SaaS usage and need are increasing due to its scalability and convenience.
As a result, this increases the SaaS expense of businesses uncontrollably.
Amid the growing need for SaaS software, is there a way to keep the expenses within budget while balancing the workflow?
Well, the answer is SaaS spend management softwares.
As Benjamin Franklin said, "Beware of the little expenses. A small leak will sink a great ship."
Thus, spend management is critical for any business's growth, as spending leaks impact your company's profitability, especially when the spending stays unattended.
Wondering which platform to use?
We are here to help! With so many top spend management platforms available, choosing the best among them might be tricky. So, to assist you in making an informed decision, we've crafted a list of the best spend management tools to save you money and time.
To start things off, let's walk through a few fundamentals.
What is SaaS spend optimization?
SaaS spend optimization is the process of determining the most efficient strategy to cut costs associated with your SaaS applications while retaining functionality, capability, and customer experience.
Moreover, it encourages canceling product subscriptions that are over-licensed or under-utilized, reduces the number of SaaS apps or licenses in your firm, and paves the way for right-sizing contracts.
It significantly minimizes SaaS waste, unwanted security gaps, and expense buildup by tracking all current SaaS solutions and discovering over-licensed and under-utilized SaaS apps.
Thus, the SaaS Optimization process boils down to monitoring, managing, and lowering the expenses associated with your SaaS apps while limiting any loss in their value to your business.
Why do you need SaaS spend management software?
On average, 30% of SaaS software spending is unused or wasted in a company. However, this does not have to be the case.
SaaS spend optimization software is one of the approaches followed by businesses to control their SaaS portfolio costs and maximize the value of SaaS apps through effective cost optimization tactics.
Here are some of the key reasons why a firm needs SaaS spend management tools;
1. Centralized visibility
SaaS spend management tools are used to oversee and monitor the costs of software as a service (SaaS). So, these platforms aid in centralizing visibility over SaaS subscriptions and outlining their usage.
Users can then compare usage numbers to subscription costs to uncover wasteful expenditures.
2. Reduce SaaS spend
Reduces the costs/ spending on SaaS apps. Businesses can negotiate SaaS contracts, right-size SaaS licenses, remove redundant applications with similar functionality, remove underutilized and unwanted SaaS apps, and more with the correct SaaS insights.
All of these measures have an influence on the company's bottom line and set the stage for future cost-effectiveness.
3. Remove underused apps
Help eliminate unneeded, superfluous, and redundant SaaS apps and resolve security risks left by unmanaged SaaS stack expansion.
4. Prevent shadow IT
It assists IT teams in identifying and preventing shadow IT. This refers to the illicit acquisition, deployment, and use of digital services or devices (for example, cloud-based software) in order to avoid a central IT department.
Shadow IT, if not managed, can expose a business to compliance and safety risks.
5. Renewal alerts
Teams will receive alerts and likely opt out of renewals if a program is underused or users provide bad feedback.
6. SaaS overlap
These technologies also assist businesses in identifying app overlap so that no organization pays for duplicate subscriptions to similar software. Some overlap exists with cloud-based cost management software.
However, these technologies track and control cloud infrastructure spending instead of cloud-based SaaS applications.
Businesses can increase their efficiency and soar their productivity by automating SaaS spending and expense-tracking operations that are error-prone and time-consuming when delegated to employees.
Firms can achieve long-term productivity gains by freeing employees from routine duties and allowing them to execute jobs that generate income for their organization.
What is the best SaaS spend management software for cost optimization?
Get complete insight into your organization's cloud-based expenditure, control costs, conduct informed renewal negotiations, and safeguard all SaaS-based apps using SaaS spend management software. The capabilities of a SaaS spend management platform might help you save considerably and optimize your SaaS investments.
So, if you're ready to take control of your spending and get the most value for your buck, here are the top SaaS spending management tools to consider.
CloudEagle is a popular SaaS expense management software. It aids finance, procurement, and operations teams in lowering software costs and streamlining software renewal and buying .
Moreover, CloudEagle removes the tedious responsibilities of managing software providers and cost optimization through workflows, allowing your team to focus on critical business tasks.
Here are some ways the software helps in cost optimization;
Discovers and optimizes low-usage apps
Do you want to know if your teams are making the best use of their apps? Do you want to know who is a frequent user, and who hasn't checked into the app in the last three months? This software helps companies discover low-usage apps and deprovision users to minimize SaaS spending.
Identifies and eliminates duplicate apps
Having difficulty minimizing your SaaS budget due to duplicate apps? Recognize duplicate subscriptions across sectors and consolidate user licenses to get favorable vendor prices. Control costs and optimize spending by efficiently centralizing your SaaS portfolio.
