In the modern enterprise, two pivotal solutions dominate the SaaS stack: SaaS Management Platforms (SMP) and Contract Lifecycle Management (CLM) software.
Software as a Service (SaaS) has emerged as a game-changer, witnessing exponential growth over the past decade. Its allure lies in its adaptability, accessibility, and cost-effectiveness. A SaaS Management Platform is a solution designed to streamline the administration and optimization of SaaS applications within an organization.
CloudEagle is a leading SMP; it provides features to oversee, manage, and optimize SaaS apps' usage and costs and streamline procurement and security across the organization.
Contract Lifecycle Management (CLM) is also witnessing exponential growth within enterprises. Its ability to centralize, streamline, and optimize the contracting process has become indispensable. Its adoption is driven by the need for efficiency, compliance, and risk mitigation in managing diverse contractual agreements.
Both Contract Lifecycle management tools and SaaS management platforms, like CloudEagle, focus on centralization and optimization. They streamline processes—CLM for contracts SaaS management for subscriptions—ensuring compliance, efficiency, and cost control. Both aim to provide oversight, standardization, and governance in their respective domains within enterprise operations.
With this overlap, a question arises: do you really need a SaaS management solution like CloudEagle in addition to your contract lifecycle management tool?
Let’s find out!
Growth of SaaS
The growth of SaaS in enterprises shows no signs of slowing down. As technology evolves and businesses increasingly prioritize agility and efficiency, SaaS solutions continue to evolve, offering a broader array of tools and services across diverse industries.
As SaaS offerings continue to diversify and multiply, enterprises need effective SaaS management to navigate this evolving landscape. The exponential growth of SaaS also poses challenges in managing various SaaS subscriptions, each with distinct billing cycles, licensing terms, and security protocols.
Effective SaaS management is indispensable for enterprises aiming to optimize their software ecosystem. It involves comprehensive oversight of all SaaS applications, ensuring compliance, cost control, and optimal utilization. Centralizing SaaS procurement, monitoring usage, and standardizing security protocols are crucial aspects of this management approach.
While Contract lifecycle management (CLM) has been a longstanding cornerstone in enterprise operations, the emergence of SaaS has introduced a new layer of complexity.
Companies, often relying on CLM for contract oversight, might question the necessity of a dedicated SaaS management platform.
Navigating the difference between SaaS management solutions and CLM
CLM primarily focuses on contracts, overseeing their creation, storage, and lifecycle. However, SaaS management encompasses a different realm, addressing diverse software subscriptions' complexities, utilization, compliance, and cost optimization.
The rise of SaaS solutions has unveiled gaps within CLM frameworks, as they might not fully cater to the intricate needs of managing numerous software subscriptions.
Read more about the challenges and expert tips for SaaS contract renewal.
Contract Lifecycle Management (CLM) focuses on managing contracts, while SaaS management keeps track of the company's different software subscriptions. SMPs look after software assets like licenses, security, and how the software is used, which aren't entirely handled by regular contract systems.
Integrating both CLM and SMPs can fortify a company's operations. CLM handles contract specifics, while an SMP optimizes the administration of multifaceted software subscriptions.
Acknowledging the distinct focuses of these systems is critical; while CLM is foundational, a dedicated SaaS app management platform becomes increasingly essential in navigating the complexities of modern software environments.
The intersection of Contract Lifecycle Management (CLM) with software as a service (SaaS) management showcases a crucial synergy in optimizing business operations.
SMPs pave the way for spend optimization and cost control
As more companies use SaaS, they end up wasting money on unused software licenses. They struggle with subscriptions that aren't fully utilized, causing them to spend more than they need to. That's why companies must focus on saving money by better managing their SaaS subscriptions.
SMPs offer a solution by providing comprehensive oversight into SaaS usage. They identify redundant or underused licenses, enabling companies to right-size their subscriptions, optimize costs, and ensure maximum utilization.
SMPs empower enterprises to make informed decisions, aligning their SaaS investments with actual needs, ultimately driving efficiency and cost savings in their software ecosystems.
