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What challenges do SaaS tools bring? 

The 4 SaaS challenges enterprises are facing.

SaaS tools challenges

Published: December 16th, 2022

The supply and demand of SaaS tools and solutions continue to grow. Especially in the Corona Pandemic. Due to the pandemic, companies and organizations around the world were forced to work remotely. The need to communicate with colleagues, col­laborate on projects, and be able to do all of this regardless of location played into the hands of SaaS companies.

SaaS models already account for 59% of the public cloud market, with $156 billion in revenue (globally). By 2026, revenue is expected to increase by 80% to $280 billion.

But with the increasing supply and use of SaaS come new challenges for enterprises. What are the SaaS challenges enterprises face today? 

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Verschiedne SaaS Herausforderungen, die SaaS-Tools mit sich bringen

1. SaaS Management

According to one study, the average company today uses 110 SaaS tools. Given the high number and the ongoing implementation of new SaaS tools, it´s not surprising that 49% of organizations consider managing this many licenses to be their biggest challenge. In addition, 26%  consider identifying unused licenses to be their second biggest challenge. 

2. Data visibility

From a survey, 55% of IT professionals feel the lack of visibility into user activity and SaaS data is their biggest SaaS challenge. In addition, one-third of respondents believe their organization wastes between 20-39% of their SaaS budget on unused licenses. 70% of companies would like a tool that would allow them to view all SaaS licenses and data. 

3. Purchase decision

Which SaaS tools does a company choose and who is responsible for purchasing and terminating licenses? These are exactly the questions companies are facing. A survey shows that 33% of the companies surveyed use a centralized and automated tool for purchasing and terminating licenses. 52% are considering implementing such a tool, but one-fifth (21%) have no policy at all for purchasing and terminating licenses.

4. Data protection

55% of organizations say their biggest concern is not knowing if their data is secure unless they host it on-premise. 

Despite the challenges that currently still exist in the SaaS space, SaaS tools are being used by many companies and the SaaS inventory of companies is growing. SaaS has become a flexible and cost-effective solution for businesses and organizations of all types.  

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