SaaS deployments have fundamentally improved company business processes. A few clicks is all it takes to deploy affordable, infrastructure-light technology to any team or department.
While the inherent elasticity and flexibility that subscription, cloud-based software advances is attractive, the ease and ubiquity of deployments introduces unintended consequences.
The most pernicious and perpetuated? Over-licensing.
Subscription pricing models drive companies to buy in anticipation of growth and license uptake. Vendor models incent companies to buy early -- effectively locking in promotional pricing and avoiding the hassle of future purchasing.
However, the regularity of SaaS deployments are rarely offset by corresponding audits or maintenance of spend. This creates financial strain through pervasive under-utilization of software.
The behavior is particularly costly when SaaS spend is decentralized and usage visibility is abstracted from central budget owners. What gets created is an environment of unregulated, under-reviewed license purchasing.
Introducing Service Reviews
To enable cultures of spend prudence, Cleanshelf has introduced Service Reviews.
Immediately available to Cleanshelf subscribers, this feature creates a seamless, highly-visual experience whereby budget owners can automate service asks to contract owners based on the contract expiry date of software in question.
Upon ingesting and displaying SaaS contracts -- a process made easier with an auto import feature and connection capabilities to popular accounting, invoicing and credit card systems -- Cleanshelf tags each contract with a service review alert prompt.
When the service review date arrives, Cleanshelf provides a dialogue box prompt that allows administrator to select the contract owner and request a service review of licenses in use.
Budget owners realize that business is challenging enough. These administrators, procurement or payables teams want to reduce friction and enable their colleagues’ success. So the de facto approach to SaaS invoices becomes pay what is due.
Consider findings from Cleanshelf’s State of Business SaaS Spend Report:
- The annual SaaS spend of a 200 person startup is over $2 million annually, or $10,000 per employee.
- On average, this same firm will be wasting $400,000 due to excess licenses, wasteful contracts or redundant purchases.
While inventorying and visibility into cloud app subscriptions may provide a centralized view of spend, discipline to perform actual contract review drives the action that reduces waste and overspend. Service Reviews shape a seamless connection between your contract owners and budget owners. Rationalizing utilization and reviewing the efficacy of the spend becomes a natural, normal behavior. And the cadence that develops systematically draws out pockets of over-licensing and reduces spend.
Reduce unused software and unnecessary spend
Gone are the days of static, Excel or spreadsheet based contract management. Without a major, programmatic investment, administrators can introduce a cost-control process enhancement. The improved transparency, complete with review functionality, means allocating investment in the software that delivers core business value and sunsetting contracts or licenses that drag down profitability.
Ready to experience Service Reviews and generally improve SaaS spend efficiency?