What is SaaS?
"SaaS (Software as a service) is today's most popular way of consuming software. Some SaaS companies examples include  Salesforce, Hubspot, BambooHR, Figma, Docusign or GitHub.
![A collection of Saas tools with their category indicated, all managed through Cledara.](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667d220ecd4fcaf918ede323_cl-saas-management.webp)
Why do I need a SaaS Management process?
Most companies purchase SaaS solutions to run their operations as SaaS is flexible, scalable and accessible. But as SaaS tools pile up, tracking which ones  youâre using gets harder and spend  increases almost uncontrollably.
For most companies, software is one of the top expenditure categoriesâright next to payroll. Yet Gartner estimates that 30% of software spend is wasted on forgotten, unused or duplicate tools.
Managing a couple of  subscriptions is simple enough. But the bigger your tech stack gets, the more difficult it becomes to manage.
So how do you prevent software sprawl? And whenâs the best time to get started with SaaS management?
(That they know about).
![Stack of apps and their combined cost](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667bea961e9376a84b95c1a4_cl-saas-managament-apps-min.png)
When should I start managing my SaaS?
As soon as you start paying for your first software subscriptions, we strongly recommend you start thinking about SaaS management. There are no-budget options available and it will allow you to grow faster, saving you time, money and headaches.
How do I start managing my SaaS?
You have two options to get started that donât require a budget. Hereâs what you need to know about them.
Use a SaaS management template
In the very early stages of a startup, software subscription information  typically lives in a spreadsheet since it is relatively simple to track. However,  this can quickly become a problem, since spreadsheet data goes out of date quickly as you hire people and add new apps
Download Cledaraâs free software management template for  a good starting pointâjust know that this is not a great long term solution, as a spreadsheet wonât scale with you as you grow.
Get started on a free SaaSÂ Â management tool
Starting with SaaS management software early saves you time and money as your business scales. With Cledaraâs Get Started plan, you can manage up to 15 apps for free and have peace of mind that your software is under control.
Whatâs wrong with managing my SaaS in spreadsheets?
While using a spreadsheet to manage your SaaS is better than nothing, you will very quickly discover its flaws as you use it. Hereâs everything you need to know.
No reliable source of truth
Your spreadsheet is only as accurate as the last time you updated it. This means that as soon as an app renews or someone purchases a new tool, it will be out of date.
A pile of manual admin
Managing software in spreadsheets requires you to manually capture invoices, review cards statements and reconcile payments. This is time-consuming and often requires you to âchaseâ stakeholders across the company to validate information.
Payments are high risk
If youâre buying software with shared company cards and don't use a dedicated system for software payments it's easy to lose control of what's being spent by who. More worryingly, business critical tools can be disrupted if cards are lost or blocked.
Limited visibility on tools
If youâre logging your tech stack in a spreadsheet, itâs hard to know whether a tool is really being usedâlet alone whether it offers a positive ROI.
If you ask your colleagues whether theyâre still using a tool, theyâre likely to just say âyesâ for simplicityâs sake. Without a way to know whether theyâre telling the truth or not, youâre going to be paying for tools that arenât being utilized.
What are the benefits of a SaaS management tool?
The goal of SaaS management is to improve the value people get from the apps they use, reduce the risk of uncontrolled tools in a company, and increase the effectiveness of the teams who rely on it to drive success.
SaaS management platforms like Cledara give you the peace of mind that people have the right software in their hands and that things are under control.
It sounds simple enough. But if youâre reading this, you know that companies use more SaaS applications than ever and that as the number grows, it gets exponentially harder to keep up with.
Here are the benefits you need to know about SaaS Management platforms.
![A graphic depicting the Benefits of SaaS Management.
The listed benefits are:
Ensure Compliance
Prevent Shadow IT
Control and manage SaaS Spend
Streamline onboarding and offboarding](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667be441262979ff8541fd91_cl-saas-management-benefits.webp)
Gain visibility over all tools
Itâs easy enough to manage one or two applications. But as your software stack grows, a lack of visibility quickly starts to become a problem.
SaaS management platforms like Cledara give you visibility over every piece of software your company uses and every dollar of tech spend, regardless how big or small.
