SaaS Management

What is SaaS Management?

SaaS management is the process of managing the cloud-based software applications for your company. This includes managing  your SaaS spend, performing the necessary admin tasks like tool onboarding and bookkeeping, and monitoring risks linked to third party tools. Here’s what you need to know about SaaS management.

What is SaaS?

"SaaS (Software as a service) is today's most popular way of consuming software. Some SaaS companies examples include  Salesforce, Hubspot, BambooHR, Figma, Docusign or GitHub.

A collection of Saas tools with their category indicated, all managed through Cledara.

Why do I need a SaaS Management process?

Most companies purchase SaaS solutions to run their operations as SaaS is flexible, scalable and accessible. But as SaaS tools pile up, tracking which ones  you’re using gets harder and spend  increases almost uncontrollably.

For most companies, software is one of the top expenditure categories—right next to payroll. Yet Gartner estimates that 30% of software spend is wasted on forgotten, unused or duplicate tools.

Managing a couple of  subscriptions is simple enough. But the bigger your tech stack gets, the more difficult it becomes to manage.

So how do you prevent software sprawl? And when’s the best time to get started with SaaS management?

Companies have an average of 66 SaaS Subscriptions
(That they know about).
Source: Cledara, The State of SaaS Management in 2021
Stack of apps and their combined cost

When should I start managing my SaaS?

As soon as you start paying for your first software subscriptions, we strongly recommend you start thinking about SaaS management. There are no-budget options available and it will allow you to grow faster, saving you time, money and headaches.

How do I start managing my SaaS?

You have two options to get started that don’t require a budget. Here’s what you need to know about them.

Use a SaaS management template

In the very early stages of a startup, software subscription information  typically lives in a spreadsheet since it is relatively simple to track. However,  this can quickly become a problem, since spreadsheet data goes out of date quickly as you hire people and add new apps

Download Cledara’s free software management template for  a good starting point—just know that this is not a great long term solution, as a spreadsheet won’t scale with you as you grow.

Free SaaS Management Template

Take your first steps in managing software with this free template.

Software Management Templates

Get started on a free SaaS  management tool

Starting with SaaS management software early saves you time and money as your business scales. With Cledara’s Get Started plan, you can manage up to 15 apps for free and have peace of mind that your software is under control.

Start managing your software  
free with Cledara

What’s wrong with managing my SaaS in spreadsheets?

While using a spreadsheet to manage your SaaS is better than nothing, you will very quickly discover its flaws as you use it. Here’s everything you need to know.

No reliable source of truth

Your spreadsheet is only as accurate as the last time you updated it. This means that as soon as an app renews or someone purchases a new tool, it will be out of date.

A pile of manual admin

Managing software in spreadsheets requires you to manually capture invoices, review cards statements and reconcile payments. This is time-consuming and often requires you to ‘chase’ stakeholders across the company to validate information.

Payments are high risk

If you’re buying software with shared company cards and don't use a dedicated system for software payments it's easy to lose control of what's being spent by who. More worryingly, business critical tools can be disrupted if cards are lost or blocked.

Limited visibility on tools

If you’re logging your tech stack in a spreadsheet, it’s hard to know whether a tool is really being used—let alone whether it offers a positive ROI.

If you ask your colleagues whether they’re still using a tool, they’re likely to just say “yes” for simplicity’s sake. Without a way to know whether they’re telling the truth or not, you’re going to be paying for tools that aren’t being utilized.

What are the benefits of a SaaS management tool?

The goal of SaaS management is to improve the value people get from the apps they use, reduce the risk of uncontrolled tools in a company, and increase the effectiveness of the teams who rely on it to drive success.

SaaS management platforms like Cledara give you the peace of mind that people have the right software in their hands and that things are under control.

It sounds simple enough. But if you’re reading this, you know that companies use more SaaS applications than ever and that as the number grows, it gets exponentially harder to keep up with.

Here are the benefits you need to know about SaaS Management platforms.

A graphic depicting the Benefits of SaaS Management. 
The listed benefits are:
Ensure Compliance
Prevent Shadow IT
Control and manage SaaS Spend
Streamline onboarding and offboarding

Gain visibility over all tools

It’s easy enough to manage one or two applications. But as your software stack grows, a lack of visibility quickly starts to become a problem.

SaaS management platforms like Cledara give you visibility over every piece of software your company uses and every dollar of tech spend, regardless how big or small.

From a single dashboard, you can see:

  • A real-time view of all your apps
  • Detailed insights into how much your team use every app
  • The costs and renewal dates of every app
Cledara's dashboard. The user can see the annual budget set for a tool as well as the renewal date.

Control your tech spend

According to a recent survey, only 47% of companies are confident that all their SaaS tools add value to their organization.

A SaaS subscription management platform like Cledara helps you set spend controls to ensure every dollar of the tech budget is being put to good use.

You can:

  • Approve software requests
  • Set spend limits and cancel subscriptions in a click
  • Flag duplicates and underused seats
Cledara's tool approval dashboard.

