SaaS License Management

  • Release version: Australia
  • Updated March 12, 2026
  • 2 minutes to read
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    Summary of SaaS License Management

    SaaS License Management enables organizations to effectively track and control cloud-based applications and service subscriptions within Software Asset Management (SAM). It enhances ownership, visibility, agility, and accountability, leading to better cost control and efficient resource usage.

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    The solution distinguishes between two SaaS subscription models:

    • Hybrid SaaS: Combines on-premise installations with cloud subscriptions, supporting offline access and compliance needs (e.g., Microsoft 365, Adobe Cloud).
    • Direct SaaS: Fully cloud-hosted applications accessed via web or app without local installation (e.g., Miro). This summary focuses on Direct SaaS management.

    Managing Direct SaaS Applications

    Management approaches depend on organizational needs, integration requirements, API availability, and Single Sign-On (SSO) setup. The key methods include:

    • Direct Integration: Provides automated license reclamation, detailed usage insights, and reduces manual effort through base or default integrations with supported vendors.
    • SaaS License Connections: Offers a low-code framework for connecting any SaaS application with a public API, enabling flexible and customizable workflows via ServiceNow Integration Hub and Workflow Studio.
    • SSO Integration: Connects via SSO providers (e.g., Okta, Microsoft Entra ID) to identify overlapping software, manage SaaS sprawl, improve cost control, and simplify user access.

    Practical Setup and Usage

    • Request the Software Asset Management - SaaS License Management plugin to create and manage integrations for SaaS and SSO applications, enabling license usage tracking and reclamation.
    • For large companies, configure the system to consolidate all SaaS usage data within ServiceNow for comprehensive visibility.
    • Use the SaaS Overview dashboard to analyze subscription usage, costs, and compliance, optimizing software expenditures.
    • Create integration profiles to gather software usage data and optimize stale license management.
    • Integrate with SSO providers to view usage across all connected applications.
    • Follow the SaaS playbook for step-by-step guidance through the integration process.

    Managing Subscriptions and Integrations

    • View all SaaS and SSO subscriptions in one place for efficient monitoring.
    • Define and apply software reclamation rules to cancel inactive user subscriptions, helping reduce costs.
    • Create child aliases to manage multiple integration profiles for applications like Cisco Webex, Confluence Cloud, and Jira, each with unique connections and configurations.
    • Associate users with subscription records to maintain accurate license assignment.
    • Disconnect SSO applications or delete integration profiles when they are no longer in use to maintain system hygiene.
    • Manage subscription identifiers and define subscription exclusions to fine-tune licensing cost calculations.

    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