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Spendflo Procurement Handbook
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What is SaaS Spend Optimization?
Authored by Krishnaprasad C

SaaS spend optimization is the active SaaS management process to reduce the number of SaaS apps or licenses, and to right-size contracts in your company. SaaS spend optimization involves actively managing your company's SaaS (Software as a Service) ecosystem to reduce excessive app usage and licenses while aligning contracts. This process is crucial for avoiding wasted resources, security gaps, and unnecessary costs. By tracking all existing SaaS solutions, it identifies over-licensed and under-utilized apps.
SaaS has transformed software procurement, with companies favoring cloud-based solutions for enhanced customer and employee experiences. However, as SaaS adoption grows, so does the risk of mismanagement. Proper SaaS management and spend optimization are crucial to prevent budget waste.
SaaS waste often stems from overlapping subscriptions, unused renewals, and unclear ownership due to a lack of standardized procurement rules. This results in paying for similar tools or retaining unnecessary solutions. Effective SaaS spend optimization is essential to maintain efficiency and financial prudence.


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