With the cloud software market having doubled between 2014 and 2020 and estimated to be at 157 billion U.S. dollars in size in 2020, many organizations are already facing the issue of lack of Saas overview, uncontrolled risks, unmanaged SaaS costs and duplicate subscriptions paid for.
While time ago software used company-wide was managed exclusively by IT, nowadays, being affordable, easy to download and use, SaaS licenses can easily get purchased by employees themselves. And this often happens without even checking out whether or not another employee or department has already signed up for the same tool.
The quick and easy SaaS signup, based on low monthly costs has resulted in a situation where no one is aware of the entire stack of tools that a company is paying for and a there is a complete lack of reliable SaaS overview.
Technology advancements have resulted in an ever increasing availability of tools for the digital workspace. They are usually easy to onboard and then scale upwards, and are possible to acquire at an affordable cost. SaaS tools are quite flexible and pose fewer requirements compared to the on-premise software, enabling the employee to act individually and obtain them independently.
However, the easy access to SaaS tools poses some disadvantages for organizations, and SaaS duplicate subscription is one of them. This duplication happens when an employee(s) purchases a license for a tool that has already been signed up for by another employee from the organization.
With more than 1/3rd of apps being purchased by employees themselves and a workforce that becomes more distributed, the occurrence of duplicate subscriptions is no longer an exception, but rather pretty likely to happen.
This is particularly common with applications that are used daily, by many people in the organization - like Dropbox and Adobe acrobat for example. With monthly cost at €9.99 and €15,59/m, they are quite affordable for individual employees who can then get the cost expensed. If the software purchase is not centralized and accounted for by the IT department or another responsible person, this person can hardly understand before purchasing that the organization may have already subscribed for a favorably priced enterprise license, with many free seats still available. The result? Many duplicate subscriptions coming at a higher per-user cost, and SaaS costs that quickly add up.
The most evident problem with unnecessary, duplicated SaaS licenses are the financial costs. But there are many other disadvantages as well:
When the SaaS end-user license agreement is signed by an employee, the terms of service are generally way less favorable for the buyer compared to enterprise license agreements.
Businesses are already starting to realize the need to effectively manage their SaaS licenses. But few of them are aware how to do it. Here are the steps we at Oveo would suggest:
Removing the duplicate SaaS subscriptions requires collaboration from every team in your organization and clear explanation on the reason behind the software review and benefits to be reaped.
A first step would be identifying the person or team responsible for signing up every SaaS subscription. You need to inquire with the employee/team about the reason for purchasing it and contract terms they committed to. Then, clarify the price, payment terms and how they purchased the subscription - using a corporate payment method, or by expensing it. Finally, find out whether or not the functionalities offered by this tool overlap with features offered by another SaaS software subscribed to by the organization.
If there is overlapping in the features offered by two or more SaaS tools, evaluate them based on price, functionality, license agreement terms, etc. For the ones that look the same, try negotiating with the SaaS provider for an enterprise-level subscription that includes lower cost per seat, extra functionalities, better contract terms and improved support terms. Based on the offers received, make the final decision on the duplicate SaaS subscription to get rid of.
To make sure your efforts were not done in vain, set up a SaaS review process and make sure it is getting executed on a regular basis. Or, use a SaaS management software to perform the SaaS discovery and usage, to detect duplicate SaaS and identify possible cost savings.
SaaS tools are definitely helping to increase employee efficiency, but they also lead to shadow IT, increased SaaS spend, security and compliance issues. By using a SaaS subscription management platform like Oveo, organizations can:
Looking to find out more on how Oveo can help to optimize the SaaS management process for your own organization? Schedule a personalized demo!