Identifies unneeded subscriptions and reduces spending
Are redundant apps squandering your SaaS investment? Identifying and removing duplicate software can save you a significant amount of money. CloudEagle's software assists in identifying unused apps. As a result, companies do not incur additional costs!
Apart from cost optimization, the software's top features include;
- Application discovery
- Contract management
- Procurement workflow
- Vendor research
- Assisted buying and benchmarking
- Creating financial reports
- Easy on-boarding and off-boarding of the SaaS apps.
- Renewal reminders and cost optimization alerts.
Thus, CloudEagle takes care of all the needs from start to finish, making it one of the best SaaS lifecycle management apps.
Trusted by customers and 300+ vendor partners, CloudEagle is the best SaaS spend management software with features for all the departments: IT/security, procurement, and Finance. Moreover, it has worked with brands like Box, Falkonry, RecRoom Airbnb, and ServiceNow and helped them save on expenses.
It is one of the comprehensive platforms in this list; see it for yourselves,
Book a demo
A 15-day free trial is available. Pricing plans start at $500 per month.
Vendr was formed in 2019 by Ryan Neu and co-founders Ariel Diaz and Aaron White, who joined the organization through the takeover of Blissfully in 2022. It is based in Boston and has a second presence in Charleston. The company employs around 250 people worldwide.
Vendr, a simple SaaS purchasing platform, is revolutionizing how businesses locate, acquire, and manage SaaS. Vendr's SaaS buying platform is the first of its type, offering both a product and people-powered services to empower the world's fastest-growing firms to purchase software rapidly and with assured savings.
Vendr is ideal for businesses that harness data to reduce SaaS spending and maximize cost savings. It studies SaaS consumption and uncovers pockets of savings for you as a SaaS management platform, allowing you to renegotiate your agreements and only pay for what you use.
Vendr, one of the top platforms for SaaS spend management, has already facilitated over $1.5 billion in SaaS purchases for finance and procurement departments at HubSpot, Brex, Canva, Reddit, Toast, and other companies.
The starter plan is priced at $36,000 per year
Sastrify is a top SaaS spend management and procurement software solution. It is one of the most affordable SaaS spend management solutions for optimizing your spending. It utilizes pricing benchmarks to highlight where you could save money on SaaS so that you can negotiate lower costs with vendors.
You can track SaaS software licenses and invoices using Sastrify. In addition, Sastrify provides access to its staff of SaaS professionals, saving you the trouble of increasing your own management team.
Sastrify already works with companies like Gorillas, Pitch, and Mollie to improve their SaaS spend. They enable businesses to locate, monitor, and negotiate the most favorable market prices for SaaS licenses, saving 30% and upwards on the SaaS stack.
The plans start at $2,990 per month and $35,880 per year.
Torii can help you gain more significant spending insights and optimize your SaaS ROI. This powerful discovery platform may assist you in understanding your SaaS consumption, making changes, and increasing employee productivity.
Torii delivers a comprehensive view of your SaaS spending, contract data, and ERP. It also uses SaaS intelligence to filter out the clutter and see all the software in use, duplicated, or wasted.
This allows you to make fast business decisions on any app, user, or license without exiting the platform. Torii can integrate various resources, such as ERPs, and track your SaaS spend throughout your portfolio.
Furthermore, advanced workflows will enable you to reclaim your unused license and automate custom license reclamation quickly. Torii can also assist you in locating, managing, tracking, or phasing licenses.
Torii, one of the best software for SaaS spend optimization, enables companies such as Instacart, Palo Alto Networks, Delivery Hero, Payoneer, and Hired to find and automate their SaaS system.
Contact Torii’s team to know the pricing
Finly, a SaaS-based platform established in 2015, allows organizations to automate, track, and streamline corporate expenditures, ensuring efficiency and cost savings. It helps businesses automate and streamline spending by providing software for business expenditure management, digital cash distribution, vendor payments, and GST-compliant invoices and payments.
Finly includes a software-as-a-service component that streamlines all internal financial processes. To digitize all external financial transactions, i.e., cashless and paperless, the SaaS component combines with every payment mechanism.
The SaaS application enables numerous stakeholders (spender, reviewer, finance team, and vendors) engaged in each transaction to interact and collaborate while providing total visibility to the accounts team. The solution updates all business systems in real-time with financial operations within the corporation.
For pricing, please contact Finly's team.
Zylo promises to help save businesses up to 20% on SaaS costs. It also exposes shadow IT and provides an inventory of approved applications that consumers can access. Zylo, interestingly, also provides a SaaS negotiator service.
If you lack the time or internal experience to negotiate contracts, In that case, Zylo can do so for you by utilizing benchmark data that provides insight into the most competitive industry price points.
Zylo might be an intriguing choice for companies wishing to optimize their SaaS portfolio without the cost of building an internal workforce.