The rise of SMPs addresses wasted licenses and revolutionizes SaaS procurement within enterprises. SMPs streamline the procurement process by offering insights into subscription usage trends, allowing for informed decision-making.
They provide data-driven analytics, guiding companies to select the most suitable subscriptions aligned with their needs. Additionally, SMPs facilitate standardized procurement workflows, from request approvals to renewals and negotiations, ensuring optimal terms and costs.
By offering visibility into current subscriptions and guiding future procurement, SMPs empower enterprises to make strategic, cost-effective decisions, maximizing the value derived from their SaaS investments.
SMP and CLM are built for different business needs
SaaS management solutions like powerful platforms like CloudEagle are crucial in handling modern SaaS management and purchasing complexities. These solutions are built to make Software as a Service (SaaS) applications generate better ROI, specifically for IT, procurement, and finance teams involved in getting, renewing, and making SaaS apps cost-effective.
On the other hand, CLMs are mainly made for legal and procurement teams to gather contract data in one place for better visibility, access, and compliance control.
Use them in synergy to realize dollar savings
Data from Contract Lifecycle Management (CLM) holds valuable insights that can significantly boost savings when utilized by a SaaS Management Platform (SMP). Here's how:
- Contract Details for Utilization: CLM contains data on contract terms, such as the number and types of licenses contracted, renewal dates, contractual obligations, etc. SMPs can use this data to align subscription usage with contracted terms, ensuring optimal utilization to avoid overpaying for unused licenses.
- Renewal Management: CLM tracks contract expiration dates. SMPs leverage this information to proactively manage SaaS renewals, preventing auto-renewals for underutilized subscriptions or negotiating better terms based on historical usage.
- Cost Allocation and Budgeting: CLM data helps SMPs allocate costs accurately across departments based on contract details. SMPs add actual spending, aiding in budgeting and allocating costs, preventing overspending, and facilitating accurate financial planning.
- Vendor Consolidation: CLM provides insights into multiple vendors and contracts. SMPs can analyze this data to identify opportunities for vendor consolidation, leveraging economies of scale for better pricing and reducing redundant subscriptions.
Here is how vendor consolidation reduced SaaS spend by 50% for Falkonry
- Compliance and Optimization: CLM data holds compliance requirements and terms. SMPs can ensure SaaS subscriptions align with these requirements, avoiding penalties and optimizing costs by efficiently selecting subscriptions that meet compliance needs.
- Automated Workflows: Integrating SaaS management data with CLMs enables automated workflows for contract renewals, approvals, and compliance checks. This automation reduces manual intervention, streamlines processes, and minimizes errors.
Overall, integrating SaaS Management with CLM solutions optimizes operations, enhances decision-making, and ensures a more efficient and synchronized approach toward managing contracts and SaaS applications within an organization.
CloudEagle integrates with leading Contract lifecycle management solutions
CloudEagle, a full-stack SaaS management solution, can integrate with multiple CLM modules for centralized management of both SaaS and non-SaaS contracts. We meticulously track transaction and usage data, uncovering opportunities for cost optimization.
Receive renewal reminders sent 90 days in advance along with automated workflows for seamless renewals, alleviating last-minute rushes. Our team can also negotiate with vendors on your behalf, maximizing savings and freeing up your time.
With integrations to platforms like DocuSign, Workday, and more, we import data, extract metadata, and ensure accurate contract and license management. Our AI extracts and organizes metadata in one location, enabling a unified view of all contract data, saving time, and eliminating spreadsheet chaos.
Access all contracts via a singular dashboard, streamlining vendor contract management and tracking auto-renewals and minimum spend commitments. Our Slack-enabled workflows will keep you in the loop with real-time updates and approval reminders.
CloudEagle has helped leading brands like RingCentral, Lob, and Nowports save thousands of dollars in SaaS spend and hundreds of hours managing and renewing SaaS apps. Our AI has analyzed $500 million in transactions and saved over $50 million. CloudEagle can be your trusted savings partner.
So, what are you waiting for? Get more out of your CLM and save 30% of your SaaS spend with CloudEagle.