A Comprehensive Guide to SaaS Management Best Practices

Software as a Service, or SaaS, has become a big part of how businesses work today. Many organizations use these tools because they are easy to use and can grow with the company. However, managing SaaS can be tricky. This article will help you understand how to manage SaaS effectively, keep it secure, and use it to your best advantage. It's important to know that many companies are now focusing on making SaaS more secure. In fact, many organizations underestimate the number of SaaS tools they use by two or three times. Also, a lot of money is wasted on licenses that are not even used.

Understanding the SaaS Landscape

What is SaaS Management?

SaaS management is like being the boss of all the SaaS tools your company uses. It means keeping track of all the apps, licenses, and subscriptions. It also means watching how people are using these tools, controlling costs, and making sure everything is safe and secure. The main idea is to make sure that your company is getting the most out of its SaaS investments.

Key Components of SaaS Management

There are several key parts to managing SaaS:

• Inventory and Discovery: This is about making a list of all the SaaS apps your company is using. This includes apps that the company knows about and also any "shadow IT" apps that employees might be using without permission.
• Usage and Adoption Monitoring: This means watching how often people use the SaaS apps and if these apps are helping the company meet its goals.
• Cost Management: This is about keeping track of how much money is being spent on SaaS and finding ways to save money. This includes getting rid of subscriptions that are not being used and negotiating for better prices.
• Security and Compliance: This involves making sure that the SaaS tools are safe and follow all the rules. This means using access controls and data encryption to avoid legal and financial trouble.
• User Access Control: This means making sure that employees only have access to the SaaS tools they need.

Why is SaaS Management Necessary?

SaaS management is very important for a few reasons:

• Minimizing Shadow IT: It helps to control when employees are using apps that are not approved by the company. It also helps to find safe and approved alternatives.
• Providing Broader Visibility: It gives companies a full view of all the software they are using. This helps them to make better decisions about which apps are needed and which are not.
• Effective License Management: It ensures that software licenses are used efficiently. This means that companies don't waste money on licenses that are not being used.
• Ensuring Data Security: It helps to protect against data breaches by using access controls and encryption.

SaaS Challenges in 2025

Security Risks

There are many security risks associated with SaaS:

• Shadow SaaS: This happens when employees use SaaS apps without the company's knowledge. This can lead to data being stored in unsafe places.
• Insecure Configurations: If SaaS apps are not set up correctly, they can be vulnerable to attacks. This includes using default settings, weak passwords, and not using multi-factor authentication (MFA).
• Third-Party Risks: Plugins and integrations with other systems can create security problems. A plugin that is not secure can be a way for hackers to get into your system.
• Insider Threats: Employees can be a risk to data, either on purpose or by accident.
• Compliance Violations: Not managing SaaS well can lead to problems with laws and rules that protect consumer privacy.
• Deficient Data Security: Sometimes, companies don't know where their data is stored or if it is protected by encryption.
• Poor Access Control: If access is not managed well, people can get into systems they should not. For example, former employees may still be able to access data.

Operational Challenges

SaaS also presents some operational challenges:

• Lack of Visibility: Companies often don't know how many SaaS tools they are using or how much they are spending on them.
• Redundant Functionality: Many SaaS tools do the same thing, which wastes resources.
• Reactive Renewals: Companies have many renewals each year, making it hard to manage them all.
• Increased Operational Burden: Many licenses are not used, which leads to wasted spending.

SaaS Management Best Practices

SaaS Contract Best Practices

• Don't just use a pre-written SaaS contract template: Instead, customize contracts to match what your company needs. You should find a SaaS contract expert to help you with this.
• Decide if you need a click-through agreement, an enterprise contract, or both: If you have small customers, a click-through agreement will work, but big companies will need a more detailed contract.

SaaS Implementation Best Practices

• Offer full-service implementation: Help customers who don't have the resources to implement the software on their own.
• Give clients a choice between onsite and remote implementation: Let clients choose if they want someone to come to their office or if they prefer to do things remotely.

SaaS Security Best Practices

• Pick a solid hosting provider and take advantage of their security features.
• Always implement two-factor authentication.
• Implement Centralized User Authentication and Access Controls.
• Scan (and train) for Shadow SaaS.
• Include SaaS in Your Security Incident Response and Recovery Plans.
• Conduct SaaS Vendor Security Assessments.
• Vet Your Third-Party SaaS Integration Plugins.
• Continuously Monitor Your Entire SaaS Environment.
• Map SaaS to Your Compliance Programs.

Strategic Opportunities of SaaS Management

Managing SaaS well can also help your business:

• Identify SaaS Application Value: Know if employees are actively using each app.
• Accurately Forecast Technology Budgets: Understand how much you are spending so you can plan better.
• Quickly Assess Technology Assets for M&A Growth: Include technology costs in your business assessments.
• Manage License Optimization in Real-Time: Track usage to make sure you are not wasting licenses.
• Create an Enterprise-Wide SaaS Strategy: Develop a plan for how you will use technology in your company.
• Reduce Operating Expenses: Save money with efficient management.
• Scale SaaS Renewals: Use management tools to manage all your renewals.

Empowering Teams Through Effective SaaS Management

• Scale SaaS Governance Based on Risk and Impact.
• Treat SaaS as a Strategic Asset.
• Empower Line of Business Owners.
• Champion Internal Training and Adoption Campaigns.
• Manage SaaS Licenses in Real-Time.
• Build a Partnership Between IT and Finance.
• Take a Programmatic Approach to Renewals.

Conclusion

SaaS management is crucial for businesses that want to grow and innovate. It helps to save money, keep data secure, and support teams. By following these best practices, you can make sure that your company is using SaaS effectively.

Ready to take control of your SaaS investments? Consider requesting a demo of a SaaS management platform like AlphaSaaS.