What is SaaS Management?

As SaaS continues to reshape IT, manual tracking and spreadsheets can’t keep up. SaaS Management gives you a clear, structured way to manage a fast-growing SaaS landscape. Software as a Service is now a core part of your IT environment, used across teams, regions and business units. According to Gartner's latest forecast, global end-user spending on SaaS is expected to reach around $315 billion in 2026, underscoring why SaaS Management has become a strategic priority for CIOs, CFOs and finance leaders.

However, SaaS is easy to buy, deploy and scale, but hard to govern. IT teams typically have visibility into only about two-thirds of SaaS applications in use, meaning roughly one-third operate as shadow IT.

Without the right controls, you risk unused licenses, rising costs, security gaps and compliance issues. SaaS Management helps you stay in control by tracking usage, managing access and optimizing spend across all your SaaS applications. That’s why many organizations rely on dedicated SaaS Management capabilities to align IT transparency with financial accountability.

In this article, you’ll learn what SaaS Management is, how it fits into cloud computing, which challenges organizations face today and how you can get more value from your SaaS strategy.

To fully understand SaaS Management, first, we need to understand what Cloud computing is. Cloud computing enables companies to use IT resources flexibly and cost-effectively. Various models exist here, namely Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).

SaaS represents a cloud computing model in which companies use software applications over the Internet instead of installing and maintaining them themselves. The SaaS provider makes the application available and takes care of the infrastructure and maintenance. A major advantage of SaaS is the ease of implementation and use, as no local installation is required. However, customization options are limited and control over data and security rests with the provider. Examples of SaaS include Gmail, Salesforce, and Dropbox.

PaaS provides companies with a platform on which they can develop, test, and deploy applications. The PaaS provider offers the necessary infrastructure while the enterprise focuses on application development. PaaS offers the advantage of allowing enterprises to build custom applications without the overhead of infrastructure management. However, there may be limitations in the programming languages supported and security concerns. Examples of PaaS include Google App Engine and Microsoft Azure.

IaaS provides companies with basic infrastructure such as virtual machines, storage, and networks. Enterprises are responsible for managing the applications, operating systems, and middleware. IaaS provides the most flexibility and control because enterprises have full control over the infrastructure and can scale it as needed. Examples of IaaS providers include Amazon Web Services (AWS) and Rackspace.

Like other areas of IT, SaaS environments include assets that require tracking and ongoing management. These assets aren’t physical. They are intangible assets such as licenses, subscription plans and contracts. While SaaS assets may seem simpler than on-premises infrastructure, the pay-for-what-you-need model adds complexity. Renewals, compliance terms, access rights and user assignments change frequently, making manual tracking difficult and error-prone.

A SaaS Management tool discovers all your SaaS, gives you the visibility and structure needed to stay in control. With the right features and reporting, you improve accuracy, reduce effort and manage SaaS assets more efficiently across your IT environment.

Over the past two decades, Software as a Service has moved from a niche option to the default way teams work. Today, most companies rely on hundreds of SaaS applications across IT, finance, HR and every other department.

This shift brings speed and flexibility, but it also creates new challenges. Subscriptions are easy to buy, easy to forget and hard to track at scale. Analysts estimate that organizations waste up to thirty percent of their SaaS spend on unused or redundant licenses. Gartner also reports that by the end of this decade, most IT budgets will be spent on cloud-based services.

That’s where SaaS Management comes in. It gives you visibility into what you use, who uses it and what it really costs. Instead of chasing spreadsheets and renewal dates, you manage SaaS from one reliable source of truth.

SaaS Management grew out of classic IT and Software Asset Management, but it’s built for a cloud-first world. It helps you regain control as your application landscape grows—without slowing your teams down. With the right approach, you reduce waste, strengthen security and make smarter decisions with confidence.

SaaS Management matters because growth should never mean losing control.

Curious how we help you get full visibility into your SaaS landscape and control costs?

A SaaS management framework consists of specific areas. To achieve an optimized and efficient SaaS management system, monitoring and maintaining each of these areas individually is critical for the success of SaaS management as a whole. The exact breakdown of a SaaS management system varies per the company and their individual requirements. However, there are some standard areas we want to highlight.

