In 2022, SaaS accounted for 70% of company software usage, with this number projected to rise to 85% by 2025 . With such a significant proportion of software being SaaS-based, effective management and cost optimisation is essential.
To help, we have developed the 5 R's for SaaS cost optimization, building on Gartner's 5 R's for migration and our own 6 R's for maximizing cloud spend.
1. Re-evaluate – Discover & Assess.
Do you have the right tech to detect and compile data on usage of app licenses, to effectively manage your SaaS? Can you forecast demand based on Joiners, Movers & Leavers (JML) and make more strategic purchasing decisions? Then finally, do you know who is using apps and where the data is held? Knowing the answers to all of this can result in significant potential cost savings.
2. Restrict – use accurately and efficiently.
Do you have several apps achieving the same goals within your business? Perhaps you picked up Teams during the pandemic but also have other IM tools. Do you have Zombie Apps that are redundant but still taking your money? Do any high risk or unauthorised apps operate in your network and can you remove access to apps outside of your chosen SSO? All these actions give the control back to you.
3. Right-Size – your SaaS estate.
Are you paying for premium licenses when some of your users only need basic functionality? Reconsidering the licensing levels you purchase for each app and streamlining usage, can help reduce unnecessary spending.
4. Reshape – how you buy SaaS.
Do you use curated marketplaces or stores? Can you consolidate your buying, forecasting spends and improving your budget plans? Are licensing costs aligned to the right cost centres within your organisation? Do you need to consider charge back? Marketplaces can help you bring together unique license purchases, for a more powerful position to negotiate the cost.
5. Rule – your SaaS operations.
Can you improve workflows between deployment and SaaS provisioning? Do you need an App approval process? Do users have a good onboarding experience? Are all users offboarded? And how do you set rules around SaaS use based on security posture?
Managing SaaS, providing cost savings, maximising license utilisation and reducing risk is a big task. The above might feel like too much to add to your plate right now, and it’s understandable!
Softcat has good news for you, as we offer a SaaS Discovery and Optimization Assessment Service to help you get started, as well as a SaaS Support Service to help you stay proactive, maintain control, and feel confident about your SaaS estate.
Speak to your Softcat Account Team to schedule a discussion with one of our experienced specialists, who can provide valuable assistance and support in finding the best solution to help you take control of your SaaS. Alternatively contact us here.