Strategic SaaS Management: Controlling Costs and Security in Your App Ecosystem
Technology has moved from stand-alone networks and servers to integrated cloud-based solutions. This has changed the landscape forever. Software-as-a-Service (SaaS) has become the go-to solution for application delivery models. Organizations have come to rely on SaaS applications to stay competitive. They can use them as scalable solutions to remain agile in the constantly changing universe of business.
Cloud-based solutions have allowed organizations to grow incredibly fast from a technical perspective. However, with that growth, organizations have opened themselves up to challenges they have never had to face before. Those challenges include security risks, cost control and data sprawl. Without a centralized SaaS solution, organizations can get lost in misconfigured controls and subscriptions.
This Sound Computers blog will discuss the importance of a well-defined SaaS management approach and how that helps organizations protect sensitive data and enhance visibility.
SaaS Landscape Complexities
SaaS has become mission-critical across organizations operating in a variety of industries. However, they have moved beyond mere core business tools. Some organizations are finding that some departments are installing and subscribing to new apps without IT approval or guidance. This leads to a fragmented digital landscape which can create environments with overlapping licenses and increased costs. In some situations, this can create security issues.
A 2023 report by Productiv found that large organizations typically have over 350 active SaaS applications. While that number is substantial, the underlying truth is that only a small portion of those applications are actively used. This means that organizations are not only paying for licenses they don’t use. They are also opening themselves up to hidden risks.
Controlling SaaS Costs
The most important aspect of SaaS management is to determine what applications are installed and which ones are mission-critical and which are not. One way to do this is by deploying a SaaS discovery tool to detail these aspects.
Once organizations have this information, they can identify:
- Overlapping functionality
- Duplicated or unused licenses that can be assessed and eliminated
This is essential in determining payment cycles and subscription renewals. With many SaaS vendors operating on an auto-renewal basis, IT staff needs to know when and how licenses are applied to their environment.
Managing Permissions
It is vital that organizations properly manage their SaaS applications. When they are unmanaged, security risks grow. Every app is an extension of an organization’s digital environment. Whether storing intellectual property or sensitive customer data, this perimeter needs to be managed and secure.
Organizational security begins with identity and access management (IAM). Employing multi-factor authentication (MFA) and SSO (Single Sign-on) can help tighten cybersecurity.
Compliance Considerations
For those organizations operating in regulated industries such as legal, healthcare or finance, it is even more critical to properly manage their SaaS tools. Data-rich environments must be compliant with HIPAA, GDPR or SOX regulations and standards.
With properly managed SaaS applications, security is heightened. When a security incident occurs, knowing the infrastructure and licenses associated with systems allows quick and targeted responses to isolate threats and minimize potential damage.
Automation and Management
Automation is key when scaling a multi-level digital landscape. To that end, organizations should employ solutions like Microsoft Defender for Cloud Apps, BetterCloud or Torii to provide efficient license management. It also allows for policy enforcement and workflow provisioning. Sound Computers can offer guidance as to how to best leverage this given your digital landscape.
When new employees start, IT teams can immediately determine access to applications by their location, department and role. The same can be applied to users leaving the organization with automated solutions ensuring their security clearances are revoked. This reduces human error and strengthens organizational compliance.
It also allows for policy-as-code principles which help organizations remain compliant and efficient. IT administrators can enforce file retention and data sharing from a single point. This raises security measures and helps organizations remain compliant with associated protocols and regulations.
Measuring ROI
One important consideration is that SaaS tools are not wasteful. How they are managed can be. When they are properly aligned with an organization’s strategic goals, they can drive collaboration and innovation. While these important aspects are recognized, the true return on investment (ROI) is difficult to accurately measure.
To better quantify their ROI, organizations can adopt the following:
- Utilization rate per application
- Cost per active user
- Mean time to provision/deprovision
- Security incident rate per application
Streamline the Environment
The modern digital environment of SaaS applications means more than just approving requests or monitoring usage reports. There needs to be a continued dedication to development and monitoring to build a strategic framework that addresses usage, renewal and decommissioning software and hardware that is no longer needed.
By adopting a policy-driven and proactive approach, organizations can address potential software waste and enhance security. This starts with ensuring SaaS applications provide a measurable organizational purpose.
If you are ready to streamline your SaaS environment, why not get started? Reach out to your SaaS management professionals at Sound Computers and schedule a consultation. We can help guide the implementation of SaaS management tools to help raise your efficiency and diminish your security risk.
