What Is a SaaS License
Software as a service (SaaS) applications offer a lot of exciting features for businesses. Learn about the pieces of SaaS agreements and how to ensure that your team gets the most value and functionality.
Software as a service (SaaS) applications offer a lot of exciting features for businesses. Learn about the pieces of SaaS agreements and how to ensure that your team gets the most value and functionality.
Captain America has his shield, Thor has his mighty hammer, and Iron Man has a suit of high-tech armor to get the job done when the world needs saving. But when it comes to the business world, too many teams are left ill-equipped to deal with one of the greatest, cloud-enabled villains: the ever-growing, ever-confusing, and ever-money-sucking tech stack. The worst part? As a multitude of new SaaS offerings hit the market, tech stacks grow in size and cost, wreaking havoc on your organization’s budget and efficiency. Without the proper tools, you’ll feel like you’re up against Thanos with only a rubber band to aid you, and we all know how that ends.
There’s a better way to approach SaaS management. In this blog, we show how to find your secret weapon to combat an overwhelming tech stack and optimize your SaaS license management. What’s in it for your organization?
Let’s dive in!
Businesses can use software as a service (SaaS) applications by purchasing a license. SaaS licensing models typically operate on a subscription basis. In this model, users pay a monthly or yearly fee in exchange for access to the software. Purchasing software licenses is beneficial for businesses who want to spread out their costs rather than making a single, large investment in a program. SaaS models also tend to come with ongoing support, so if something goes wrong, license holders can get help as part of their plan.
A classic SaaS license example in the business world is customer relationship management (CRM) software. Companies can use Microsoft Excel, Planhat, or one of the many, many other options on the market to track and leverage customer data without needing to develop their own system.
Within the broader category of SaaS, there are different types of licenses. What are the 5 types of software licenses? They include:
Five types of licensing models include:
The SaaS licenses you have impact your team’s productivity, satisfaction, and profitability. By optimizing your tech stack, you can cause positive change throughout the rest of your organization.
A SaaS license agreement is the contract between the publisher and the end-user that defines obligations for both parties. These documents go into more detail than the license category, and contains information such as:
In other words, the SaaS license agreement contains the fine print. When you have a lot of applications to keep track of (the average business has 130, according to Statista), it’s easy to miss the details. That’s where Lumos can help—more on that in a moment.
SaaS license management is the process of evaluating your SaaS license agreements and optimizing your tech stack. The benefits of proactive software license management include:
The key question that this process seeks to answer is, “Is this SaaS platform worth renewing?” To find the answer, you need data. Lumos allows you to easily visualize costs, usage stats, and access points to determine which applications are worthwhile, and which aren’t.
The good fight against legacy IT systems starts with organizing your SaaS licenses. The best tool for this battle is Lumos because it allows you to see all of your SaaS licenses in one place. You also get insights into key data, such as how much each of your subscriptions cost and how much your team actually uses each application. With this information, you can evaluate which SaaS licenses can stay, and which need to go. When you cut out unneeded applications, you don’t just save money, you reduce the amount of places sensitive information exists, which strengthens your cybersecurity.
Ready to simplify your tech stack and cut your SaaS spend? Getting started is as easy as booking a demo.