One of the most common questions I hear from customers is: “How should we start managing our SaaS?” or “What are the best practices?” My answer? It depends—on your organization’s maturity, governance processes, executive sponsorship, tooling, and more. Every organization is unique, with varying challenges and goals.
That said, if you’re early in your SaaS management journey or looking for fresh approaches, here are some actionable steps to get you started.
Start small; skip big, abstract goals
It’s tempting to set ambitious objectives like “Achieve $X million in savings within six months” or “Monitor 200 SaaS subscriptions.” But these lofty goals can be overwhelming. Instead, focus on discovery: understand what you currently have.
You’ll want to begin by defining your overall scope and areas of governance. This will help you start to build out a picture of your SaaS landscape. If you already have visibility into purchases and usage, create a list of vendors to monitor. If not, use sources like single sign-on (SSO) data, browser discovery, or cloud access security brokers (CASB) to uncover your organization’s SaaS footprint.
Here are a few resources to help you get started:
- Guide: SaaS discovery methods
- Webinar: Optimizing your SaaS landscape: Best practices revealed
- Blog: The importance of multi-source data to effectively manage your SaaS visibility
Understand SaaS procurement practices
Once you have identified what SaaS footprint you have, then the next step would be understanding how these subscription licenses are being procured. Here are several scenarios and areas to break down:
Analyze contracts and terms
There may be corporate agreements in place with rigid licensing rules, leaving little room to downgrade or reduce subscriptions. In such cases, your goal could be to focus on timely renewals and cost avoidance. For example, if you’re nearing your entitlement limit, consider reclaiming licenses from inactive users or redistributing tasks and responsibilities from less active users to more active ones to avoid unnecessary additional purchases.
Watch for ad-hoc purchases
If users are purchasing SaaS software on an ad-hoc basis and expensing it on their credit cards without the SAM team’s knowledge, this could lead to hidden compliance and financial risks. Purchasing licenses in bulk, on the other hand, often qualifies the company for higher-tier pricing and better discounts (e.g. Adobe’s VIP program). As an early goal, consider implementing a centralized purchasing policy to prevent individual software purchases and expenses through marketplaces.
Prioritize vendors
You might instinctively target big-name vendors first. However, this can lead to resistance from stakeholders. Instead, start with smaller vendors where savings are more attainable. Scale this approach across other apps to build credibility with stakeholders and show more immediate value.
Consider application rationalization
With a long list of SaaS vendors, look for opportunities to consolidate. For example, does your organization use multiple document editing or communication tools? You want to be able to measure and track software usage to accurately optimize your SaaS portfolio. Some major SaaS vendors will provide access to their APIs allowing third-party tooling to extract and show granular detail of who is using what application and when was the last time it was accessed and more. Analyze costs, usage, and ROI to identify overlap and reduce redundancies.
Here are some resources to help with app rationalization:
- Blog: Where do you start when it comes to rationalizing your SaaS portfolio?
- Blog: How do you measure the success of SaaS application rationalization efforts?
- Solutions: Software usage costs and application rationalization
Build a SaaS renewal calendar
Do you know when your SaaS renewals are due?
- Consolidate dates: Consider negotiating co-termination to align multiple expiration dates.
- Avoid auto-renewals: Note cancellation notice periods to avoid unnecessary renewals.
- Assess needs: Don’t default to last year’s subscriptions—re-evaluate your needs annually.
Secure executive sponsorship
Before diving deep, ensure you have executive backing to implement changes. Focus on achievable wins to build momentum. For example:
- Present a business case: Highlight potential savings by analyzing vendor usage. If your organization spends $1M on a vendor, but only 70% of licenses are active, downgrading unused subscriptions could save $300K annually.
Final thoughts
Starting your SaaS management journey might feel overwhelming at first but so satisfying once you start organizing and see the results. Remember, you don’t need to have everything figured out right away. Begin with small, actionable steps: figure out what you have, understand how it’s being used, and set achievable goals that make sense for your organization.
And don’t forget, SaaS management is a team sport. Involve stakeholders from across the business, communicate your wins, and build momentum as you go. With a little persistence and collaboration, you’ll turn that cluttered SaaS landscape into a streamlined, efficient operation—and maybe even save a few headaches (and dollars) along the way.
If you’re ready to roll up your sleeves, take a look at how Flexera can help you with all of your SaaS management processes!
