By null / 5 Sep 2024 / Topics: Software Asset Management (SAM) Procurement Cloud cost optimization
SaaS has revolutionied the way companies operate, offering flexibility and ease of access. However, this convenience comes with its own set of challenges. Traditional procurement processes, designed to protect companies when buying from third parties, are being disrupted. Employees can now purchase software directly through websites or start using services for free, bypassing established checks and balances.
The complexity of SaaS governance varies across organizations. Large and regulated businesses, such as banks, often have rigorous processes involving multiple stakeholders, including cybersecurity, legal, architecture, and business owners. For smaller businesses, the focus may just be on cyber risk, particularly concerning data management and vendor certifications like SOC 2 or ISO 27001.
Procurement and vendor management teams are often left to address issues after the fact, closing the stable door once the horse has bolted. They are approached by SaaS companies informing them about the usage of their software within the organisation and asking for formal agreements or payments for what was initially perceived as free software. This unexpected spend and the increase in vendors to manage can conflict with the objective of saving money and time.
Managing software is not a new challenge. Organisations have long struggled with understanding what software they have, where it is, how much they are paying for it, and whether it is being used effectively. Insight's Software Asset Management services have been supporting customers for years in answering these questions.
According to Flexera's state of the cloud survey, 24% of software spend in the cloud is wasted. Ignoring this issue is not an option. It's crucial for procurement professionals to learn more about these challenges and take proactive steps. At Insight, we are already helping our customers navigate these SaaS complexities with the advanced technologies developed by Flexera.
