- Jan 29, 2020
- Olaf Diehl
How to Save $10.2 million on SaaS Costs
Forrester Consulting recently sat down with an Aspera LicenseControl for Cloud customer, a billion-dollar international pharmaceutical company, to talk about the benefits of cloud cost management and the benefits of Aspera’s SaaS optimization tool.
The Total Economic Impact™, a commissioned study conducted by Forrester Consulting on behalf of Aspera in 2019, analyzes the costs, benefits, flexibilities, and risk factors of our SaaS optimization tool. According to the study, the customer saved $10.2 million over three years, a 383% return-on-investment.
Why SaaS optimization?
SaaS solutions are rapidly dominating software budgets at most major enterprises: it’s where the money goes, and where the savings opportunities are the highest. According to the study, the organization quickly identified 5 key challenges in controlling exploding SaaS costs:
- Cumbersome management processes: The data for some 50,000 accounts was collected manually and stored in spreadsheets, making it nearly impossible to get an accurate overview.
- Lack of a timely data analysis: Without a clear overview and automatic reporting, software asset managers were unable to make timely, sometimes time-critical subscription decisions, making them slow to respond to business needs.
- Security concerns: Employees who had left the organization sometimes still had access to sensitive data and systems because their subscriptions could not be effectively managed and deactivated.
- Accuracy of data: Data was often unreliable because it was collected manually. The organization wanted to minimize human intervention to ensure the highest data quality.
- Compliance issues: With no clear overview of subscriptions, personnel changes, or automated workflows, the organization was continually at risk of violating their terms and conditions and incurring financial penalties.
Although the customer was never at risk of major financial losses because of their SaaS subscriptions, it was clear that they were facing an important and solvable problem. They needed an automated cloud cost management solution that offered SaaS optimization benefits.
Ride the cost elevator to the bottom floor
According to the Director of Software Management at the company, “Comparing manual management of licenses with LicenseControl for Cloud is like comparing a bicycle to an airplane.” With an automated SaaS optimization solution, you gain speed, efficiency, power, capacity, and perspective. And it shows. Once the organization began working with LicenseControl for Cloud, they were able to solve their most important cloud cost management challenges:
- Reduced time and costs for software management
- Gained accurate and timely reporting
- Limited their risk of security issues
- Reduced their compliance challenges
LicenseControl for Cloud delivers cost-saving results
How did this happen? Better data, instant reporting, and customized and automated workflows. Improved data quality and automated reporting dramatically increased response time to organizational changes and business demands.
The organization became more flexible because they could see for the first time what was really happening in their SaaS environment. Reliable data allowed them to make informed business decisions about subscriptions and services, breaking down the barriers between them and the buttons and levers that control their revenue engines.
LicenseControl for Cloud gives us the possibility to move licenses from one environment to another…which is really powerful…it’s incredible when you see what people are really using and what people are licensed for. Sometimes you can just downgrade user accounts. There are real commercial benefits in having this data.
-Director of Software Management
Long-term SaaS optimization savings
Not only did the organization see impressive savings on their SaaS costs, but they were also able to realize long-term organizational savings as well. The automated workflows and data gathering tools allowed them to shift employee efforts to higher-level tasks and reassign two full-time employees.
According to the study, the customer achieved $10.2 million in cost-savings over three years and saw a 383% ROI. In addition, these organizational changes resulted in an estimated $343,335 in personnel cost savings over three years, or roughly 3% of the total benefits. Organizational changes like this can reduce operating costs and allow businesses to invest more resources in the bottom line.
Cost avoidance is baked right into the LicenseControl for Cloud pie, and the long-term benefits are not only real, they taste as sweet as they sound!
Find out how this organization saved $10.2 million over three years with SaaS optimization.
LicenseControl for Cloud enabled benefits over $10.2M for this large global life sciences organization. Find out how!