How to avoid a waste of money on SaaS applications?

4 reasons why your company is losing money

Ines Guerra · 7 min read

Statistics and data are some of the most valuable assets that industries have today. There is a whole market talking about it. Because of this, the growth in the last few years of the technology market, with the emergence of technology-based companies that work with hundreds of employees and house thousands of data, some companies create B2B SaaS to sell to other companies. B2B SaaS is the acronym for "business-to-business software as a service." Referring to cloud-based software businesses use for multiple tasks related to office productivity, accounting, customer relationship management (CRM), and numerous work-related activities. Companies typically subscribe to B2B SaaS solutions and regularly pay, typically monthly or annually.

Forecasts show how by 2023, 83% of enterprises will run exclusively on B2B SaaS, and public SaaS market growth will reach $88 billion by 2022.


4 reasons why your company is losing money

The figure of how many cloud apps a medium-sized company has, on average, companies with up to 300 employees, depends a lot on where you get the source. However, there is no doubt that there is an upward trend. The number of applications that companies use to automate more and more tasks, and internal management is increasing. SaaS examples that tech companies use daily are Gitlab, Jira, Trello, GitHub, Keeper, etc. Before we go any further, we want to show you four reasons your company is losing money on SaaS apps.

  1. You have more SaaS applications than you use.
  2. SaaS apps that are not used become a fixed cost, creating thousands of dollars in expenses without realizing it. 
  3. Weekly onboardings that produce numerous account registrations in all the company's apps and then are forgotten. 
  4. Suppose we do not have a tool that automates the cancellation of all accounts after an offboarding. In that case, we will lose money, and the company will run a risk in cybersecurity because, with these accounts, it will be possible to continue accessing sensitive company information.



This graph shows the biggest challenges facing technology companies today and their percentages. We can highlight how several of the most prominent can be directly associated with some of the reasons why companies lose money by misuse of SaaS.


Security tops the list with 36.5%. With the volume of data that technology companies handle, they will not continue to advance and grow if they do not encrypt their data and achieve the best cybersecurity. Budget is next on the list, as companies do not have an unlimited budget, and cutting costs will be essential. Another big challenge is the integrations offered by the different SaaS. It is not only the number of integrations provided. The quality of these integrations is also essential and how useful they are to companies for their SaaS management.

Your company has more apps than it uses, which produce unnecessary expenses and insecure scenarios. Why are we paying more money than we should be paying? To solve this question, we must know which applications and licenses we want to keep and which we want to highlight and analyze how much these redundant applications are costing us. It is a fact that little by little, founders, managers, or employees are looking for alternatives to using a spreadsheet and managing processes that require several aspects. Thus, the number of tools that are becoming necessary for the management of an organization is increasing. Today, fewer companies use a spreadsheet template to manage a project instead of Trello or other project management tools.


With all this, we conclude that how were projects managed a decade ago? With formulas that today we could consider inefficient but without the dilemma of which tool to choose for business management. Another problem we face may seem trivial, a question that can be based on trial and error that free trials only encourage, why not try a tool for 2 weeks to see if it suits my organization or not? The idea is excellent; there is no doubt about it. What happens is that many times you can not draw clear conclusions about which tool is better to manage your teams, with only 14 days of testing. This type of tool is usually here to stay in the solution is perfect. Added to this is the concern of team leaders not to involve employees in training and the use of tools that, in the end, will not be applied. However, the only possible and reliable test of these tools is valid if it involves the team. How can you know if a device is genuinely collaborative without affecting the team?

 

This is how we arrive at the current situation. Many managers sign up for free trials, and due to the lack of accurate testing of the application, they end up paying a subscription that remains a fixed cost. This is complicated to control and keep track of because the invoices are often sent directly from the cloud app to accounting@company.com. So even the manager himself is not aware of what he has contracted. Likewise, the accounting departments, even if they try to review useless expenses, it is difficult for them to discern the actual usefulness of the SaaS contracted. This problem generates a loss of economic resources, which we could avoid with the necessary control and follow-up. According to statistics, more than 87% of technology companies with employees between 100 and 450 people do not use all the applications they have contracted, a surprising fact in a scenario in which perfectionism and efficiency are pursued. Still, it is clear that it is not easy to locate this problem and give a solution, so in MyLenio, we have the solution for your company.


Another problem is the poor management of the accounts that a new employee needs when joining the company. Not only is it a matter of time, which the human resources staff will waste manually registering that employee's account in each of the tools they will need to perform their duties, a process that can take weeks. It will increase if the volume of recruitment of the company is high. The consequence is that sometimes these accounts end up in oblivion and continue to generate expenses that are difficult to perceive, but that exist.


And of course, we must not forget the case of employee offboarding. Staff turnover in tech-based companies is a fact. We face a labor market that is constantly growing and diversifying, and we all want to be part of it. As a result, it is increasingly common to change jobs. This has a direct impact on SaaS management. The most common cycle of this is that a manager signs up his team in the "X" cloud app to perform the "Y" task. This employee may be a trainee, in which case his time with the company is reduced even more. And therefore, there is a greater likelihood that he will forget his account in "X" SaaS will be overlooked. Once again, this results in a waste of resources by paying for something not being used.


It is important to remember the cybersecurity problem that this can cause by leaving information in users who are no longer in the company. That will have easy access to sensitive information, and that will put security at risk. 

Small and medium-sized companies are under greater threat because their resources are smaller, and wasting them poses a high risk. 

For these reasons, the number of large companies, those with more than 300 employees, that use application directories to have a clear view of what applications are being used in their organizations is 28%. At the same time, there is no clear solution for smaller teams, which have smaller budgets than large companies and have less equipment for tracking and monitoring these unusable accounts, and generate high expenses in SaaS management.


From MyLenio, we want to propose a solution that today only large companies use, for small and medium actions or companies that facilitate the pending subject of so many companies, the management of SaaS. Our main objective is to put an end to the unnecessary expense of SaaS accounts that are not used for various reasons, either because they are no longer used within the organization or because even though the cloud app is still in use, it has employee accounts that are no longer used. Without leaving aside the cybersecurity problem that this entails, it can lead to internal issues, but it will be more challenging to obtain compliance certifications.

With our tool, you will not only gain in time and efficiency, but you will also have an unbeatable user experience and optimal SaaS management.

What are you waiting for to make the best change for your company? B2B SaaS is the future of team management, and MyLenio has the solution for your company.

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