Are you wasting your SaaS spend?

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Despite efforts to trim budgets and cut the bloat, Australian companies are losing millions of dollars each year on underutilised software as a service (SaaS). With Gartner forecasting local SaaS spend will grow by 18.3 per cent this year, if left unchecked, the problem is likely to get worse.

Globally, research has found 33 per cent of SaaS spend is wasted, with a whopping 60 per cent of SaaS buyers regretting renewal.

It’s little wonder, given companies are leaving more than half of licensed SaaS applications untouched, with wastage attributable to factors like forgotten platforms and purchases by employees no longer with the company.

Speaking to Digital Balance clients, Fullstory’s Kim Hann quantified the problem: “Different departments might go and buy a particular solution without procurement or the IT department knowing about it. And, over time, you’ve got a range of technologies that are similar. It’s one thing to buy a license and look at the number of logins with the assumption that your employees or team members are using that solution. But do you really know how effectively they’re using it? Or how deep they’re going?”

If that sounds like something that could be happening within list of colombia cell phone numbers your business, there are untold cost efficiencies to be made by streamlining your tech stack. But where to start?

Assess the needs of your business
Begin by conducting a comprehensive needs analysis. What do you need SaaS for? What functions within your business are essential versus nice to have?

Identify the critical needs. This means distinguishing between the tools essential for daily operations and those that are like the icing on the cake. Essential tools directly contribute to your core business functions, whereas nice-to-have tools may add convenience or minor improvements.

Speak to each department within your organisation to determine what they need, what they have, and what they could do without. Different departments will have different requirements, and understanding these needs can help you tailor your tech stack more effectively.