LinkedIn just acquired his company. Now hear from one veteran tech CFO on how Cleanshelf helped with his SaaS challenges
Matt Gallatin, a seasoned finance professional and a veteran tech CFO, has worked for a number of successful companies including Drawbridge, OneLogin, ShareThis, Brand.net and Yahoo!
Matt Gallatin found Cleanshelf four years ago from a LinkedIn ad. He was the first CFO at OneLogin, the enterprise cloud identity software company, and was swamped with various SaaS challenges. As the company’s first executive finance leader, Matt showed up with bulging list of mission-critical to-dos: developing reporting mechanisms, establishing financial metrics and leading the department.
But the ad caught his eye.
SaaS management was an obvious problem. And while it wouldn’t likely sink the ship if left unaddressed, he saw down the road and recognized the cost, compliance and security significance of unchecked SaaS. Four years and two companies later, Matt has stayed a loyal Cleanshelf customer. His last company, Drawbridge, which uses machine learning and AI to build identity solutions that companies use to complete their views of their customers, was acquired by LinkedIn in May.
In a recent conversation, Matt shared wide-ranging insight on the SaaS challenges faced by enterprises. This included finance’s opportunity as a business partner and the role Cleanshelf played in the acquisition.
You’ve worked in the Bay Area for a number of tech companies (Drawbridge, OneLogin, ShareThis, Brand.net and Yahoo!). Tell us about the usual, in-house SaaS reality that had you looking for a solution.
Number one is that people are left to fend for themselves. They’re incentivized to find and use their own tools because there is little admin and oversight. In general, startups and growing tech companies haven’t had a dedicated in-house finance leader. They might use an outsourced CFO or service so there’s no nominally responsible person that’s actually paying attention.
SaaS optimization isn’t often the first thing a leader prioritizes. So why does it matter to find a solution?
“At the start, the marketing team may have four to eight SaaS tools. Not a big deal. But then it compounds.”
I’ll be honest, when I join a company SaaS management isn’t among my top five priorities. There are other ‘burn the house down’ type risks. Most of the time, bills are getting paid. But companies have finite capital and I know that the right tools are value accretive, but there’s no tracking or management to prove or sustain this. The marketing team may have four to eight SaaS tools. Not a big deal. But IT has four to eight SaaS tools, and Product has four to eight SaaS tools. Now the problem is compounding.
Did you have a moment when you decided it was finally time to buy?
After the 50th time going through some invoices you begin to wonder, “Are we actually using this?” As well, during the planning and budgeting cycle, it's much easier to have a tool that shows you exactly what you own, what you use and how much you pay. It becomes a forcing function. For many, the alternative is going through every AMEX statement or prepaid line items on the GL - a daunting SaaS challenge.
For a finance leader, what are some of the immediate role benefits from the tool?
We all prefer it when our colleagues see us as an empathetic leader instead of just being the “no” guy. I start by knowing how much we’re spending and having a real-time view of license use across all tools. Then, I can work with department leaders to make fact-based decisions – anchored in real data – on what to do with tools. We are also armed with better insight on renewals.
Can you share a few practical examples of how Cleanshelf has made a difference across the company?
“We go from having just a dollar perspective to a strategic perspective.”
At one point the company invested in licenses for an online education tool to support employee career advancement. While there were a few rabid consumers, no one else was using it. Cleanshelf gave us the insight that prompted a bigger conversation – beyond just spend management – about what we wanted to invest in. Finance was able to lead the discussion on the efficacy of plans and failures around employee development. We go from having just a dollars perspective to a strategic perspective.
Finally, how was Cleanshelf helpful during Drawbridge’s acquisition by LinkedIn?
Cleanshelf helped us in three main ways.
- It gave us credibility. An acquirer wants to know if we have buttoned up our targets. Their team is trying to see if ‘you have a sense of what you’re spending on stuff.’ Cleanshelf made it easy for us to track one of the biggest SaaS challenges - spending.
- The second, was that we could quickly access material agreements which were required during due diligence. Cleanshelf had us organized so we could access our software agreements and contracts without digging through emails in some inbox. Turning these over quickly smoothed the process.
- Finally, it helped clarify synergies. During due diligence, the acquirer’s technology team was able to see what tools could be wound down and over what time period. It also helped them see what applications, including on the R&D side, would be essential post-transition.
For more on how Cleanshelf helps CFOs and finance leaders with their SaaS challenges, reach out to our sales team for a demo or check out the following resources:
- The State of Business' SaaS Spend 2019
- Don't Burn Cash on SaaS!
- IPO or M&A - How SaaS Management Makes You More Ready
Ready to start controlling your enterprise SaaS?
Based in San Francisco, Cleanshelf is the best way for enterprises to monitor and manage their SaaS spend. Our SOC 2-compliant and AI-powered technology saves our customers up to 30% on fees. Cleanshelf already helps businesses like Drawbridge, Ellation, Crowdriff, and Qumulo, among others. Join them now and gain control of your enterprise SaaS.