What are the critical challenges associated with managing SaaS subscriptions?
SaaS applications make it much easier for businesses to manage their tasks, teams, and work. However, controlling the SaaS could turn out to become a real headache. That’s because one business, in most cases, does use many diverse applications, and hence managing all of them may turn out to be somewhat complex. Here, we will identify several key issues related to managing SaaS subscriptions and provide solutions to address them effectively.
“SaaS” means software as a service. These are web-based applications that companies use for things like email, project management, or accounting. You don’t need to download anything; just open them in your browser. Such examples are applications like Google Workspace, Zoom, and Slack.
Challenge 1: Keeping track of multiple subscriptions
Most companies use a lot of different SaaS applications. For example, you might have one application for emails, another for project management, and a third one for communication. It’s challenging to keep track of all the subscriptions. It becomes very easy to lose track of which apps you’ve paid for, when payments are due, or which team is using which app.
How to Handle It: Use a subscription management tool to keep track of all the apps. Many subscription management tools will display all your subscriptions in a single view, along with their renewal dates and monthly costs, simplifying your operations and preventing any unexpected surprises.
Challenge 2: Managing Costs and Budgeting
SaaS apps typically charge either a monthly or yearly fee. Some SaaS applications may be quite expensive, while others may have hidden fees or require additional charges for additional features. These can add up over time. With a lot of subscriptions, it is challenging to keep track of budgeting, and you may not even realize how much you are spending.
How to Handle It: Go through your subscriptions regularly. Check which apps you are actually using and which ones you don’t need anymore. Cancel the ones you are not using. Also, compare different plans for the apps you need and choose the most cost-effective one. This will help you save money.
Challenge 3: Managing User Access and Permissions
With multiple SaaS applications, you have to remember who has access to what. In larger teams, you might want to grant some people access to certain apps or parts of an app, but not everything else. When you lose track of who can see what, they may have access unexpectedly.
How to Handle It: Use role-based access controls—RBAC. It lets you define varied access levels for different users. For example, you could grant full access to an app to a manager, while limiting a team member’s access to only specific features. This keeps your apps secure and makes sure that people see only what they need.
Challenge 4: Dealing with Vendor Management
Every SaaS provider is unique. While some SaaS providers offer excellent customer service, others may prove to be challenging to work with. You will also have to remember the terms and agreements for each vendor, renewals, and supporting possibilities. All these relationships can consume much time to manage—especially if you use many different applications.
How to handle it: Keep a record of contact details for each vendor, their contracts, and all possible support options. Set reminders on renewal dates of subscriptions or when you need negotiation for a better deal. This clear system keeps you organized and makes vendor management easier.
Challenge 5: Data Security and Compliance
While using numerous SaaS applications, you will encounter scattered data across various business types, which can complicate protection and raise security challenges. Most regulated industries have specific obligations regarding the security, backup, storage, and archiving of documents, which can create unique compliance issues. Managing security and compliance can be a challenging task.
How to Handle It: Ensure all your SaaS applications are abiding by best practices in security, which includes two-factor authentication and encryption. If your business is subject to compliance requirements, ensure that the apps you subscribe to fulfill all the necessary requirements. You can also ensure with the IT department that data in all platforms is safe and sound.
Challenge 6: Renewal Management and Handling of Contracts
Most of the SaaS applications have a renew date, and thus you would be able to keep track of when you need to renew anything. These dates can easily slip by, and you could end up either paying for services no longer required or even losing the discount for early renewal you otherwise get.
How to Deal with It: Set reminders for each one of your subscription renewals. Neither a calendar nor a management tool for the same subscription can make you forget some key dates. Additionally, consider conducting a pre-renewal review of the terms you previously agreed upon. It’s likely that some of your providers could offer you even more advantageous deals or discounts, provided you agree to longer-term locks.
Challenge 7: Overlapping Features
That would translate into a string of SaaS apps with similar features, like one for project management and another for task tracking. This kind of overlap is bound to cause confusion and result in you paying for more features than you actually need.
How to Deal with It: Before signing up for any new app, check out its features. See if they duplicate any of the apps currently in use. If they do, it is likely better to terminate the app with such overlapping features and stick with whatever works best to avoid extra, unnecessary costs.
Challenge 8: Keeping Up with Updates and New Features
SaaS applications undergo constant updates with new features or improvements. These changes can be hard to keep up with, especially when using multiple apps. Not knowing about a new feature may mean missing out on something that could help your business.
How to Deal with It: Follow the release notes and announcements of your SaaS vendors. Most apps have newsletters or blogs where they publish updates. Find some time to read about new features and reflect on whether they could be helpful for your business.
Conclusion
Without the right tools and strategies, the SaaS subscription can become quite complex, but it manages your subscriptions, tracks your expenses, and ensures you never forget a renewal. Keep the access control completely secure and all your data protected. SaaS apps enable you to overcome challenges and reap significant benefits while maintaining the viability of your business.