SaaS License Management

  • Release version: Zurich
  • Updated December 4, 2025
  • 2 minutes to read
  • Summarize
    Summarized using AI
    This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete.

    Summary of SaaS License Management

    SaaS License Management helps organizations track and control cloud-based application subscriptions as part of Software Asset Management (SAM). It enhances ownership, visibility, agility, and accountability, enabling better cost control and efficient resource use. The focus is on managing Direct SaaS applications, which are fully cloud-hosted and accessed via web or apps without local installation.

    Show full answer Show less

    SaaS Subscription Models

    • Hybrid SaaS: Combines on-premise installations with cloud subscriptions, useful for offline access and compliance needs (e.g., Microsoft 365).
    • Direct SaaS: Entirely cloud-based applications accessed online (e.g., Miro), suitable for ease of deployment and remote teams. This is the primary focus of SaaS License Management.

    Managing Direct SaaS with SaaS License Management

    Management approaches vary by organizational needs, integration depth, API availability, and Single Sign-On (SSO) usage:

    • Direct Integration: Provides automated license reclamation, detailed usage insights, and reduces manual efforts for supported vendors.
    • SaaS License Connections: Enables low-code integration with any SaaS app having a public API, offering flexibility and customizable workflows via ServiceNow Integration Hub.
    • SSO Integration: Connects via SSO providers (e.g., Okta, Microsoft Entra ID) to identify overlapping software, rationalize applications, reduce SaaS sprawl, and improve cost control.

    Key Capabilities and Benefits

    • Track and optimize SaaS and SSO subscription usage and costs through dashboards and reports.
    • Automate reclamation of unused licenses to reduce software expenses.
    • Manage multiple integration profiles and configurations for different SaaS applications using child aliases.
    • Associate users with subscription records to maintain accurate license assignment.
    • Disconnect or delete integration profiles when applications are no longer in use.
    • Define subscription exclusions to optimize license cost calculations.

    Getting Started and Setup

    • Request the Software Asset Management - SaaS License Management plugin to enable integrations.
    • Set up SaaS License Management for your organization, especially large companies, to consolidate SaaS usage data in ServiceNow.
    • Use the SaaS playbook for guided integration steps from initiation through completion.
    • Create integration profiles and connect to SaaS applications and SSO providers to monitor subscription usage and optimize licensing.

    This solution empowers ServiceNow customers to streamline SaaS license tracking, improve compliance, reduce costs, and gain clear visibility into cloud application usage across their enterprise.

    SaaS License Management helps organizations track and control cloud-based applications and service subscriptions as part of Software Asset Management (SAM). It promotes ownership, visibility, agility, and accountability, enabling better cost control and efficient use of resources.

    SaaS subscription models

    SaaS applications and services are typically subscribed to on a per-user basis. They generally fall into two categories:
    • Hybrid SaaS
      Hybrid SaaS combines on-premise installations with cloud-based subscriptions. It’s commonly used by organizations that require offline access to certain applications while also using cloud features for collaboration. This model is also suitable for businesses with compliance requirements that mandate local installations. For example, a Microsoft 365 subscription enables you to access cloud services and install applications like Microsoft Excel on their devices. SAM supports the following Hybrid SaaS integrations:
    • Direct SaaS
      Direct SaaS refers to applications where all data and functionality are hosted in the cloud and accessed through the internet. You typically log in via a web browser or a dedicated app without installing software locally. For example, a Miro subscriber accesses the application entirely online. This model is common for organizations that prioritize ease of deployment and minimal maintenance, and for teams that work remotely or across multiple locations.
      Important:
      This topic focuses on the Direct SaaS category. It explains how to get started, identifies areas where Direct SaaS can be applied, and outlines ways to use available solutions and workflows effectively.

    Managing Direct SaaS with the SaaS License Management application

    Managing Direct SaaS applications can vary based on organizational needs. The best approach depends on factors such as the level of integration required, available APIs, and whether Single Sign-On (SSO) is in place.
    • Use Direct Integration when you need deep usage insights and automated license management for supported vendors.
    • Use SaaS License Connections when you want flexibility to connect any SaaS app with a public API and prefer a low-code setup.
    • Use SSO Integration when you need visibility into apps connected through an SSO provider and want to address SaaS sprawl.

    For more information about installing SaaS License Management, see Request SaaS License Management.

    Flowchart to guide through SaaS license management
    Table 1. Approaches to manage your SaaS applications
    Option Key features Benefits
    Direct Integration
    • Base system or default direct integrations
    • Automated license reclamation
    • Provides detailed usage insights
    • Automates license management
    • Reduces manual effort
    SaaS License Connections
    • Connect to any SaaS application with a public API
    • Low-code framework using ServiceNow® via Integration Hub and Workflow Studio
    • Flexible for any SaaS application
    • Customizable workflows
    SSO Integration
    • Connect via SSO providers such as Okta and Microsoft Entra ID.
    • Download the list of applications or users
    • Identify overlapping software and rationalize applications
    • Helps tackle SaaS sprawl
    • Improves cost control
    • Simplifies user access management