee turnover can create gaps in SaaS management if access to tools isn’t properly managed. Former employees with active accounts pose a significant security risk.
Best Practice:
Develop a standardized process for onboarding and offboarding employees. Use automated workflows to provision and deprovision access to SaaS tools, ensuring that only active employees have access to critical systems.
SaaS management isn’t just an IT responsibility—it requires collaboration across departments. Business teams often have unique needs, and IT teams must work closely with them to ensure the right tools are in place.
Best Practice:
Create a cross-functional SaaS management committee that includes representatives from IT, finance, and key business units. This ensures alignment on tool selection, budgeting, and usage policies.
Understanding how your team uses SaaS tools is key to optimizing their value. Usage analytics can reveal adoption rates, feature utilization, and areas for improvement.
Best Practice:
Use analytics tools to track user engagement and identify training opportunities. If adoption is low, consider offering workshops or tutorials to help employees get the most out of the tools.
As your business grows, your SaaS needs will evolve. Planning for scalability ensures that your tools can support your organization’s growth without causing disruptions.
Best Practice:
Choose SaaS solutions that offer flexible pricing models and can scale with your business. Regularly review your tech stack to ensure it aligns with your long-term goals.
The SaaS landscape is constantly evolving, with new tools and features emerging every year. Staying informed about industry trends can help you make smarter decisions and stay ahead of the competition.
Best Practice:
Follow SaaS industry blogs, attend webinars, and network with peers to stay updated on the latest innovations. Consider adopting AI-powered SaaS tools to automate repetitive tasks and improve efficiency.
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 reduce costs, enhance security, and ensure your SaaS tools are driving real value for your organization.
Start by auditing your current SaaS stack, centralizing management, and fostering collaboration across teams. With the right strategies in place, you’ll be well-equipped to navigate the ever-changing SaaS landscape and achieve your business goals.
What’s your biggest challenge with SaaS management? Share your thoughts in the comments below!