What is SaaS spend management?
SaaS spend management is the process of actively discovering, documenting and optimizing software expenses — whether that’s new procurement, renewals, or other subscription costs.
Monitoring and managing these costs is essential if you’re going to maximize the return on investment taken from each app in your portfolio — whether it’s your cloud file storage solution, project collaboration suite or HR platform.
SaaS spend management typically involves:
- Real-time discovery tools
- Portfolio management strategies
- Software negotiation tactics
These practices help to track and reduce the amount that your company spends across its SaaS stack.
The importance of streamlining SaaS spend
Nowadays, the subscription model is the main way that software is purchased — but with so many different apps making up a company’s tech stack, these recurring costs can quickly add up. Thankfully, optimizing SaaS spending offers a host of benefits to the organization looking to stretch its IT budget further.
Firstly, SaaS cost optimization works to eliminate wasted spending. Between duplicated or redundant licenses, under-utilized tools, and forgotten contracts, your software portfolio could be concealing all too many missed opportunities for cost-savings — or at least, that’s until now.
SaaS spend management could also help to highlight any tool use flying under the radar. This is a great method to highlight shadow IT use. When individuals within your organization take it into their own hands to procure unvetted software, there’s an increased risk of poor data security and costly breaches.
Managing your SaaS spend also saves you time. A comprehensive record of each of your SaaS outgoings will illuminate any expenses that you’ve been struggling to explain while auditing your finances — and help to inform future procurement and budgeting decisions.
Optimizing your costs with Vertice could be the difference between a lean stack that works for your business, or a fragmented and unsafe one which quietly drains your money, time, and productivity.
Improve your cost reduction strategy
With SaaS spend optimization, you can take back the power over rising software costs. Discover and gain full visibility over the software in use at your organization, including individual and team licenses, contract terms, and the costs associated with each tool.
Once you’ve gained better visibility, you can make informed decisions about future procurement, renewals, and potential cost-cutting with tool consolidation.
This is how your company can put an end to decentralized procurement and make smarter decisions for your teams and workflows.
- Fight back against soaring SaaS inflation rates
- Prepare a comprehensive SaaS system of record
- Build a coordinated SaaS portfolio
- Optimize your sprawling SaaS stack
- Future-proof your SaaS spending strategy
Vertice can help put an end to your decentralized procurement and support for your team’s decision-making.
Optimize your SaaS spending
Your existing software stack holds untapped potential to reduce your SaaS costs. Discover the different methods that can be used to streamline your SaaS spending and unlock cost savings.
Application rationalization helps to consolidate your SaaS contracts and reduce any unnecessary spending that occurs due to poor procurement practices. You can also uncover and target any instances of duplicate, redundant, and under-utilized SaaS to minimize your wasted spend.
There are savings to be had in your stack, it’s simply a case of knowing where to find these opportunities.
- Rightsize your software stack
- Eliminate cases of redundant SaaS
- Address the problem of SaaS duplication
- Reduce your accumulating tail spend
- Regain control of an unmanaged portfolio
There are cost-saving opportunities in your stack — and our SaaS management platform can help you identify them.
Secure the best deal on new software
When it comes to buying new software, you can reduce the price you pay and secure valuable contract terms for your organization.
The most effective technique is to equip yourself with SaaS vendor pricing benchmarks. This data provides insight into the price points proposed by different SaaS vendors and the discount rates offered to companies similar to your own.
As a result, benchmarks can be used as leverage to secure the best deal for your business. These are used in tandem with other strategies that can deliver savings, like committing to a multi-year contract.
Vertice’s database of pricing benchmarks can be used as leverage to secure the best deal for your business on new software, in tandem with our other competitive strategies that will deliver savings.
Negotiate savings across your stack
Renegotiating your existing software contracts might seem daunting, but it’s one of the most productive ways to trim your SaaS costs.
Vendors employ a range of techniques to ensure a high-value sale, but there are strategies that you can use to reach an agreement that both you and your provider are happy with.
But to guarantee long-term savings, you’ll need to negotiate on more than just price. Learn more about the contract terms to cover in your negotiations here, including auto-renewal clauses, price protection in uplifts, and service-level agreements.
- Learn the most effective software negotiation tactics
- Minimize your RevStack costs
- Learn how SaaS vendors sneakily increase prices
Our expert negotiators can help you to address all of your small-print contract terms, including auto-renewal clauses, price protection in uplifts, and service-level agreements. Cover all your bases during negotiations with Vertice.
Vertice in action
How we recently helped a technology company save big on their SaaS costs.
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Businesses spend over $150 billion annually on SaaS, across more than 15,000 software vendors. The odds are that you’re overpaying by as much as 20% per year for SaaS.
On top of that, buying, renewing, negotiating and managing your company’s SaaS stack are all major headaches.
We’re here to fix that.