How IT Teams Can Benefit from SaaS Usage Insights

As businesses rely more on Software-as-a-Service (SaaS) applications for critical operations, managing these tools effectively has become a core responsibility of IT teams. From collaboration platforms to data analytics tools, SaaS apps power everything from day-to-day tasks to long-term strategic goals.

However, without a clear understanding of how these applications are being used, IT teams may struggle to optimize their SaaS ecosystem, control costs, and mitigate security risks. This is where SaaS usage insights come into play. These insights provide a window into how, when, and by whom SaaS tools are being used, offering actionable data to improve efficiency, security, and return on investment.

In this blog, we’ll explore the transformative power of SaaS usage insights and how IT teams can leverage them to optimize their operations, secure their environments, and drive business innovation.

What Are SaaS Usage Insights?

SaaS usage insights refer to data and analytics about how employees interact with SaaS applications within an organization. These insights can include:

• Usage Metrics: Information on how often and for how long apps are used by employees.

• License Utilization: Data showing how many licenses are active versus unused.

• Access Patterns: Details on when and where users are accessing apps.

• Security Trends: Information about potential security risks, such as unauthorized access or non-compliance with access controls.

By gathering and analyzing these insights, IT teams can better understand the role SaaS applications play in the organization and make data-driven decisions to optimize their use.

The Growing Complexity of SaaS Environments

The rise of SaaS has revolutionized business operations, but it has also created challenges for IT teams. Modern enterprises often use hundreds of SaaS applications across different departments, leading to what’s known as SaaS sprawl.

SaaS sprawl makes it difficult to:

1. Keep track of all applications in use.

2. Identify redundant or unused software.

3. Ensure compliance with security and regulatory standards.

Additionally, shadow IT—when employees adopt SaaS tools without IT approval—further complicates efforts to maintain visibility and control over the SaaS ecosystem. Without access to SaaS usage insights, IT teams risk overspending on unused tools, losing visibility into data flows, and exposing the organization to potential security breaches.

How SaaS Usage Insights Benefit IT Teams

SaaS usage insights offer IT teams the clarity they need to take control of their SaaS environments. Here’s how these insights translate into tangible benefits:

1. Optimizing Costs and Reducing Waste

One of the most significant challenges in managing SaaS tools is controlling costs. Many organizations overpay for licenses that go unused or underutilized. SaaS usage insights provide visibility into:

• Which tools are being used regularly versus those that aren’t.

• Departments or users with redundant subscriptions.

• Opportunities to consolidate similar tools into a single solution.

For example, an IT team might discover that two departments are using different project management tools with similar features. Consolidating these tools into one application can reduce subscription costs while improving collaboration across teams.

Additionally, usage insights can highlight unnecessary premium features that aren’t being leveraged, allowing IT teams to downgrade plans or renegotiate contracts with vendors.

2. Strengthening Security and Compliance

SaaS applications often serve as entry points for cyberattacks, especially if access controls are not properly managed. Usage insights help IT teams:

• Monitor login patterns to detect suspicious activity, such as logins from unusual locations or at odd hours.

• Identify applications with poor security practices, such as a lack of multi-factor authentication (MFA).

• Ensure compliance with data protection regulations by tracking where data is stored and who has access to it.

For example, an IT team may notice that a recently onboarded SaaS tool does not meet the company’s compliance requirements for data encryption. Armed with this insight, they can take corrective action, whether it’s implementing additional safeguards or replacing the tool altogether.

3. Enhancing User Productivity

SaaS usage insights can reveal whether employees are fully utilizing the tools at their disposal. If certain features or functionalities remain underused, IT teams can:

• Provide targeted training to help employees get the most value from the application.

• Assess whether the tool is a good fit for the organization’s needs or if it should be replaced with a more intuitive solution.

For instance, if a collaboration tool shows low engagement, IT might organize a training session to demonstrate features that employees may not know about, such as automation or integration capabilities.

4. Managing SaaS Sprawl and Shadow IT

SaaS usage insights help IT teams identify applications that employees have adopted without approval. These insights allow IT to:

• Detect shadow IT and either bring these tools under official management or replace them with approved alternatives.

• Prevent data silos by ensuring all tools are integrated into the organization’s existing tech stack.

• Standardize software usage across departments to improve efficiency and collaboration.

By eliminating shadow IT, IT teams can regain visibility into data flows and reduce the risk of non-compliance or security vulnerabilities.

5. Improving Vendor Relationships and Negotiations

Understanding how SaaS applications are used enables IT teams to negotiate better contracts with vendors. SaaS usage insights provide concrete data on:

• Which features are most valuable to the organization.

• How much capacity is actually needed.

• Where there are opportunities to reduce costs or secure discounts.

By presenting this data to vendors during renewal discussions, IT teams can advocate for custom pricing plans that align with the organization’s needs.

Tools for Gathering SaaS Usage Insights

To unlock the full potential of SaaS usage insights, IT teams need the right tools to collect, analyze, and act on this data. Popular SaaS management platforms include:

• BetterCloud: Focuses on SaaS governance and security, offering insights into user activity and compliance risks.

• Torii: Helps identify shadow IT, track usage trends, and optimize SaaS spending.

• Lurel: Provides a centralized dashboard for monitoring SaaS applications, tracking license utilization, and ensuring compliance.

• Microsoft Defender for Cloud Apps: Offers real-time monitoring and insights into SaaS usage and security vulnerabilities.

These tools automate the collection of usage data, making it easier for IT teams to manage their SaaS environments proactively.

Best Practices for Leveraging SaaS Usage Insights

To maximize the value of SaaS usage insights, IT teams should:

1. Centralize SaaS Management: Use a single platform to monitor all SaaS tools and consolidate usage data in one place.

2. Establish Usage Benchmarks: Define metrics for what constitutes effective usage and track these benchmarks over time.

3. Collaborate with Departments: Work closely with department leaders to understand their software needs and align them with organizational goals.

4. Audit Usage Regularly: Conduct periodic reviews to ensure SaaS tools continue to meet the organization’s needs.

By integrating these practices into their workflows, IT teams can use SaaS usage insights to drive continuous improvement across their SaaS environments.

Conclusion: Empowering IT Teams with SaaS Usage Insights

SaaS usage insights are a game-changer for IT teams tasked with managing increasingly complex SaaS ecosystems. By providing visibility into how tools are used, these insights empower IT to optimize costs, enhance security, and improve user productivity.

In an era where data-driven decision-making is key to staying competitive, leveraging SaaS usage insights can help IT teams not only manage risks but also unlock opportunities for innovation and efficiency.

Ready to harness the power of SaaS usage insights? Start by implementing a SaaS management platform and building a culture of transparency and collaboration around software usage in your organization.