SaaS operations management guide | BetterCloud

Picture this: it’s 3AM, and your phone is buzzing. Not with a server fire, but with a cascade of support tickets. Users are screaming about needing to reset their password in your company’s CRM, and after frantic work, you’ve made it through half of the tickets before more come in. Sound familiar?

With just about every company now running on SaaS, managing software applications has evolved from simple license tracking to a complex orchestration of integrations, performance monitoring, security, and cost optimization. For IT professionals, this shift presents a unique set of challenges.

This guide is designed to cut through the noise and provide you with actionable strategies to tame the SaaS chaos. We’ll dive deep into best practices, essential tools, and the critical processes needed to ensure your SaaS ecosystem is not just functional, but a driving force for your organization’s success.

What is SaaS operations management?

SaaS operations management, also known as SaaSOps, is the practice of effectively managing and optimizing an organization’s use of software applications.

SaaSOps management encompassed a range of processes and strategies aimed at:

• Gaining visibility and control in an organization’s SaaS environment
• Optimizing software costs
• Enhancing security and compliance
• Improving operational efficiency

Understanding the SaaS procurement process

Managing SaaS applications effectively requires understanding the distinct stages they move through, from initial consideration to eventual retirement. This lifecycle approach allows for proactive planning and optimization, ensuring you maximize value and minimize risks. Let’s break down the key phases:

Stage 1: Research and needs assessment

This first stage is about identifying the gaps in your current operations and exploring how SaaS solutions can bridge them.

• Identifying business needs and potential SaaS solutions: Start by thinking about what’s bugging you at work. Is it dealing with customers, keeping projects on track, or trying to make sense of your data? Getting clear on these pain points helps you find the right SaaS tools.
• Evaluation criteria and vendor selection: Make a list of what’s important to you – things like features, price, security, and whether the company seems reliable. Try out a few demos and see what other people are saying. This helps you choose the tool that’s the best fit for your team.

Stage 2: Procurement and onboarding

Once you’ve chosen a SaaS solution, the focus shifts to securing it and integrating it into your environment.

• Contract negotiation and vendor management: Carefully review the contract terms, including pricing, service level agreements (SLAs), and data security provisions. Negotiate favorable terms and establish a clear communication channel with the vendor.
• User provisioning and access control: Implement a secure and efficient user provisioning process. Define user roles and permissions, and ensure timely access to the application. Leverage Single Sign-On (SSO) and Multi-Factor Authentication (MFA) to bolster security.
• Integration with existing systems: Seamless integration with existing systems, such as CRM, ERP, or HR platforms, is crucial for maximizing efficiency. Plan and execute integrations carefully to avoid data silos and workflow disruptions.

Stage 3: Manage users usage and optimization

This stage is the longest and one that SaaSops professionals are used to in terms of traditional SaaS management.

• User management: The employee onboarding and offboarding process occurs throughout the year depending on your organization’s hiring tendencies. IT plays a key role in ensuring end users receive access to the right applications at the right time.
• Monitoring usage and performance metrics: Track key performance indicators (KPIs) such as user adoption, application performance, and data usage. Utilize analytics dashboards to gain insights into how the application is being used.
• Identifying underutilized or redundant applications: Regularly audit your SaaS portfolio to identify applications that are underutilized or redundant. This helps eliminate unnecessary costs and streamline your technology stack.
• Cost optimization strategies: Implement cost optimization strategies such as right-sizing licenses, negotiating volume discounts, and leveraging usage-based pricing models. Continuously monitor spending and identify opportunities for savings.

Stage 4: Renewal and offboarding

Eventually, every SaaS application reaches the end of its lifecycle. This stage focuses on managing renewals or gracefully retiring the application.

• Renewal negotiations and contract management: Proactively manage renewal dates and engage in negotiations with vendors to secure favorable terms. Review performance data to determine if the application continues to meet your needs.
• Data migration and application decommissioning: Plan and execute data migration and application decommissioning carefully to minimize disruption. Ensure data is securely migrated or archived, and that the application is properly decommissioned.
• License reclamation: When offboarding, ensure that all licenses that are no longer needed are reclaimed. This prevents unnecessary spending, and ensures that the correct number of licenses are being paid for at all times.

SaaS discovery: You can’t manage what you don’t see

The first step in SaaS management? Figuring out exactly what you’re working with. Most organizations have more SaaS apps running than they realize. Employees sign up for tools using their work email, teams onboard new software without IT’s approval, and before you know it, shadow IT creeps in.

Tools and techniques for identifying SaaS applications

Finding all the SaaS tools in your environment isn’t as easy as running a simple report. But a few key methods can help.

• SSO & identity providers: Single sign-on and IDPs like EntraID offer insights into what apps users are logging into.
• Expense reports & credit card statements: A quick audit of software-related expenses can surface unexpected tools.
• Browser extension & network monitoring: Some solutions scan web traffic to detect unauthorized SaaS usage.
• SaaS Management Platforms (SMPs): Tools like BetterCloud automatically track app adoption and usage – often using a combination of the above three tools to get full visibility into your tech stack.

Keeping a tight inventory: Because spreadsheets won’t cut it

Once you’ve got a list, maintaining an accurate inventory is the next challenge. And no, a shared spreadsheet isn’t the answer.

A centralized SaaS inventory should include:

• Application name & purpose
• User count & assigned roles
• License details (cost, type, renewal date)
• Security & compliance status

SMPs make this easier by continuously monitoring app usage and flagging anomalies, so you’re not left chasing down licenses when budgets get tight.

