SaaS Spend Management
Learn about the world of SaaS spend management and how cutting-edge tools like Lumos can help you be a SaaS superhero.
Picture this: a world where SaaS management isn’t a mundane task, but an exciting adventure, one that calls for a hero with exceptional abilities. Enter our superhero: YOU! With Lumos as your sidekick, you’ll navigate the maze of SaaS subscriptions and renewals with the agility of Spider-Man and the strategic brilliance of Batman.
In our story, the villains are twofold: SaaS Sprawl, the many-legged sea monster made up of subscription after subscription, and Lord Shadow IT, a dark and devious figure who hides all the SaaS tools he’s squirreled away under his cloak. The impact of these nefarious bad guys? About $3,500 per employee per year for the average company. That’s right: most companies are spending way too much money on SaaS tools—and they probably don’t even know what they’re paying for!
It’s time to tackle these formidable foes. Armed with Lumos, you can cut costs and strategically invest in tools that propel your business forward (faster than a speeding bullet!). Let’s suit up, embrace our inner superheros, and get started on our journey of SaaS spend management.
At its core, SaaS spend management is a simple concept: optimize and/or reduce expenses associated with SaaS subscriptions. Optimizing SaaS spending is critical practice for modern organizations, particularly when reliance on cloud-based applications is rapidly increasing. However, while the idea is straightforward, the execution is often anything but. SaaS spend management strategies includes a wide range of activities, like:
SaaS spend management must take a comprehensive approach in order to be effective. By implementing a robust strategy, your organization can achieve significant cost savings, enhance operational efficiency, and better align your tech stack with your business objectives.
While the overall goal of SaaS spend management is to reduce expenses, other goals include gaining visibility, data collection and analysis, and leveraging automation. Let’s take a closer look at each of these goals to help understand the deep importance of spend management for your business.
Once your SaaS spend management team of superheroes is assembled, it’s time to start fighting the dreaded bad guys: the SaaS Sprawl sea monster and Lord Shadow IT!
The SaaS spend management process includes several steps and strategies, like gaining visibility, assessing needs, procuring tools, managing your tech stack, and demonstrating success on an ongoing basis. (Hint: these steps are all made easier if you leverage spend management software like Lumos!)
All of these steps can be carried out effectively with a SaaS spend management platform like Lumos. Let’s explore how our tech can help you control your SaaS expenditures and make the most of your technology investments.
SaaS spend management software is a specialized tool designed to help you effectively track, analyze, and optimize your spending on SaaS solutions. With Lumos, you’ll have comprehensive visibility into all your SaaS subscriptions and expenses, enabling you to make data-informed decisions about your SaaS spend.
According to the Gartner Market Guide for SaaS Management Platforms, this technology should include seven core capabilities:
Gartner also notes that the demand for these platforms has increased significantly. In fact, this report predicts that by 2027, 40% of organizations with multiple SaaS tools will move to using a SaaS management platform. This is an increase from less than 25% in 2022.
Let’s take a look at a real life example of SaaS management and how we helped one company save money and empower their IT team. Checkr, a company with over 1,000 employees, faced the challenge of managing a growing number of software tools and access requests—which were leading to skyrocketing software costs and significant inefficiencies. Their main goal was to achieve profitability while handling the overwhelming number of IT tickets.
Checkr focused on three SaaS spend management goals: cost savings, automation, and fast implementation. Leveraging Lumos, Checkr was able to:
The impact of using Lumos for SaaS spend management was significant. Checkr ultimately accomplished:
Curious to learn more? Click here to read a first-person account of Checkr’s experience with Lumos and SaaS spend management.
Remember that staggering statistic about how much companies spend on SaaS? Ready for another one? Spending on SaaS tools may reach around $197 billion in 2023, an increase of almost 18% compared to 2022. It’s time for your SaaS spend optimization montage—like any great superhero story, the journey with Lumos is all about transformation: turning what was once a chaotic, costly SaaS environment into a streamlined, cost-effective powerhouse.
We know there’s a lot of spend management software companies out there, all promising the best SaaS management tools—that’s why we’ve put together our IT vault with resources, the Lumos Impact Calculator, and compiled stories of IT heroes to help you make your own decision. Or, if you’re ready to take on the role of a SaaS spend management superhero, we’re here to help. Schedule a demo today—together, we’re unstoppable!