Wefunder sought to cut costs and found their compliance management tool expenses were high. Despite negotiations, the vendor demanded a large prepaid commitment, which was unaffordable in uncertain economic times. Switching tools was complex due to integration challenges.
How WeFunder Saved 50% on a SaaS Vendor Using CloudEagle
“Instead of switching to another vendor, CloudEagle’s negotiations helped us continue using the same tool by just minimizing the overages. I would strongly recommend you consider CloudEagle if you’re serious about realizing savings on your software spend.”
- Sophie Wang, Director of Finance, Wefunder
Wefunder, with CloudEagle's help, identified that compliance management transactions can be optimized. SaaS buying experts led negotiations, removing prepaid commitments. Our experts advised Wefunder against seeking alternatives as we focused on securing a favorable deal with the vendor.
CloudEagle's experts swiftly analyzed app usage and benchmarks, leading to a 50% cost cut for the compliance management tools after negotiations. CloudEagle’s SaaS buying experts eased Wefunder's team workload, boosting productivity by optimizing vendor negotiations and spend management.
- CloudEagle helped Wefunder identify cost optimization opportunities for a specific vendor.
- Wefunder reduced spend by 50% on a compliance management tool.
- CloudEagle’s SaaS buyers enabled Wefunder’s procurement team to save time on negotiations.
Wefunder’s financial team initiated a project, and the focus was to identify expensive vendors and optimize their spending.
- The Wefunder team identified that a compliance management tool was the second-highest spend in their stack. They have been using it on a minimal commitment plan for over 7 years, paying thousands of dollars in overages.
- For over two months, the Wefunder team negotiated with the vendor to lower the cost per transaction. However, the vendor refused to do so unless a significant prepaid commitment is put forth.
Wefunder could not commit to such a large amount due to the unstable economic conditions.
- Wefunder even considered switching to another tool; however, this would pose an even greater challenge as it would require a significant engineering effort due to the need for multiple integrations.
“As a lean team, we did not have enough bandwidth to renegotiate and save on SaaS spending, which kept increasing daily.”
- Sophie Wang
Wefunder chose CloudEagle as our SaaS buying team has expertise dealing with similar scenarios and vendors.
- Our team worked with the customer and identified that the number of transactions on the compliance management vendor could be optimized, which can minimize Wefunder's overages.
- Our SaaS buying experts took over the negotiations, and as a first step, they negotiated with the vendor to eliminate the prepaid commitment.
- We asked the customer not to look for an alternative tool, as our SaaS buying experts were determined to negotiate a favorable outcome with the vendor.
“We made the right choice with CloudEagle.”
- Sophie Wang
Cost-savings through negotiation: After the initial round of negotiations and saving the customer from a prepaid commitment. CloudEagle's SaaS buying experts swiftly analyzed application usage data, utilized current benchmarking information, and skillfully negotiated with the vendor.
This strategic approach resulted in a 50% cost reduction for the compliance management tool, helping Wefunder save thousands of dollars on overages.
Wefunder’s procurement team increased their productivity and saved 473 hours annually on negotiations as CloudEagle does all the heavy lifting of vendor negotiations and assists them in streamlining their spend management process.
Wefunder is no stranger to SaaS and startup enthusiasts worldwide. It is a crowdfunding platform that lets people invest as little as $100 in their favorite startups worldwide.
They bridge the gap between startups and leaders in the digital space. Wefunder is seen as a Robin Hood for pre-IPO startups, allowing users to invest in them, resulting in higher business growth.