Budgeting for SaaS: What You Should Avoid

Man pointing at a concept of SaaS

Of course, you want to leverage all your software-as-a-service (SaaS) subscriptions to help your employees work smarter and faster. The problem is that you still have to work within a budget. This will make sure that you don’t end up wasting your budget on unnecessary SaaS subscriptions, also known as SaaS pollution. But how do you that? By avoiding these mistakes.

Under-Negotiating (Or Not Negotiating at All)

Pricing and Contract Terms You could easily spend the bulk of your SaaS budget by not asking for discounts, paying full price, and purchasing subscriptions reactively and desperately. You can also worry about future terms later — service fees, cancellation fees, as well as automatic price increases. You could deal with those later on. Also, you need to invest in the right tools such as a SaaS management platform to help you evaluate SaaS usage against scope. It could give you leverage during negotiation. Basically, without these crucial details, you’re basically wasting money by making uninformed decisions.

Accidental Automatic Renewals

Plenty of organizations accidentally renew some SaaS services that they don’t really need or want to use anymore. It is true that this doesn’t always cost that much. However, if you add up the costs over time, you’ll see just how much you would’ve saved. Make sure that you keep track of all recurring SaaS subscription renewals or at least monitor the most critical and expensive ones. These could include DNS renewals and SSL certificates. Failing to renew on time could lead to your site crashing.

De-Provisioning Employee Offboarding

Offboarding employees could sometimes be a messy and emotional affair. However, you need to make sure you know which subscriptions they use specifically, along with shadow products. Otherwise, you could be dealing with security issues from irate offboarded employees.

Unused Licenses and Underused Logins

Plenty of officers or those high up on the ladder have unlimited access to SaaS service logins and tools that they don’t really use. Put simply, if they don’t use it, you’re spending your money on products you don’t need.

Seemingly insignificant costs could add up over time. It could result in unnecessary and huge dents in your bottom line. Remember, avoiding these mistakes would save you money and valuable time in the long run.