Understanding the pros and cons of SaaS
23. May 2023
For many companies, SaaS, Software as a Service, is a must and hard to imagine doing without. However, what at first glance brings numerous advantages and has the potential to save the company a lot of IT costs, also carries some risks and the costs for this can quickly turn out to be much higher than expected.
To ensure that this does not happen and that you can benefit from the advantages that SaaS brings, we have compiled 7 steps for you below on how you can save SaaS costs.
In order to reduce the costs incurred by using SaaS, it is first and foremost important to find out exactly which provider you have chosen. You should pay particular attention to the type offered, i.e. the underlying pricing model. Basically, there are 3 different models used:
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This model is based on free basic software, where, however, numerous additional functions, only become available through the purchase of a paid premium version.
In this model, the individual use of the software is taken as the basis for calculating costs. This means that the more intensively a tool or software is used, the higher its costs will be. This cost model is thus quite difficult to control and estimate and can cause higher costs than considered.
In this model, the individual use of the software is taken as the basis for calculating costs. This means that the more intensively an app or software is used, the higher its costs will be. This cost model is thus quite difficult to control and estimate and can cause higher costs than considered.
Be sure to take a close look at what pricing model your SaaS provider offers. Depending on how much the software is used, one or the other pricing model may be the more favorable one for you.
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Make sure you set up a structured process to have a clear flow in case an offboarding process takes place. The basis for this should be a list of the current license inventory.
Analyzing data is essential. These analytics will show you exactly which tools are actually being used in your business and how often they are opened. This allows you to weigh exactly which app it makes sense to continue paying for.
Take advantage of the benefits that the free trial version of tools offers you. This way, before you spend money on them, you can assure that the features are actually useful for use in your business. This avoids incurring costs for tools that can´t be used afterward.
Employee surveys or other types of documentation should be used to locate unused applications. There is a lot of potential here to reduce costs and identify shadow IT. However, depending on the number of employees and tools, it can be very time-consuming to maintain an overview here.
Use tools, such as those from saasmetrix, to manage and track your SaaS tools. These tools make it easier for you to keep track and show you exactly where you can cut costs.
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