Introduction

Unlocking savings: The hidden potential of deactivating unused SaaS accounts

In today's digital landscape, Software as a Service (SaaS) applications have become a fundamental part of modern business operations. These cloud-based tools offer numerous benefits, including flexibility, scalability, and cost-efficiency. However, as organizations grow, they often accumulate numerous SaaS subscriptions, many of which can go unused or underutilized. In this blog post, we will explore the savings potential that lies within deactivating unused SaaS accounts.

The SaaS explosion

The SaaS market has experienced exponential growth over the past decade. According to Statista, the global SaaS market was estimated to be worth $105.9 billion in 2020, with projections of continued growth. While the adoption of SaaS has revolutionized business operations, it has also led to the proliferation of unused or redundant subscriptions.

Understanding the savings potential

Identifying unused subscriptions

The first step in unlocking savings is identifying which SaaS accounts are truly unused. This can be a complex task, but with TallyUp you can quickly get a clear picture of the subscriptions that no longer serve a purpose within your organization.

Assessing the cost of unused SaaS

To demonstrate the savings potential, let's consider a hypothetical scenario. A medium-sized company with 500 employees is subscribed to various SaaS applications, spending an average of $30 per user per month. If the company identifies and deactivates 50 unused accounts, it could potentially save $1,500 per month or $18,000 annually. If you are questioning whether you could identify 50 unused accounts at your company: Studys show that 49% of software subscriptions are not being actively used!

Right-sizing subscriptions

In addition to identifying unused accounts, organizations can optimize their SaaS spend by right-sizing subscriptions. This involves adjusting the number of licenses to match the actual demand. For example, if a company regularly uses 75 out of 100 available licenses, it can save 25% of the subscription costs by downgrading to a more appropriate plan.

Reducing overlapping features

Many SaaS applications offer similar features, resulting in overlap and redundancy. By consolidating tools and choosing the most suitable ones, companies can further reduce costs. For instance, a company with multiple project management tools can save money by selecting a single, comprehensive solution.

Reducing overlapping features

  • Dropbox: Dropbox, a popular file-sharing and cloud storage service, offers Business and Enterprise plans at varying price points. By accurately assessing their needs and downgrading from Enterprise to Business, a company with 200 users could save up to $15,000 annually.
  • Slack: Slack, a team collaboration platform, offers tiered pricing based on the number of users. A company with 250 users using the Standard plan could save approximately $6,250 per year by transitioning to the Plus plan.
  • Adobe Creative Cloud: Adobe's Creative Cloud suite provides a range of applications. A company with 50 employees who only require Adobe Acrobat Pro can save around $5,000 annually by switching to a single-application subscription.

The potential savings by deactivating unused SaaS accounts are not just theoretical; they are real and substantial. By conducting regular SaaS audits with TallyUp, identifying unused subscriptions, right-sizing plans, and eliminating overlap, organizations can significantly reduce their annual software expenses.

In a business environment where cost optimization is crucial, understanding and leveraging these savings opportunities can have a positive impact on the bottom line. Therefore, it's essential for companies to embrace a proactive approach to SaaS management, ensuring that every subscription serves a purpose and contributes to the company's overall success