SaaS has fundamentally changed how businesses operate. The agility and innovation it offers are unmatched, but with great power comes great responsibility, right? While these tools are easy to adopt, managing them is no walk in the park. Shadow IT, unmonitored spending, and security gaps are just a few of the headaches SaaS introduces when left unchecked. And it’s backed up by research: 37% of IT professionals in the Flexera 2024 State of ITAM Report flagged software optimization as a major challenge.
The issue boils down to complexity. IT departments struggle to track who’s using what, how much it’s costing, and the potential security risks involved. When SaaS proliferates unchecked, you’ve got a recipe for inefficiency and exposure. The solution? Fold SaaS oversight into your broader IT and asset management systems. Think of it as creating one unified dashboard for every piece of software in your ecosystem. Without it, you’re flying blind, and no executive likes that.
Improving visibility into SaaS usage is key
If you can’t see what’s happening in your SaaS stack, you can’t control it. Unsanctioned apps (what we call shadow IT) are a major problem. Employees are drawn to these tools because they’re easy to try, often bypassing IT in the process. The result? You don’t know how much is being spent, what data might be exposed, or whether the tools meet compliance standards.
A robust SaaS management platform can be a huge help here. Offering a clear view of both approved and rogue applications, these systems help eliminate blind spots and mitigate risks. Even once you’ve found the apps, you still need detailed, normalized data.
Visibility also saves money. Analyzing high-spend vendors like Salesforce or ServiceNow, companies can optimize contracts, reclaim unused licenses, and cut redundancy. Tracking shadow IT usage often finds the tools employees genuinely need, like generative AI services (e.g., ChatGPT or Microsoft Copilot). That insight helps align budgets with productivity goals. It’s a win-win.
Assign ownership of SaaS responsibilities
If no one owns SaaS management, no one will take responsibility for its failures. When responsibilities are fragmented, inefficiencies creep in, overspending runs rampant, and security risks multiply. It’s as much a business problem as it is an IT problem.
The solution lies in assigning a dedicated team to govern SaaS procurement and usage. Think of them as the sheriffs of your software ecosystem, tasked with rationalizing applications, minimizing risks, and consolidating contracts. This team should be empowered to provide clarity on total cost of ownership (TCO), extending beyond license fees to include factors like maintenance and integration costs.
When stakeholders are educated about the true cost and risks of SaaS, you get buy-in across the board. Collaboration becomes smoother, and siloed purchases decline. Some key moves for your SaaS team might include:
- Identify redundant applications to cut costs.
- Block non-compliant software before it becomes a liability.
- Make sure configurations for all SaaS tools are secure to prevent breaches.
- Streamline contracts and negotiations to maximize value.
Establish strong SaaS governance
Poor SaaS governance leaves organizations exposed to everything from overspending to regulatory violations. Strong governance, on the other hand, addresses these challenges head-on.
First, figure out why shadow IT exists in your company. Most employees adopt unauthorized tools because their needs aren’t being met. Understanding this can help you provide the right solutions through approved channels. Next, eliminate siloed purchasing. When departments act independently, costs skyrocket, and risks multiply.
Standardizing your vendor evaluation process is another must. Build a scoring system that prioritizes reliability, encryption, and data protection. Even if an employee bypasses central IT, you’ll have guardrails in place to limit exposure. Finally, make compliance with data privacy laws non-negotiable. A single violation can cost millions and destroy your brand’s reputation.
Your governance approach mustn’t focus on control for the sake of control. Instead, work to create an environment in which SaaS tools work for your organization, not against it.
Success relies on visibility, collaboration, and strategic management
The golden rule of SaaS management? Visibility is a must. If you can’t see how applications are being used, you’re leaving money and security on the table. Start with a clear map of your SaaS stack, identifying risks and opportunities.
Collaboration is equally important. IT can’t manage SaaS in isolation; business leaders need to be part of the process. Together, they can rationalize software use, cutting waste while boosting efficiency. When savings and productivity gains are documented, it’s easier to showcase the value of these efforts to the leadership team.
To succeed, focus on actionable steps like:
- Using accurate data to negotiate better licensing terms.
- Consolidating redundant contracts to save money.
- Communicating successes—like cost reductions or risk mitigation—to stakeholders.
The key takeaway here? SaaS is more than a cost center; it’s also a strategic asset. Manage it wisely, and you’ll tap into savings, security, and growth opportunities that benefit the entire organization.
Final thoughts
Are you managing your SaaS tools, or are they managing you? In a market where software choices define how fast you can innovate, staying blind to waste, risks, and inefficiencies is no longer an option. It’s time to think bigger—streamline your SaaS strategy, align your tools with your vision, and turn every app into a lever for growth.
