SaaS Management: An In-Depth Guide for IT Teams

SaaS management is becoming crucial for IT teams as they face increasingly complex challenges.

These challenges can include everything from spending thousands of dollars on unauthorized apps to grappling with unsecured accounts left behind by former employees. The rise of Software as a Service (SaaS) has made work more flexible and efficient, but it has also introduced serious risks, including spiraling costs, data breaches, and compliance headaches. With SaaS apps just a double-click click away for anyone to download, managing them manually is often a recipe for disaster.

That’s where SaaS management comes in. This strategic approach to managing your SaaS environment gives your IT team the visibility and control needed to turn chaos into a secure, organized, and efficient environment.

In this guide, we’ll explore the fundamentals of SaaS management, helping you learn all about:

• SaaS management FAQs 
• What is SaaS management? 
• What is a SaaS management platform?
• Why is SaaS management important?
• Key benefits of SaaS management for IT teams 
• How to get started with SaaS management

What is SaaS management?

SaaS management is the practice of overseeing, governing, and optimizing the use of SaaS applications within an organization. This includes managing user access, tracking subscriptions, monitoring security, and eliminating shadow IT. On average, organizations use 125 different SaaS apps—and as your team continues to adopt more cloud-based tools, the need for comprehensive SaaS management grows.

For IT teams, SaaS management isn’t just about keeping track of applications. It’s about restoring governance in an era where every department is a potential software buyer and ensuring that critical business data remains secure. From monitoring usage to deprovisioning employees efficiently, SaaS management provides the necessary structure to maintain security and optimize spending.

What is a SaaS management platform?

SaaS management platforms are designed to give your IT team full visibility and control over your organization’s software landscape, offering a centralized solution to manage it all—from application inventory to SaaS user management.

These platforms serve as a powerful hub that automates and streamlines the complexities of managing dozens, if not hundreds, of SaaS applications. Think of it as an RMM (Remote Monitoring and Management) tool, but for cloud software. 

SaaS management platforms are built to handle the unique challenges that come with a rapidly expanding SaaS environment, including:

• Creating SaaS visibility and a detailed inventory
• Tracking usage and license management to reduce SaaS waste
• Identifying and eliminating shadow IT to enhance security
• Automating SaaS user management

By offering features like real-time analytics, automated reporting, and alerts for potential security threats, a SaaS management platform can empower your IT team to make data-driven decisions. They simplify administrative tasks and give you the ability to quickly adapt to evolving security and compliance needs.

Why SaaS management is important?

The sheer ease of adopting SaaS tools has created a landscape full of hidden dangers and inefficiencies. Without a strategic approach to SaaS management, your organization faces some significant risks, including:

Data breaches and security threats

Shadow IT statistics prove that unauthorized apps remain a major headache for IT teams. These apps lack secure oversight from IT, putting your sensitive company data at serious risk. Add in shared credentials, abandoned accounts, and mismanaged permissions, and you’ve got a recipe for potential data breaches. Without centralized visibility, companies are five times more likely to experience a cybersecurity incident. A good SaaS management platform tackles these vulnerabilities by giving IT teams the visibility they need and strengthening overall security.

Rising costs and budget overruns

With subscriptions often costing $20 or more per user per month, SaaS expenses can quickly spiral out of control. In fact, companies use just 49% of their SaaS licenses on average, meaning 51% are paid for but unused. Redundant apps, unused licenses, and forgotten renewals waste valuable resources. SaaS management platforms help curb these costs by providing insights into app usage, optimizing licenses, and managing renewals—ensuring your SaaS budgeting is always efficient.

Compliance and governance issues

Unauthorized or poorly managed software can easily lead to compliance violations, resulting in hefty fines and damaged reputations. Just think: non-compliance with regulations like HIPAA, SOX, PCI DSS, or GDPR can cost a fortune. And if you have no visibility into how shadow IT apps are handling your data, mitigating these risks becomes nearly impossible. SaaS management software helps enforce governance policies, ensuring that data is handled securely and in line with all regulatory requirements.

Operational inefficiencies

Manually managing user accounts isn’t just a hassle—it’s a risk. Studies reveal that some companies take months to properly offboard employees, leaving behind active accounts that could be misused. 83% of employees admit to having continued access to accounts from a former employer. Pair that with the fact that 75% of insider threat cases are linked to disgruntled ex-employees, and you’ve got a serious security issue. SaaS optimization streamlines the entire user lifecycle, from onboarding to deprovisioning, cutting down errors and boosting efficiency to keep your business secure.

Key benefits of SaaS management for IT teams 

Let’s explore the main advantages that SaaS management brings to the table:

1. Enhanced visibility and control

SaaS management platforms provide much-needed visibility into your IT environment, bringing order to what can otherwise be a chaotic mess of cloud apps.

A critical feature of these platforms is SaaS discovery, which automatically detects all applications in use, including shadow IT. This ensures that no software goes unnoticed and helps IT teams build a comprehensive app inventory, track usage in real-time, and pinpoint redundant or abandoned subscriptions.

As a result, it restores governance and control, making it easier to:

• Create a comprehensive app inventory
• Track user behavior and spot shadow IT
• Optimize licenses and cut overspending
• Reduce risks from unsanctioned software

2. Stronger security posture

Visibility also means better security. SaaS management solutions help IT teams respond quickly to threats, like detecting shared credentials or tracking shadow IT. Some even send alerts for vendor security breaches or suspicious activity. 

Heather Simek from RJ2 Technologies, an MSP that leverages Auvik to manage their clients’ SaaS environments, captures the critical nature of these issues.

“You’re talking about money being spent that companies don’t even realize they’re spending. Or the possibility of people taking files with them when they leave the company. Or shared passwords that people don’t even realize they’re sharing. This area of security doesn’t get a lot of attention, but these are exactly the kinds of vulnerabilities that lead to breaches and incidents.” 

By using Auvik’s SaaS management software, Heather’s team was able to uncover and address these overlooked vulnerabilities, tightening security and regaining control for their clients.

3. Meeting cybersecurity insurance requirements 

Meeting cybersecurity insurance requirements has become increasingly important for organizations. Many insurers mandate comprehensive security practices, such as effective patch management and monitoring shadow IT, as a condition for coverage. SaaS management platforms help fulfill these requirements by ensuring software remains secure and up-to-date.

4. Cost savings and optimized resources

SaaS spend management helps you identify cost-saving opportunities by tracking subscription usage. By cutting redundant apps and optimizing license use, you can significantly reduce expenses. For Managed Service Providers (MSPs), the impact is even broader. Managing unused apps saves clients money, improves satisfaction, and opens opportunities for new revenue—all vital with today’s tight IT budgets.

5. Streamlined administration and SaaS user management

When done manually, SaaS user management is tedious and error-prone. According to research, 21.7% of US companies take up to a month to deprovision employees, and 14% take as long as six months. Automating these onboarding and offboarding processes using a SaaS management platform minimizes the risk of data exposure and increases your IT team’s efficiency.

How to get started with SaaS management

Implementing a SaaS management platform is equal parts assessing your needs and finding the right SaaS management platform vendor.

Here are five best practices to get you started.

1. Start with a needs assessment

Before diving into implementation, it’s essential to understand the challenges and gaps within your organization. A needs assessment sets the stage for a successful SaaS management strategy.

Consider the following questions:

• Can you detect shadow IT in your environment, or are there gaps in your visibility?
• How much are you spending on SaaS apps today, and where can you optimize?
• Which SaaS apps get the most and least use, and why?
• Do you have compliance requirements that specific apps need to meet?
• How are users logging into SaaS services (e.g., SSO or individual credentials)?

This step helps pinpoint what your organization needs to prioritize, whether that’s reducing costs, tightening security, or ensuring compliance. 

2. Research and evaluate solutions

Once you’ve identified your needs, research potential SaaS management platform vendors and narrow down options based on your requirements. Use free trials or demos to see how well each tool performs SaaS discovery in your environment.

💡Pro tip: Test the platform in an environment with at least 30 workstations and active user groups to get realistic insights.

Remember, it’s not just about features—evaluate ease of use, integration, and cost-effectiveness. Make sure the platform handles user lifecycle management, compliance, and shadow IT visibility efficiently.

3. Plan the implementation

With your platform chosen, plan for a smooth rollout. Decide on deployment methods and set up key integrations. For reference, Auvik SaaS Management takes about two minutes to integrate with Azure AD and about six minutes to deploy using an endpoint agent. A well-thought-out plan ensures you start gathering insights quickly.

4. Train users

Once your platform is active and insights start coming in, train users to address security risks. For example, if the tool flags shared credentials or unauthorized apps, educate your team on why these practices are insecure and offer better alternatives. Proper training boosts security and ensures employees understand the platform’s value.

5. Assess, act, and repeat

SaaS management is ongoing. Regularly review reports and alerts to spot and address issues. If you find shadow IT or risky behavior, ask why—it may highlight gaps in the tools provided to users. Addressing these needs can help reduce shadow IT and improve efficiency. 

SaaS management FAQs 

What should I look for in SaaS management platform vendors?

When evaluating a SaaS management platform, prioritize features that deliver visibility, security, and efficiency:

• SaaS discovery: Ensure the platform can automatically detect all apps in use, including shadow IT, for full visibility.
• SaaS user management: Look for tools that streamline user onboarding, offboarding, and access permissions to reduce errors and security risks.
• License optimization: The ability to track app usage and eliminate unused subscriptions helps control costs.
• Security monitoring: Features like alerts for shared credentials, unauthorized access, and vendor security incidents keep your data safe.
• Integration capabilities: Seamless integration with identity providers like Azure AD and other IT tools your organization uses ensures a smoother deployment.
• Centralized dashboard: A single interface that consolidates all app data makes managing and monitoring your SaaS environment easier.
• Custom reporting: Tailored reports and alerts provide insights that help optimize app usage and maintain compliance.

Choosing a platform with these features, like Auvik SaaS Management, will help your IT team manage your ecosystem effectively, saving time, reducing costs, and enhancing security.

How do SaaS management platforms help with software audits?

SaaS management platforms simplify the auditing process by maintaining a detailed inventory of all SaaS applications and usage data. This ensures that your organization can quickly provide accurate information about software licenses, compliance, and security practices during an audit.

What’s the difference between SaaS management and IT asset management (ITAM)?

While ITAM focuses on managing all technology assets, including hardware and on-premise software, SaaS management specifically deals with overseeing cloud-based applications, which requires a different set of tools and strategies.

Can SaaS management tools integrate with other IT service management (ITSM) platforms?

Yes, many SaaS management platforms are designed to integrate with IT service management (ITSM) tools. For example, Auvik integrates with ServiceNow and HaloPSA. This helps streamline workflows, such as automating service requests or incorporating SaaS data into broader IT management processes.

Take back control with SaaS management 

Ready to simplify your SaaS environment, cut down on unnecessary costs, and secure your data?

With Auvik SaaS Management, you’ll gain full visibility and control over your organization’s apps, making it easier to optimize licenses, monitor security, and streamline user management.

Sign up for a free trial today and experience how Auvik can transform your SaaS management strategy.