What is a SaaS Platform Example?

SaaS this and SaaS that…you can’t turn around without running into this acronym. (The only one that might have it beat is “AI.”) In light of that, we’re taking a closer look at how SaaS tools are leveraged, how to come up with a good SaaS management strategy, and will even help you select the best SaaS management platform! That’s a lot to pack into one blog, so let’s get started!

What Is a SaaS Platform Example?

We’re all familiar with SaaS software: cloud-based applications that solve just about every business problem you can think of. The SaaS model has become an increasingly popular business solution, as workers moved to remote and hybrid environments during the Covid-19 pandemic. SaaS solutions are characterized by their accessibility, scalability, and subscription-based pricing.

Let’s take a look at SaaS by the numbers:

• Company Usage: By the end of 2023, it’s projected that 99% of companies will be using at least one SaaS solution.

• Adoption Rate: Approximately 70% of total software used by companies in 2022 was SaaS-based. This trend is expected to continue, with the potential to reach up to 85% by 2025.

• Contract Lengths: In 2021, 48% of SaaS vendors reported having an average contract of one year, with 13% operating on a month-to-month basis and 11% with an average contract length of at least three years.

These facts may not surprise you, but here’s two that are a bit more shocking:

• Average Number of SaaS Apps: In 2022 alone, companies reported an average portfolio of 130 SaaS apps. Yes, 130!

• SaaS Spending per Employee: On average, companies spend $2,623 per employee per year. With employees each using about 8 SaaS apps, the costs quickly compound.

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What Is an Example of SaaS Getting Out of Control?

Let’s take a quick look at a hypothetical situation, one that might be familiar to you. In the bustling metropolis of Techton, nestled amidst gleaming skyscrapers and buzzing startups, sits the headquarters of Efficient Corp. This company quickly became renowned for its innovative approach to business solutions—and their rapid adoption of SaaS tools in order to streamline operations.

At the heart of Efficient Corp is Shannon, their diligent IT manager. She prided herself on keeping the company equipped with cutting-edge technology. But there was a problem: SaaS sprawl. Every department, chasing peak efficiency, had subscribed to a myriad of SaaS tools. Marketing had their suite of analytics and social media tools. HR had payroll, recruitment, and employee engagement platforms. The sales teams juggled CRMs, email automation, and lead tracking systems…the list was endless.

One day, Shannon received an urgent email from their CFO: their SaaS expenses were sky-high! So Shannon set out to take stock of the situation. As she sifted through the company’s SaaS inventory, she realized just how much they were hemorrhaging money on redundant and underused tools—not to mention the toll it was taking on her IT team as they attempted to keep up! The irony was palpable: a company that prided itself on efficiency was now bogged down by its tools.

The big lesson that Shannon came away with was that while SaaS products are an important part of daily business, without the proper management strategies, her tech stack can quickly get out of control. In addition to issues with overspending, Shannon identified security concerns since employees were downloading apps willy-nilly, and the heavy burden on her IT team with repetitive, manual tasks.

What’s Shannon to do? Simple: institute a rigorous SaaS platform management strategy and carry it out with the help of a SaaS management platform.

What Is a Typical SaaS Platform Management Strategy?

The steps that Shannon took to develop her SaaS management strategy are: gain visibility, assessing her needs, selecting the right tools, proactive management, and demonstrating success.

1. Gain Visibility. First, Shannon needed to know what she was working with. Using Lumos, Shannon centralized all of her vendor and user data, software spend, and contract information. And, with Lumos’ innovative approach to uncovering shadow IT, Shannon was able to see all the apps that employees had downloaded without the IT team’s knowledge.

2. Assess Needs. Some key questions had to be answered. What tools were Efficient Corp employees actually using? Where were there overlaps in functionality? Shannon carefully considered the fit and value of each SaaS tool in their tech stack. She also used Lumos to review the access that each employee had in order to make sure that each person only had access to the information they actually needed.

3. Select the Right SaaS Tools. Having the right tools includes eliminating redundancies and streamlining your tech stack. With all the information and analysis at her fingertips, Shannon was then able to select the best SaaS products (and the right number of licenses) for each team.

4. Manage the Tech Stack Proactively. Shannon was able to enable Efficient Corp employees with a proactive approach. With Lumos, she set up the AppStore so people could request access through Slack to the apps they need. To help out the IT team, she used Lumos to pre-set permissioning based on employee role. She also used Lumos’ automatic license management to optimize the number of active licenses and reduce costs without burdening her IT team.

5. Demonstrate Success. As Shannon implemented her strategy, she knew the final step was to go back to her CFO and demonstrate how effective her SaaS spend management was. She used Lumost to pull reports that showed how the average cost per employee significantly decreased due to her efforts.

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Lumos: Make Your SaaS Work For You

Ultimately, Efficient Corp’s journey was a lesson in balance. They learned that in the pursuit of efficiency, more isn’t always better. By leveraging Lumos, Shannon was able to save money and reclaim their identity as a company that truly understood and practiced efficiency.

By bringing control, clarity, and efficiency to your SaaS investments, Lumos ensures that your software works for you, not the other way around. Be like Shannon: manage your tech stack the right way—with Lumos. If you’re interested in learning how much you can save by using Lumos, check out our impact calculator. If you’re ready to see Lumos in action, schedule a demo today!