As renewal season approaches, many businesses face rising software bills and unused subscriptions. Effective saas cost management isn’t just about reducing expenses—it’s about understanding what you have, what you’re using, and what can be cut before contracts auto-renew. A strategic approach to managing your software stack can result in meaningful savings and stronger IT governance.
Why SaaS Costs Get Out of Control
Most businesses accumulate SaaS tools over time. Departments sign up for project management software, scheduling apps, analytics platforms, and more—often without IT involvement. The result? Duplicate tools, underutilized licenses, and surprise renewals. Without a clear audit, these expenses add up fast and create unnecessary cybersecurity risks.
Step 1: Audit All Active Subscriptions
Start by collecting data on every active SaaS product your business pays for. Use expense reports, corporate card charges, procurement logs, and cloud access logs. Tools like Blissfully and Zylo can help automate this process by discovering what software your employees are using—even tools purchased outside the IT department.
Step 2: Identify Redundancies and Waste
Review your findings for overlap. Are you paying for two project management platforms? Three survey tools? Eliminate what you don’t need and consolidate where possible. Licenses that haven’t been used in 90 days are strong candidates for cancellation or reduction.
Step 3: Coordinate with Department Leaders
Don’t make decisions in isolation. Meet with each department to understand how they use the tools in question. Some software may be business-critical for one team but redundant for another. You’ll also uncover shadow IT—apps purchased by individual employees that pose risk and waste.
Step 4: Create a Renewal Calendar
One of the biggest problems in saas cost management is auto-renewals that slip by unnoticed. Build a shared calendar that includes every contract’s renewal date, notice period, and point of contact. Set reminders 30–60 days in advance to allow time for renegotiation or cancellation.
Step 5: Establish Procurement Governance
Develop and enforce a policy requiring all new SaaS tools to go through IT and finance. This ensures every subscription is vetted for security, compatibility, and cost-effectiveness. Require department heads to justify renewals annually based on usage and value.
Step 6: Monitor and Optimize Continuously
SaaS audits should not be once-a-year events. Perform quarterly reviews to identify creep, flag unused licenses, and adjust plans as your business changes. Assign an owner—IT or finance—to oversee the entire stack.
Helpful Resource
For additional strategies on SaaS cost control, this breakdown from CloudZero is detailed and actionable:
SaaS Cost Management: Best Practices
Where Cost+ Can Help
Through Cloud+, Cost+ helps companies uncover SaaS waste, streamline renewals, and put policy around procurement. We help teams build dashboards, track licenses, and stop spending on tools no one uses.
Bottom Line
Smart saas cost management protects your budget, reduces security exposure, and keeps your software environment aligned with real business needs. A simple audit today can prevent thousands in unnecessary charges tomorrow.
By Dan Krieger
Managing Member