From a single dashboard, you can see:
- A real-time view of all your apps
- Detailed insights into how much your team use every app
- The costs and renewal dates of every app
![Cledara's dashboard. The user can see the annual budget set for a tool as well as the renewal date.](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667c386cb000a189631855c6_cl-saas-management-visibility.webp)
Control your tech spend
According to a recent survey, only 47% of companies are confident that all their SaaS tools add value to their organization.
A SaaS subscription management platform like Cledara helps you set spend controls to ensure every dollar of the tech budget is being put to good use.
You can:
- Approve software requests
- Set spend limits and cancel subscriptions in a click
- Flag duplicates and underused seats
![Cledara's tool approval dashboard.](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667c28470b27c880087ad83c_cl-saas-management-approvals.webp)
Streamline Finance and IT admin
Every tool means a payment every month, an invoice, and multiple access requests. A SaaS management platform helps you streamline this admin burden by giving you a way to:
- Capture SaaS invoices automatically
- Sync payments and invoices to your accounting system
- Streamline software access in your organization
![Cledara's automatic invoice collection.](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667c2847e1c56b0a6c253b26_cl-saas-management-invoices.webp)
Hunt down Shadow IT
According to a recent survey, executivesâ top software-related concern is the risk of privacy and data breaches. And Shadow IT is probably where the biggest concentration of that risk is.
SaaS management platforms like Cledara give you peace of mind that Shadow IT is under control, by giving you:
- A process to approve new tools that you control
- Set spend limits and cancel subscriptions in a click
- Alerts on Shadow IT usage
The term âShadow ITâ refers to software and hardware that is being used within a company but hasn't previously been authorized, managed, or supported by the IT department or other relevant stakeholders.
Ensure compliance
SaaS tools are hard to track, and even harder to chase stakeholders to ensure you comply with regulation.
A SaaS subscription management platform like Cledara gives you the peace of mind that youâre ready to pass (or maintain) you certificates.
You can:
- Natively embed compliance in your purchasing processes
- Delegate compliance questionnaires
- Access templates to meet ISO27001 and SOC2
- Check whether your software vendors are certified
![Image showcasing the process of checking a tool's compliance](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667c284737b197a561f30480_cl-saas-management-compliance.webp)
For more tips and tricks to manage your software stack, visit our comprehensive Software Management Guide for startups.
How do I choose the right SaaS management vendor?
If youâre reading this itâs probably because you understand that managing SaaS with spreadsheets and corporate cards is far from optimalâand unfortunately, doesnât provide control or visibility over your tech stack.
You know you want something to solve that. Here are some requirements to help you find the perfect tool.
Identify the  specifics of your SaaS management journey
We recommend mapping the journey of SaaS at your company and asking yourself what needs to be done each step of the way. This will help you ask the right questions to the sales reps of your SaaS management vendor.
The SaaS management journey brings together all the steps that companies go through to manage software tools effectively, throughout its whole lifecycle. It consists of four steps: Discovering software, Buying it, Managing all the ins and outs, and finally, Canceling it.
What questions should IÂ ask SaaS management vendors?
SaaS management is a relatively new discipline because the proliferation of SaaS is also relatively recent.
Naturally, that leaves us wondering what do we exactly need from a SaaS management vendor. Hereâs what you need to know for every step of the journey.
![A graphic depicting the phases of the SaaS Management process.](https://cdn.prod.website-files.com/651d69a866763b8d1369908a/667c1b0acf1c1177bdb43270_cl-saas-management-stages.webp)
1. Discover
With +25,000 SaaS tools available, it becomes harder to discover the right app. Your software management vendor should make the discovery process easier.
Questions to ask on Discover:
2. Buy
Itâs never been easier to buy software. Trials are seamless, subscriptions roll over to paid commitments, and before you know it, you have yet another subscription on the corporate card â perhaps for several years.
Your software management vendor should provide secure payments to control software purchases and renewals.
Questions to ask on Buy:
3. Manage
Once youâve discovered and bought a software subscription, chances are your company will use it for months or even years. This doesnât mean that your work is done.
SaaS tools require regular care and dedication. Your SaaS management vendor should help you streamline that.
Questions to ask on Manage:
4. Cancel
It makes little sense to continue to pay for software that doesnât provide value. Yet vendors make it easy to buy software, but some make it challenging to assess the value and, sometimes, to even hard to cancel it.
Your SaaS management vendor should flag software thatâs providing questionable value and give you an easy way to cancel it, when needed.
Questions to ask on Cancel: