SaaS and cloud computing expenses

SaaS (software as a service) and cloud computing services bring valuable benefits and economy. Their popularity has reached a point where companies underestimate, or are unaware of, how much they’re spending. According to Gartner, the SaaS market will soon reach $150 billion.  Ask CFOs how much of that number is coming from their organization; most will be unable to give you a correct answer.

SaaS stats

SaaS stats

  • Cisco estimates that 75% of workloads will be SaaS-only by 2021.
  • According to Gartner, other cloud service categories experiencing growth are PaaS (Platform as a Service), expected to increase by nearly 22% in 2019, and IaaS (Infrastructure as a Service), projected at 27.5%.
  • 39% of the average mid-sized company’s SaaS stack turned over in 2018 (according to Blissfully), conveying either short-term use (a SaaS benefit) or poor decision-making.

SaaS and cloud computing expense challenges

Enterprise-wide applications combined with a hodgepodge of niche applications are rapidly increasing costs in this indirect spend category through unauthorized spending, functional redundancy and inconsistent utilization.

Lack of transparency for SaaS costs can be attributed to a number of obstacles:

  • Identifying how many subscriptions are being purchased, and keeping track of utilization and actual expenditures.
  • Ease of purchasing niche applications with credit cards, enabling employees and departments to run their own stacks.
  • Lots of little subscriptions adding up to big expenses and diminishing the organization’s ability to plan, budget and leverage buying power.

SaaS apps

Paying less for SaaS and cloud computing services

LAC Group takes a methodical approach to overcome the obstacles of lack of transparency, maverick spending, redundancy and ineffective utilization. We begin with an initial analysis and continuing with ongoing support:

  • Identification and review of SaaS and cloud subscription payments.
  • Reporting of our findings, analysis and suggestions for possible savings strategies.
  • Survey user groups and facilitate collaboration to assess needs and determine actual usage and create executive talking points.
  • Exploration of more flexible and favorable pricing options and terms, and ensuring contracts are in alignment with your peer group.
  • Post-contract support for the duration of the SaaS life cycle.

We only get paid when you save

Our contingency-based pricing means our services pay for themselves. We only engage with clients when the savings potential is great enough to increase your bottom line with a small portion to pay our fees.

The holistic, managed services approach of LAC Group

  • Every client engagement begins with an assessment of your operational and financial concerns, goals and objectives.
  • We work with the staff and systems you have in place.
  • Our programs and services are structured on a spectrum that ranges from “help us manage” to “manage for us”, based on your needs and circumstances.

More business applications are moving to the cloud for greater flexibility, easier access and other benefits, but don’t let the ease and availability lead you to paying more and renewing automatically for lots of unused SaaS subscriptions.

Can we help you control your SaaS and cloud computing costs?

Let us know your operational and financial concerns and we’ll let you know how we can help you manage and reduce your costs for software as a service and other cloud computing expenses.