By null / 9 Sep 2024 / Topics: Cloud cost optimization Software Asset Management (SAM)
SaaS offers unparalleled convenience and flexibility, but it also opens the door to potential inefficiencies and hidden costs. It's easy for companies to waste money on unused subscriptions without even realizing it. Flexera's survey found that 24% of software spend in the cloud is wasted. For a business spending $1 million a year on SaaS, this translates to almost $250,000 per year on software that isn't being used.
One of the primary reasons for this wastage is the lack of visibility into SaaS usage. It's easy to buy a subscription, but not so easy to track whether it's assigned to someone and whether that someone is actually using it. Turning off unused subscriptions sounds simple in theory, but in practice, it requires the right technology and expertise to identify and eliminate waste.
Another challenge posed by SaaS is the rise of Shadow IT. With the ease of subscribing to software online, many processes and controls put in place by IT can be circumvented. Employees can register accounts with work or personal email addresses and pay for subscriptions using credit cards, leading to hundreds of applications in use within a business that IT may not be aware of. This poses significant risks, especially when dealing with Personally Identifiable Information (PII) or confidential data.
For businesses in sectors like finance, healthcare, and government, compliance with information security standards such as ISO 27001 is crucial. Not being able to account for what software is being used and where the data is going can lead to regulatory headaches and potential data breaches. It's essential to have robust ITAM practices in place to mitigate these risks.
IT Asset Management (ITAM) tools, like those offered by Flexera, have made significant strides in addressing these challenges. These tools can now detect hidden SaaS usage. At Insight, we've been helping our customers eliminate SaaS waste for quite some time, and we know exactly where to focus efforts to achieve quick savings.
The fundamentals of IT Asset Management haven't changed, even with the rise of SaaS. Businesses need to discover what they have, figure out where it is, understand what it costs them, and see how it's being used. With the right tools and expertise, businesses can navigate the complexities of SaaS, eliminate waste, and ensure compliance and security.
SaaS Waste: Approximately 24% of cloud software spend is wasted on unused subscriptions.
Visibility and Shadow IT: A significant challenge is the lack of visibility into SaaS usage, leading to inefficiencies and security risks due to Shadow IT.
IT Asset Management: Robust IT Asset Management (ITAM) practices are essential for identifying SaaS waste, ensuring compliance, and maintaining security.