• SaaS Subscription Management: SaaS subscription management covers the procurement, maintenance and right-sizing of SaaS subscriptions. This includes processes such as upgrading or downgrading subscriptions plans, ensuring subscription renewals are paid on time to avoid non-compliance or fees, and proactively monitoring SaaS subscription usage and performance to optimize costs.
  
  
• SaaS Spend Management: SaaS spend management is the process of maintaining and optimizing SaaS-related expenses. This includes negotiating prices with vendors, maintaining license and subscription renewals, and performing license right-sizing procedures to optimize usage and eliminate unnecessary costs.
  
  
• SaaS Project Management: SaaS project management, also known as SaaS implementation, refers to the process of onboarding and customizing SaaS products or tools. Furthermore, SaaS project management includes the maintenance and optimization of SaaS products throughout their lifecycle.
  
  
• SaaS Contract Management: SaaS contract management involves carrying out business-vendor negotiations, including pricing and terms/conditions agreements, maintaining compliance, and making data-driven decisions that require contract adjustments or amendments.
  
  
• SaaS Asset Management: SaaS asset management tracks and analyzes SaaS assets in a centralized environment to present fully visibility into the entire SaaS stack. This process enables the discovery of unauthorized or unsanctioned SaaS usage. It also includes processes to identify license duplication, perform usage-to-cost comparisons, and subsequently optimize these SaaS assets.
  
  
• SaaS Inventory Management: SaaS inventory management is an aspect of SaaS asset management which covers the tracking and reporting of SaaS inventory. SaaS inventory includes cloud software licenses and subscriptions plans, contracts and SaaS tools.

Each area of SaaS management contributes to the success of another. Due to its general complexity, forming a SaaS administration to manage the inner-workings of a SaaS management system and oversee it as a whole is a great way to establish clear roles and responsibilities. On the contrary, unclear roles and responsibilities can result in dysfunctional SaaS platforms, inaccurate reporting, overspending and an increased risk of security breaches or non-compliance. By simply pairing a SaaS administration with a strong and versatile SaaS Management Platform (SMP), you can effectively manage your system while simultaneously converting time-consuming, labor-intensive tasks into automated and streamlined SaaS system functions.

1. Security & data protection

Security is a cornerstone of SaaS management. Data should be encrypted both at rest and in transit to protect sensitive information in case of a breach. APIs connecting SaaS applications to other platforms must be secured to prevent unauthorized access. Clear access control policies, including well-defined user roles, permissions, and authentication measures, help minimize insider threats. Regular audits of security and compliance procedures ensure that policies and regulations are consistently adhered to, helping organizations detect and address risks early.

2. Spend optimization

Effective cost management is essential for maximizing SaaS investment. Organizations should regularly review subscriptions to ensure licenses match actual usage, adjusting them as needed. Consolidating vendors where possible reduces complexity and lowers costs. Automating subscription renewal tracking helps prevent unexpected charges and ensures that organizations only pay for what they actually need.

3. SaaS discovery & shadow IT prevention

Shadow IT, or the use of SaaS applications outside IT oversight, can create security and compliance risks. Automated discovery tools help identify all SaaS applications in use across the organization, including unsanctioned software. Clear policies for SaaS procurement and usage minimize unauthorized adoption, allowing IT teams to maintain control over the SaaS ecosystem.

4. Compliance & risk management

Maintaining compliance with industry regulations such as GDPR, HIPAA, or SOC2 is critical. Centralized contract management ensures that all agreements, terms, and renewal dates are easily accessible. Combined with clear incident response protocols, organizations can respond efficiently to data breaches or service interruptions, reducing risk and maintaining trust with stakeholders.

5. Performance monitoring & optimization

Tracking SaaS usage and adoption allows organizations to optimize workflows and eliminate redundant tools, improving operational efficiency. Ensuring that SaaS applications integrate smoothly with existing systems prevents bottlenecks and disruptions. Regularly assessing SaaS strategy enables continuous improvement, helping organizations extract maximum value and ROI from their software investments.

6. Employee training & communication

Employee education is vital to effective SaaS management. Teams should be trained on approved tools, security best practices, and internal SaaS policies to ensure consistent adoption, compliance, and productive use across the organization.

By implementing these best practices, organizations can transform SaaS management from a reactive, labor-intensive task into a strategic, value-generating function that enhances productivity, strengthens security, and supports business growth.