Streamline Finance and IT admin

Every tool means a payment every month, an invoice, and multiple access requests. A SaaS management platform helps you streamline this admin burden by giving you a way to:

  • Capture SaaS invoices automatically
  • Sync payments and invoices to your accounting system
  • Streamline software access in your organization
Cledara's automatic invoice collection.

Hunt down Shadow IT

According to a recent survey, executives’ top software-related concern is the risk of privacy and data breaches. And Shadow IT is probably where the biggest concentration of that risk is.

SaaS management platforms like Cledara give you peace of mind that Shadow IT is under control, by giving you:

  • A process to approve new tools that you control
  • Set spend limits and cancel subscriptions in a click
  • Alerts on Shadow IT usage
What is Shadow IT?

The term “Shadow IT” refers to software and hardware that is being used within a company but hasn't previously been authorized, managed, or supported by the IT department or other relevant stakeholders.

Ensure compliance

SaaS tools are hard to track, and even harder to chase stakeholders to ensure you comply with regulation.

A SaaS subscription management platform like Cledara gives you the peace of mind that you’re ready to pass (or maintain) you certificates.

You can:

  • Natively embed compliance in your purchasing processes
  • Delegate compliance questionnaires
  • Access templates to meet ISO27001 and SOC2
  • Check whether your software vendors are certified
Image showcasing the process of checking a tool's compliance

For more tips and tricks to manage your software stack, visit our comprehensive Software Management Guide for startups.

Start managing your software  
free with Cledara

How do I choose the right SaaS management vendor?

If you’re reading this it’s probably because you understand that managing SaaS with spreadsheets and corporate cards is far from optimal—and unfortunately, doesn’t provide control or visibility over your tech stack.

You know you want something to solve that. Here are some requirements to help you find the perfect tool.

Identify the  specifics of your SaaS management journey

We recommend mapping the journey of SaaS at your company and asking yourself what needs to be done each step of the way. This will help you ask the right questions to the sales reps of your SaaS management vendor.

What’s the SaaS management journey?

The SaaS management journey brings together all the steps that companies go through  to manage software tools effectively, throughout its whole lifecycle. It consists of four steps: Discovering software, Buying it, Managing all the ins and outs, and finally, Canceling it.

What questions should I  ask SaaS management vendors?

SaaS management is a relatively new discipline because the proliferation of SaaS is also relatively recent.

Naturally, that leaves us wondering what do we exactly need from a SaaS management vendor. Here’s what you need to know for every step of the journey.

A graphic depicting the phases of the SaaS Management process.

1. Discover

With +25,000 SaaS tools available, it becomes harder to discover the right app. Your software management vendor should make the discovery process easier.

Questions to ask on Discover:

Does your platform help me discover all the software my company currently uses, including Shadow IT?
Does your platform let me know what tools companies like mine use? And how much they pay for it?

2. Buy

It’s never been easier to buy software. Trials are seamless, subscriptions roll over to paid commitments, and before you know it, you have yet another subscription on the corporate card — perhaps for several years.

Your software management vendor should provide secure payments to control software purchases and renewals.

Questions to ask on Buy:

Does your platform offer a way to pay for software?
Is the payment method you offer safe and effective?
Are there any fees associated with making  payments with your platform?
Does your platform prevent vendor overcharges and unapproved purchases?
Does your platform provide cashback?
Does your platform provide approval processes for new software and budget changes?

3. Manage

Once you’ve discovered and bought a software subscription, chances are your company will use it for months or even years. This doesn’t mean that your work is done.

SaaS tools require regular care and dedication. Your SaaS management vendor should help you streamline that.

Questions to ask on Manage:

Does your platform automate my software administration tasks, like chasing invoices, bookkeeping, and reconciliation?
Does your platform make it easy to give software access to new joiners? Does it help you easily revoke access to leavers?
Does your platform help me manage my moving targets of budgets and spend?
Does your platform track whether apps are being used and by whom? 
Does your platform simplify the compliance process for your SaaS subscriptions?
Does your platform help you negotiate better renewals?

4. Cancel

It makes little sense to continue to pay for software that doesn’t provide value. Yet vendors make it easy to buy software, but some make it challenging to assess the value and, sometimes, to even hard to cancel it.

Your SaaS management vendor should flag software that’s providing questionable value and give you an easy way to cancel it, when needed.

Questions to ask on Cancel:

Does your platform give me insights into tools that are duplicated or unused software?
Does your platform alert me if a vendor tries to overcharge me?
Does your platform allow me to cancel software apps in one click?

Why Cledara?

Cledara’s SaaS Management Platform is the only SaaS Management Platform that covers every step of the journey—and can answer all of the questions above with a resounding “yes.”

With Cledara, Finance teams have the peace of mind that software is under control.

Managing a couple of  subscriptions is simple enough. But the bigger your tech stack gets, the more difficult it becomes to manage. 

Designed with customers in mind, Cledara gives you full visibility over subscriptions, complete control over software spend, and a way to streamline all admin.

Cledara's app user interface