Companies are hitting it. A great defining point about how to assemble and manage a software tech stack. On the one hand, the tide of IT changes related to the pandemic is starting to calm down, but on the other hand, many are facing an economic downturn that could have an even greater impact.
The resilience and adaptability of any company that has survived the pandemic is admirable. But the hard truth is that most of these companies will have a “payback” period ahead as the decisions and actions they have taken over the last 18 to 24 months will pay off.
That said, few parts of your tech stack will be as vulnerable as software license renewals.
The SaaS Tsunami
Digital transformation came quickly for most businesses – whether they were ready for it or not. The shift to remote work and the need to rapidly scale and onboard solutions converge in one logical direction – cloud-based software. Low cost of entry, minimal infrastructure requirements, and rapid implementation make moving to the SaaS tech stack an obvious choice.
One of the best ways IT managers can streamline the SaaS renewal process is to remove it from their plate entirely.
In the year By 2021, Deloitte estimates that 94% of organizations will be using some form of cloud-based SaaS product. According to our research, the average enterprise organization has doubled its SaaS spending since 2018 and is now spending $35,000 on nearly 300 different tools.
In the heat of the moment, many companies are focused on the immediate challenges that SaaS can solve without really understanding how to acquire, purchase and manage the long-term technology stack of this digital transformation.
Reducing pile fatigue in the face of failure
The SaaS procurement boom of 2020 and 2021 has led to tech-stack exhaustion, and IT departments are feeling the pressure of managing complex and disparate tools and justifying ROI as software costs continue to rise.
SaaS companies have used aggressive pricing to gain a foothold in organizations that rely on and benefit from them during the pandemic. Many are helping businesses achieve their goals, improve productivity and realize ROI while creating incredibly successful economic potential. In fact, a large part of these SaaS products have become ubiquitous. Sticky, “can’t live without” features (think Airtable, Monday.com, and Slack) require those logins to take advantage of refresh times.