Software-as-a-Service (SaaS) providers, like other public cloud services, offer convenient ways to purchase products, which can lead to unmanageable subscriptions and unnecessary IT spending. In the past, software asset management (SAM) teams were responsible for ensuring proper software licenses, enabling better decision-making in purchasing agreements and preventing unauthorized software use.
SAM duties now include tracking SaaS usage, providing data for security, preparing for software renewals, and maintaining software inventories. Collaboration between SAM and FinOps teams is recommended as cloud and SaaS costs surpass on-premise software costs.
Public cloud services have revolutionized IT cost control, with IT engineering teams using cloud-based services and microservices to develop applications faster than before. However, tracking assets and managing costs remain challenges, as some services may not be the best long-term choice.
Organizations are advised to implement performance engineering techniques to optimize costs and improve application performance. FinOps practices can help control SaaS costs, avoiding unauthorized applications and usage. Effective collaboration between finance, procurement, and legal teams is crucial in managing cloud expenses and ensuring that cloud budgets align with business goals.