Advantage Blog | All Things Communication Technology

Key Factors in Evaluating SaaS Management Vendors

Written by Advantage | Jun 25, 2024 2:59:17 PM

The prevalence of SaaS technology in all aspects of business is more significant than ever before, and it’s only going to continue. Make sure to stay ahead of the curve before your IT team inevitably struggles to manage, secure, and budget your SaaS stack. 

A successful relationship between a global enterprise and a SaaS management platform (SMP) will free up IT team resources, enforce governance policies that minimize risk, and provide complete transparency into app usage, costs, and optimizations. 

Discover how to assess the right solution for your organization in this article. 

What is a SaaS management platform (SMP)? 

A SaaS management platform (SMP) is an all-in-one solution for managing a business’ SaaS applications.

SMPs clean up inefficiencies and business risks with centralized visibility, control, and data-backed insights into all application usage. This approach realigns budgets, operational needs, and IT workflows so that an enterprise only uses essential and secure apps. 

This vendor should be flexible to an enterprise’s changing needs and scalable to meet the growth of new applications, users, and global locations. 

Understanding global SaaS management needs for enterprises

Due to their size and various office locations, global enterprises are at risk of SaaS sprawl. This issue occurs when individual teams or employees purchase and use cloud applications without consulting IT or using the company’s procurement policy. 

The result is redundant apps, higher costs, security weaknesses, and other concerns that overwhelm enterprise IT teams. The average enterprise spends between $600,000 and $12 million annually on SaaS tools, so allocating these resources requires a strong argument for their use.

The process is further complicated because it involves more than just IT—procurement, finance, and end-user teams also need representation for their interests. 

Security and compliance in a global context

Data security is paramount to an organization’s reputation and business success. SaaS application logins are a particular vulnerability for enterprises. The sheer volume of apps used and their associated licenses strain IT teams responsible for managing authorized user access. 

When in-house teams go rogue and use an application without IT’s knowledge, it creates a shadow IT issue. One of the most important benefits of SMPs is their ability to scan your network to find all SaaS applications. IT teams can regain control and compliance over previously unknown SaaS inventory. 

Evaluate SMP vendors for their security measures, compliance certifications, and ability to meet global data privacy regulations. As a multinational enterprise, look for providers that offer features that ensure compliance in the regions where their offices operate. 

Evaluating the reliability and performance of SaaS providers

Reliable SMPs will have a proven track record with enterprises of similar size and industry to yours. Ask to see relevant case studies and to speak with a current customer to discuss their experience. 

We have a variety of technology review sites to consider to improve our understanding of a vendor’s strengths and weaknesses. To determine whether an SMP is right for your needs, look into sites like:

Support and service considerations for global enterprises

When assessing potential SaaS management platforms, prioritize support and service from a global perspective. Look for a provider with a geographically distributed infrastructure that can ensure consistent quality of service across all office time zones and languages. 

Comb through their service-level agreements (SLAs) and don’t be afraid to negotiate so that response times meet stakeholders' satisfaction. Prioritizing robust SLAs enhances the enterprise’s security, maximizing its investment regardless of where or when it’s used.

Importance of integrations and open APIs

A crucial evaluation factor is the SaaS management partner’s ability to integrate seamlessly with the enterprise’s IT infrastructure and procurement tools.

If pre-built integrations aren’t available, the vendor should have open APIs allowing data collection and sharing with other business tools. This approach ensures enterprises maintain their data independence. Should the enterprise switch to a different platform in the future, the transition is much easier when data control remains with the business. 

Ask for an example of the platform’s reporting and analytics dashboard during the procurement process. Make sure the solution provides quality insights into key metrics around usage patterns, return on SaaS stack (ROSS), categorized spending, downtime, open licenses, and more. 

Assessing vendor roadmap and financial stability

Enterprises considering SaaS management vendors must thoroughly evaluate two vital aspects: roadmaps and financial stability.

Ensuring the services and plans offered by MSPs align with the organization's strategic objectives and future needs is critical. Examining the roadmap for innovations that help your company grow and remain competitive is key.

Enterprise teams must also assess a vendor’s financial health to mitigate risks and grow long-term partnerships. It involves scrutinizing financials, including revenue growth, profitability, and cash flow, to gauge the vendor’s ability to provide consistent, ongoing support.

By prioritizing alignment with strategic objectives and selecting financially stable partners, in-house teams make informed decisions that support their long-term business plans and future innovation needs.

Completing the SaaS vendor selection process in global enterprises

Now that we understand the importance of a comprehensive solution to manage all SaaS applications for global enterprises, let's review our checklist to make a final decision.

1. Scope out must-have features

Identify essential features such as discovery and inventory capabilities, scalability, and robust support across all locations.

2. Shortlist potential options

Research leading SMPs focusing on their global presence, case studies, and customer reviews.

3. Issue a Request for Proposal (RFP)

Send an RFP outlining requirements, functionalities, and integration capabilities to shortlisted companies for responses.

4. Review security and compliance

Evaluate security practices, compliance certifications, and data privacy capabilities across global locations to ensure alignment with regulatory requirements.

5. Ask for customer references

Request referral information to contact current clients for feedback on user experience and support quality.

6. Do live demos and proof of concepts (POCs)

Schedule live demos with team members for feedback and conduct POCs to test functionality in the working environment.

7. Compare costs

Analyze the total cost of ownership (TCO) considering subscription fees, onboarding costs, integration charges, etc., rather than solely focusing on pricing.

Final SaaS management vendor considerations

Remember to involve key stakeholders and decision-makers. The right vendor will align with current strategies and future needs. Look for one who operates like a partner and provides value beyond contractual obligations. 

While SaaS management platforms (SMPs) have many benefits, they are knowledgeable about only one thing: the SaaS ecosystem. An enterprise’s IT landscape encompasses more than that, adding one more disjointed solution to a host of other business tools. 

Consider Advantage—a holistic connectivity partner—to cut down on vendors and gain a comprehensive view of all IT inventory. They have the expertise and resources to support procurement, manage contract renewals, and offer a state-of-the-art Command Center with real-time insights beyond outdated reporting methods (like spreadsheets).

This option is the most cost-effective route due to the savings of bundling and Advantage's policy of waiving their service fee when clients consolidate their IT-managed services. 

Conclusion

The right SaaS management partner can eliminate SaaS sprawl, optimize costs, and maximize the value of app investments. The trick is identifying a partner that meets the requirements of a multi-location enterprise. 

Security, support, and scalability are necessary features, but additional functionalities unique to your business are just as essential during the evaluation process.

A global connectivity partner is perfect for enterprise teams that lack the resources to source, assess, and implement global SaaS management. Advantage's experts integrate SaaS management into your enterprise’s connectivity lifecycle.

Contact Advantage’s global connectivity experts to streamline every aspect of enterprise communication technology. 

“Command Center" is a service mark of Advantage Communications Group.