SaaS vendor management 101 | BetterCloud

SaaS has revolutionized how we work, but let’s be honest, managing all those subscriptions can feel like juggling flaming torches. You’re dealing with contracts, security concerns, and costs that seem to spiral out of control.

This blog is your guide to conquering SaaS chaos. We’ll cut through the jargon and provide practical advice on everything from discovering and onboarding new vendors to optimizing costs and ensuring security. Whether you’re a seasoned sysadmin or just starting to dip your toes into the SaaS world, we’ve got you covered.

So, what is SaaS vendor management?

SaaS vendor management is the comprehensive process of overseeing and managing relationships with third-party software vendors that provide cloud-based services to your organization.

Think of it like being the quarterback of your company’s software.

You’re responsible for:

• Calling the plays: Deciding which software to use and how to use it effectively.
• Negotiating the contracts: Getting the best deals and making sure you’re covered.
• Managing the field: Troubleshooting problems, ensuring smooth integration, and keeping the whole team on the same page.
• Staying ahead of the game: Keeping up with the latest security threats and ensuring compliance.

Essentially, you’re the go-to person for everything related to SaaS, making sure it all runs smoothly and delivers value to the business.

Why SaaS vendor management matters

Keeping track of all your SaaS subscriptions can feel like a never-ending game of whack-a-mole. But trust me, good SaaS vendor management isn’t just about saving money (though that’s a BIG plus!). It’s about sanity. 

Imagine easily finding the right tool when you need it, knowing exactly what you’re paying for, and avoiding those pesky duplicate subscriptions. Plus, good management helps you choose the right tools in the first place, boosting your team’s productivity and making your work life a whole lot smoother.

According to BetterCloud data:

• About 30% of software is underutilized,
• 25% of tools have overlapping functionality
• About 18% of those tools have a low satisfaction rating

Effective SaaS vendor management addresses these issues by:

• Improving visibility: Gaining a clear understanding of all your SaaS subscriptions, their usage, and associated costs.
• Mitigating vendor risks: Identifying and addressing potential security threats, data breaches, and compliance issues associated with each vendor.
• Improving your ROI on your tech stack: Optimizing software spending by identifying and eliminating unnecessary subscriptions, negotiating better deals, and ensuring optimal utilization of existing tools.
• Effective app rationalization: Streamlining your tech stack by identifying and removing redundant or underutilized applications.
• Proactive renewal management: Staying on top of subscription renewals to avoid unexpected costs and ensure you’re getting the best possible value.
• Reducing IT admin burden: Automating many of the manual tasks associated with SaaS management, freeing up IT teams to focus on more strategic initiatives.

Best practices for successful SaaS vendor management

Successful SaaS vendor management hinges on a proactive and collaborative approach.

Define buying process

Say goodbye to rogue software purchases! Define what the organization and the end user needs, set a budget, and involve the right stakeholders. Research thoroughly and consider factors like security and integrations.

Set clear expectations with vendors

Don’t just sign on the dotted line. Clearly communicate your SLAs, performance expectations, and how issues will be addressed. Regular check-ins are key – make sure they’re delivering on their promises.

Ask whether the vendor is of cost-benefit to you

While the right software could help your team, it’s important to measure the ROI of the software.

By measuring key performance indicators (KPIs) like increased productivity, reduced costs, and improved customer satisfaction, you can quantify the value of your SaaS solutions.

Additionally, consider the long-term benefits, such as scalability, flexibility, and potential cost savings over traditional software licenses. A well-chosen SaaS solution can provide a significant competitive advantage, so it’s important to weigh the initial costs against the potential long-term rewards.

Assign owners for every app

Assigning owners for every application not only fosters accountability, but ensures proper utilization.

They’re your go-to person for questions and troubleshooting. Plus, it keeps things organized and prevents duplication of effort.

Stay on top of renewals

Unexpected costs are the worst. Set reminders, negotiate proactively, and always explore alternatives.

The software landscape is constantly changing.

Keep contracts in one place

Nobody likes hunting for lost paperwork. Centralizing contract storage in a secure and easily accessible repository streamlines access and ensures compliance. Not to mention the countless hours saved spent searching for roaming contracts.

By implementing these practices, organizations can optimize SaaS investments, mitigate risks, and ensure that vendors deliver value consistently.

Keep track of SaaS spending

With no visibility into your company’s SaaS spending, shelfware and duplicate subscriptions run rampant. 

Investing in an insights-driven vendor management platform not only enhancing your management capabilities, but supercharges them.

• Software contract benchmarking: Ever wonder at renewal if you’re paying the best price? Keeping benchmarking data in your back pocket allows you to negotiate effectively.
• Overlapping software: Duplicate tools in your tech stack can be hard to pinpoint unless you know what every application does. With BetterCloud, you can instantly highlight software overlaps and save quickly.
• Usage metrics: A SaaS Spend Management Platform like BetterCloud provides valuable insights into software usage at the employee level. This allows you to identify underutilized tools, reclaim unused licenses, and optimize your software spending.

Take your SaaS vendor management to the next level

BetterCloud is an all-in-one platform that can help IT effectively manage their SaaS landscape. With features such as automated discovery, usage analytics, and proactive risk management, BetterCloud can help you gain control of your SaaS spending, improve security, and optimize your tech stack.

By implementing effective SaaS vendor management practices and leveraging the right tools, businesses can maximize the value of their software investments, improve operational efficiency, and gain a significant competitive advantage. Ready to take your vendor management to the next level? Book a demo.