10 Reasons you must continually audit your SaaS software and application software spending

Whether it be congratulations on the acquisition of a new company and cheers to the revenues it will add to your bottom line, or just toasting the success of the last financial year, I suggest before you pop the champagne, you examine the IT expense portion of your new financials.
Having presided over many pre- and post-diligence M&A transactions, and supported the I.T. function in multiple organizations, runaway spending on SaaS (Software as a Service) software and application software is often the number one item contributing to excessive spending and negative EBITDA. At Uptrend Labs we help our customers save money by identifying inefficiencies, reducing unnecessary expenses, optimizing licensing, and ensuring compliance. Here’s what to look for:

• Identifying Redundant Software – Auditing helps identify duplicate or overlapping software tools that serve similar purposes. By eliminating redundancy, the company can cut down on licensing costs and related support/maintenance fees.
• License Optimization – Many software licenses, especially for SaaS applications, are based on the number of users or features utilized. An audit can help determine if all licenses are being used effectively or if there are opportunities to downgrade licenses that are underutilized, leading to cost savings.

• Usage Analysis – Auditing software usage can reveal if certain applications are hardly used or not used at all. By discontinuing licenses for such applications, the company can avoid unnecessary subscription costs.
• Contract Negotiation – Armed with accurate usage data from the audit, the company is in a better position to negotiate contracts with SaaS vendors. This can lead to volume discounts or more favorable terms, reducing costs.
• Avoiding Non-Compliance Fines – An audit ensures that the company is compliant with licensing agreements and usage terms. Non-compliance can result in hefty fines, which can be avoided through proper auditing and management.
• User Training and Support Optimization – By understanding which applications are causing the most support requests or confusion among users, the company can invest in targeted training or support resources, reducing the overall support burden and increasing efficiency.
• Performance Analysis – An audit can uncover software applications that are causing performance bottlenecks or compatibility issues. Addressing these issues can lead to increased productivity and cost savings due to improved system performance.
• Strategic Decision Making – A comprehensive audit provides a clear overview of the software ecosystem. This information empowers decision-makers to make informed choices about software investments, upgrades, and replacements, resulting in more cost-effective strategies.
• Renewal Assessment – Prior to renewal periods, an audit can guide the company in deciding whether to renew certain software licenses, based on actual usage and need. This can help avoid automatic renewals for software that’s no longer beneficial.
• Scalability Planning – Auditing software usage patterns can help the company plan for growth more effectively. By understanding how software needs change with increased staff or business expansion, the company can allocate resources more efficiently.

In conclusion, a well-executed audit of SaaS software and application software can provide insights that allow the company to optimize its software environment, reduce unnecessary expenses, negotiate better deals, and ensure compliance, all of which contribute to substantial cost savings in the long run.

At Uptrend Labs, we have the depth of understanding and the technological know-how to guide you through the complexities of a full SaaS software and application software audit process. Contact us to discover a new kind of collaboration, a new kind of approach to technology, and business, and of course, the best practices for ensuring your I.T. function helps deliver the revenues and profits you planned for.