Zylo's SaaS Managed Services are delivered by a team of industry specialists, resulting in cost savings and freeing up your resources. Execute your SaaS strategy without adding more manpower, from establishing SaaS management best business practices to managing SaaS licenses and data.
You can request a customized quote from Zylo’s team.
Spendflo makes SaaS buying and optimization easier for high-growth companies. You may use the Spendflo platform to
- Get assistance with the purchase
- Optimize approval workflows
- Contract management that works
- Accelerate vendor and security compliance
- Monitor SaaS consumption across the board.
Spendflo promotes purchasing, teamwork, and context automation while providing best-in-class service and a guarantee of SaaS spending savings. This makes your entire SaaS buying cycle efficient and budget-friendly
Spendflo is trusted by companies like Ula, Matchmove, Mind tickle, Airmeet, etc.
Customizable pricing based on your annual spend.
Zluri is a good choice to maximize your SaaS savings, productivity, and visibility. It provides a simple interface, from discovery and management to task and purchase automation.
Zluri enables enterprise IT professionals to identify, manage, and optimize SaaS applications, as well as secure and automate them, all from a single interface. IT, Finance, and Procurement departments can effortlessly maximize the benefit and efficiency of their subscription-based software ecosystem with Zluri.
Through the use of Zluri’s data, you may cut your SaaS costs by a third, uncover underutilized and unneeded programs, merge them with similar services, and renew licenses. Furthermore, the software facilitates automated SaaS purchases, forthcoming renewals, and on-boarding and off-boarding with a few clicks.
Zluri's platform connects effortlessly with over 800 of the most popular SaaS apps.
Contact the team to know the pricing.
Snow software can help you discover, control, and improve your SaaS ecosystem. It provides detailed insight into your SaaS usage, which you can utilize to avoid waste, minimize vendor sprawl, negotiate renewals, and remove redundant and hazardous apps.
This platform provides SAM experts with improved visibility across unapproved, approved, licensed, and free SaaS apps and infrastructure, as well as on-premises apps, on a unified platform. All of this information will assist you in optimizing SaaS spending and successfully controlling operations.
It will also enable you to merge data for multiple apps using SaaS API connectors and provide an API connector for rare apps. You can use it in combination with other applications and do everything without flipping tabs.
For pricing, please contact the team.
Certero is a single, comprehensive platform for managing IT assets. Moreover, the platform offers multi-SaaS control and everything for managing, right-sizing, and avoiding overpaying for unused SaaS licenses.
This platform aids in stopping and managing overspending on SaaS products.
It is a centralized platform for license management of SaaS products, renewals of contracts, app visibility across numerous vendors, usage, cost management, and eliminating unwanted SaaS software and reporting.
In addition, the platform assists businesses in fighting SaaS challenges like;
- Cloud Sprawl
- Shadow IT (licenses/subscriptions that exist without approval)
- Unexpected Changing costs and their impacts.
- Wastage of SaaS licenses and subscription
Contact the team to know the pricing.
Thus, conclusively, a SaaS spend management platform will enable you to view and manage all your SaaS Apps, their allocation, and consumption, helping you reduce your SaaS cost considerably.
So, we hope amid the plethora of SaaS platforms, the above-compiled list of the best options can help you pick the best suitable platform for your business.
At CloudEagle, we have a team of expert SaaS buyers familiar with the nitty gritties of procuring SaaS and managing the tech stack. Their industry expertise has saved businesses billions in SaaS spending. So book a call today!
Frequently asked questions
1. What are the key principles or strategies for effective SaaS spend management?
Following SaaS spending principles can help any business control its SaaS spend
- Consolidate your SaaS procurement.
- Keep track of license consumption and save unused licenses.
- Reassign users to the appropriate package or service level.
- Make use of your purchasing power.
2. What to look for while purchasing tool for spend management?
A strong discovery engine: Select a SaaS Management platform that can detect and classify the hundreds of SaaS acquisitions that are most likely lying in your organization.
Insights into key usage: Your system of record must contain the ability to uncover core use facts all the way down to the unique license level.
Usage Data: Look for SaaS management tools that analyze usage data and provide actionable insights, as well as those that automate processes to rightsize licenses, consolidate duplicate subscriptions, handle renewals, and ultimately improve SaaS expenditure management.
3. What are the advantages of SaaS Spend Management tool?
SaaS Spend Management tools simplify procurement, increase visibility and control over the SaaS stack, and allow more efficient use of SaaS resources. Its knowledge aids in the removal of redundancy, the identification of underutilized services, the reduction of risks connected with shadow IT, and the facilitation of productive vendor negotiations.
The program saves time and money by automating the administration of SaaS subscriptions and licenses, facilitating compliance, lowering expenses, and improving decision-making.