With another season of budget planning now in the books to execute anew, it’s time to self-reflect on your budgeting process to find learnings for next year. For technology spend, an area of opportunity to reduce costs is to find redundant and underutilized software subscriptions. Not only does consolidation and elimination of software subscriptions cut costs, but it also simplifies the technology stack and increases the value-add of selected software in business process flows.
Here are a few examples of common software functions that may be duplicated from multiple vendors in your environment:
- End point security
- Malware scanning
- Electronic forms
- Customer relationship manager
- Accounting ERP
This happens in companies over time as the result of Shadow IT, new vendor agreements without cleanup of existing software footprints, company mergers/acquisitions, and orphaned licenses (assigned to employees no longer at the company)
If you combine this with multi-year software agreements and auto-renewals, you have the recipe for software subscription bloat. That smells like a lot of unnecessary leakage off the bottom-line financial results.
So get organized when tracking software subscriptions. A few tips:
- When an employee leaves the company – remove their name from SaaS subscription admin panels.
- Annually true-up your software licenses count for each SaaS subscription.
- Take the time to discover redundant software licenses in your environment. Create a plan to consolidate on a single standard. Use the added volume to reach better volume discounts.
- When consolidating software vendors identify strategic partners and begin to challenge them to help you make your internal processes better. It’s a win-win. They retain you as a customer and create a more marketable solution. You gain more process efficiency and provide value back to the organization for the software spend.
Consolidating software vendors and simplifying the tech-stack is a key piece of the technology roadmap I follow. I like to think of this as maintaining a healthy lifestyle to stay happy, active, and rewarded. Don’t let the weight of software subscriptions make you feel bloated. Take control of that spend.
Onward and Upward!