User and license management: No more orphaned accounts

Every IT admin knows the pain of inactive users holding onto expensive licenses. And it’s not just about cost, it’s a security risk, too.

The smarter way to handle user provisioning and de-provisioning

Manually adding and removing users? That’s a recipe for human error. A better approach is to:

• Automate provisioning through identity providers: Set up automated workflows to assign users the right tools on day one.
• Enforce de-provisioning policies: When an employee leaves, their accounts should be revoked immediately (no lingering access!).
• Enable Role-Based Access Control (RBAC): Not everyone needs admin rights. Assign roles based on job functions to limit exposure.

License optimization: Stop paying for what you don’t need

Unused licenses quietly drain budgets. Tracking utilization and reallocating licenses can significantly cut costs. Tools like BetterCloud help by identifying underused licenses and automatically revoking them if they’re inactive for a set period.

Cost management: shadow IT, we see you

Wasted SaaS spend isn’t just about unused licenses—it’s also about redundant tools and forgotten renewals.

Steps to optimize SaaS costs

• Consolidate duplicate tools: Does your org really need five different project management apps?
• Audit renewals: Auto-renewals sneak up fast. Set alerts for upcoming contract reviews.
• Use usage-based pricing where possible: Some vendors let you pay based on actual usage instead of fixed licenses.

Security and compliance: locking down your SaaS stack

SaaS security is more than just enabling MFA. Compliance requirements like GDPR and HIPAA add complexity, and without proper controls, sensitive data can easily slip through the cracks.

How to strengthen SaaS security

To fortify SaaS security, organizations should automate security audits for regular review of permissions, integrations, and access logs. Critically, monitoring third-party app connections is essential as employees often link personal tools to work accounts, introducing security risks. 

Enforcing strict data policies is also vital to prevent unauthorized file sharing and data exfiltration.

SaaS automation: Less work, more control

SaaS automation offers increased efficiency, freeing IT teams for strategic tasks while reducing manual errors through automated onboarding, offboarding, and license management. 

Crucially, automation enhances security by automatically revoking access upon employee departure and drives cost savings through optimized license allocation, eliminating waste.

High-impact automation use cases

High-impact automation use cases include user onboarding and offboarding, precise license provisioning and de-provisioning, automated security alerts and incident response for proactive risk mitigation, and streamlined SaaS spend workflows with automated renewal approvals.

The right tools for the job: SMPs & iPaaS

Effective automation requires the right platforms: SaaS Management Platforms (SMPs) like BetterCloud for IT management and security, and Integration Platform as a Service (iPaaS) tools for connecting applications and streamlining workflows. Implementing SaaS automation should begin with identifying high-impact, low-effort wins, such as offboarding automation. 

Continuous monitoring of automated workflows is essential to address edge cases and refine processes. Above all, security must be integrated from the outset, with automated access controls preventing unauthorized data exposure.

Best practices for effective SaaS operations management

Establish clear policies and procedures

Documentation may not be the most thrilling part of the job, but it’s crucial for long term success. Think of it as creating a playbook for your team.

• Documented processes for each stage of the SaaS lifecycle: From onboarding to offboarding, have a clear, step-by-step guide. This eliminates guesswork and ensures consistency. You know, “if this, then that” kind of stuff.
• Guidelines for user access and data security: Who gets access to what? How do we keep our data safe? Lay it all out. Strong access controls and data encryption are non-negotiable. Don’t leave this to chance!

Foster collaboration between IT and business teams

SaaS management isn’t a solo gig; it’s a team sport, requiring a coordinated effort from all stakeholders. 

Think of it as a relay race, where each team member plays a crucial role in ensuring a smooth and efficient process. IT brings technical expertise, ensuring security and integration, while business teams provide insights into usage patterns and needs. This collaborative approach fosters a shared understanding of SaaS goals and challenges, leading to more informed decision-making. 

Regular cross-functional meetings, shared dashboards, and open communication channels are essential for maintaining alignment and addressing issues promptly. By working together, IT and business teams can optimize SaaS usage, control costs, and maximize the value derived from these applications.

Leverage data and analytics

Data is your friend. It tells you what’s working and what’s not.

• Track key performance indicators (KPIs) for SaaS usage and cost: How much are we spending? Are we actually using all those licenses? Track metrics like user adoption, license utilization, and cost per user.
• Use data to identify areas for optimization: Data helps you pinpoint inefficiencies. Maybe you’re paying for unused licenses, or maybe a certain app isn’t delivering the value you expected. Let the data guide your decisions.

Continuous monitoring and improvement

SaaS is a moving target. What works today might not work tomorrow.

• Regularly review and update SaaS management processes: Don’t set it and forget it. Conduct regular audits of your SaaS portfolio. Review your policies and procedures. Are they still relevant? Are there any gaps?
• Stay up-to-date on new SaaS trends and technologies: The SaaS world is constantly evolving. Keep an eye on new tools and best practices. Attend webinars, read blogs (like this one!), and network with other IT pros.

By implementing these best practices, you’ll be well on your way to mastering SaaS operations management. You’ll reduce costs, improve efficiency, and keep your business running smoothly. And remember, it’s an ongoing process. Keep learning, keep adapting, and keep those systems humming!

BetterCloud is your SaaS operations management friend

BetterCloud is the only unified SaaS lifecycle management platform that helps organizations manage, secure, and govern SaaS applications organization-wide. Designed for IT and finance leaders, Bet5terCloud helps manage users, automate workflows, reduce shadow IT, mitigate security risks, and optimize SaaS spending.

Ready to bring your SaaS operations management strategy to life? We’re here to help.