International corporations already have hundreds of software applications (marketing, HR, management, accounting, etc.) listed. It was foreseeable that the need for a software management solution, or SaaS Management, capable of managing all these applications would quickly arise! Let's take a look at the key issues related to this topic.
SaaS Management: How Did We Get Here?
The famous quote by Marc Andreessen, "Software is eating the world," has never been more relevant.
SaaS (Software as a Service) applications have proliferated within companies, simplifying the acquisition of solutions for various departments such as marketing, digital, and communication.
According to a study by Chiefmartec.com, the average company uses about 120 marketing tools. This surge in software usage has created a demand for SaaS Management tools capable of managing all these applications. In this article, we explore SaaS Management tools, processes, and use cases that are emerging across different departments, including marketing, digital, procurement, and IT.
What is SaaS Management?
SaaS Management is the practice of cataloging all SaaS applications used within an organization to ensure their optimal management. At Saas Advisor, we believe this approach will become increasingly important as it allows different stakeholders (business, IT, legal, procurement) to rationalize their approach during the acquisition and deployment of solutions.
SaaS Management involves having a comprehensive system for cataloging all SaaS applications within an organization. However, it goes beyond that. It also includes cataloging providers, licenses, users, budget lines, and ensuring that the collected data complies with regulations and that vendors meet IT security requirements.
While a SaaS Management approach requires technology (specifically, software capable of automatically identifying all SaaS applications), it also necessitates human intervention to interpret the results and make informed optimization decisions.
Why Adopt a SaaS Management Approach?
Combating Shadow IT
The process of cataloging can be time-consuming and costly. International groups can have hundreds of SaaS applications, with their number increasing by about 30% annually. SaaS Management providers often report that over 50% of solutions are not cataloged by IT and compliance teams, leading to "Shadow IT." This can result from individual initiatives, such as purchasing licenses for a few users that fly under the procurement radar.
Avoiding Turnover
According to the Martech Replacement Survey 2020 by Martech Today, 83% of marketing professionals changed at least one of their marketing tools in the past year, with more than a third of solutions being replaced annually. Beyond the budgetary implications (licenses, implementation, configuration, training), changing tools can also demotivate teams. SaaS Management helps identify these changes and is a first step towards anticipating and mitigating these issues.
Creating a Roadmap
SaaS Management solutions should help, if necessary, realign an organization’s tool strategy and policy. They enable the creation of a roadmap to regulate the introduction of new tools and answer essential questions:
- Does it meet operational and strategic needs?
- Is it a "Must Have" or a "Nice to Have," addressing core business issues?
- Does the organization have the resources to utilize a new tool?
- How is data collected and where is it stored?
- How will the tool integrate into the existing stack?
- Does the vendor have proven case studies? What are their support, onboarding, and development capabilities?
Main Uses and Relevant Departments
For Business Units: Clarify and optimize use cases. Marketing, digital, and communication departments need processes that make tools, data, and collaboration as efficient as possible. Tools should be allies, saving time and fitting identified needs while avoiding duplication.
For Procurement: Measure organizational expenditure on tools for better management. This includes license costs, onboarding costs (implementation, configuration, training), and project follow-up. Additionally, managing renewal schedules is crucial.
For IT/DSI: Detect all solutions actually used in the organization. Our experience shows that the number of tools used is often three to four times higher than anticipated by IT. SaaS Management software creates a repository providing answers to security questions, such as data hosting locations.
For Legal: Assess vendors based on their compliance with various laws (e.g., GDPR) and regulations, ensuring reduced risk of breaches and fines.
For HR: Automate onboarding and offboarding of employees on technologies. These tools automate license allocation and withdrawal for employees by job role or department.
Key Players in the Market
Among the historical players in SaaS Management (a market that has existed for only 3 or 4 years), we can mention Blissfully, G2Track (Siftery acquired by G2crowd), Intello, Zylo, Toriihq, and Beamy, a French player we interviewed a few months ago.
The market is rapidly expanding, with several new entrants in France recently, including Chaos, LicenceOne, Mesh, Youzer, Sublim.io, and SaasDesk.
Given the youth of this sector, SaaS Management providers are seeking their "Product Market Fit," adjusting their products to meet the diverse client needs mentioned earlier. Initially, they focus on one scenario or a specific user population (IT, procurement, or business units), creating functionalities that address one of the key challenges.
The broadening of functional capabilities is anticipated, and the evolution of these providers will be closely monitored in the coming months (or years) to meet the needs of all stakeholders and expressed requirements. How will the SaaS Management market evolve? We will be following this closely!
Expected ROI from a SaaS Management Mission
As discussed, the goals and objectives of such missions can be very diverse.
For both business units (marketing, digital, communication) and IT or procurement, SaaS Management helps rationalize tool strategy: achieving substantial savings, better data compliance, and improved inter-team processes.
In a cost rationalization perspective, a SaaS Management mission typically has a very high ROI. Having a complete picture of the tools used can save numerous expense lines by reducing the number of similar tools (frequent duplications), establishing framework contracts, or renegotiating contracts with costs that are "out of market practice."
At SaaS Advisor, we have several successful SaaS Management missions with large groups and work with various market providers. Want to know more? We would be delighted to present our client cases.
Want to read more on another topic?
Check out our interview with Beamy, a leading SaaS Management solution!
