By null / 9 Sep 2024 / Topics: Cloud cost optimization Software Asset Management (SAM)
Recent reports, like Flexera’s ‘State of the Cloud’, highlight that SaaS governance challenges, especially cost management, are becoming more pronounced. IT spending continues to rise, often outpacing organizational growth. Flexera reveals that approximately 24% of software spend in the cloud is wasted. For small companies, this can mean hundreds of thousands of dollars, and for larger enterprises, it can amount to millions.
Just because something can be efficient and looks to be efficient, doesn't mean it will be. This is particularly true for SaaS. Many CFOs might be assured that their cloud subscriptions are being managed, but the reality often tells a different story. The evidence points to significant inefficiencies in SaaS management.
Steps to Address the Issue
These challenges can be addressed through IT Asset Management fundamentals. It's about understanding what's out there, where it is, how much is being paid for it, and whether it's being used. With the right tools and expertise, tracking SaaS has become more manageable. Partners like Flexera offer advanced technology to help with this1.
For finance leaders, tackling spiralling cloud costs and creating visibility into IT expenses is not just a challenge but an opportunity. By leveraging the right tools, practices and expertise, significant savings can be achieved.
Chief Financial Officers and finance leaders need to address spiralling cloud costs by improving visibility and management of SaaS (Software as a Service) expenditures, which are often inefficiently handled. By leveraging IT Asset Management fundamentals and tools from partners like Flexera, significant savings and risk mitigation can be achieved.
