Software as a service best practices

Every business decision should help move the organization closer in the direction of its goals. The decision to embrace SaaS is no different. As such, the first step in getting more out of SaaS is to fully identify and define the business needs behind the decision. These best practices are designed to assist organizations in doing just that.

Conduct a thorough assessment of the organization’s needs

Conducting a comprehensive assessment of the company and its goals helps set the foundation for making informed decisions about which SaaS solutions are best suited to promote success. To assess an organization’s needs, consider the following:

• Engage stakeholders 
  Collaborate with various departments and teams within the organization to gather insights into their specific pain points, challenges, and requirements. This cross-functional approach ensures a holistic view of the organization's needs so that when the time comes to select SaaS services, decision-makers can do so efficiently and intentionally.

• Define objectives 
  Clearly define the business objectives and goals. Ask questions such as what are the SaaS solutions intended to accomplish and how will they contribute to the organization's success. Well-defined objectives help align SaaS investments with the company’s strategic vision.
  

• Analyze current processes 
  Examine existing workflows and processes to identify areas that can benefit from automation, efficiency improvements, or enhanced collaboration. Doing so reveals where SaaS solutions may be able to make the most significant impact.
  

• Consider budgets 
  SaaS solutions are an investment, and that means they often come attached to a hefty price tag. Determine the organization's budgetary constraints and allocate resources accordingly. Defining and respecting financial boundaries allows leaders to make economic decisions when selecting SaaS solutions.

Align the SaaS solutions

With a clear understanding of the organization’s needs, the next step is to begin aligning the SaaS solutions with established goals. Do so by following these steps:

• Prioritize features 
  Evaluate potential SaaS solutions based on their feature sets and capabilities and rank them according to their relevance to the business objectives. Focus on the solutions that align most closely with the organization’s goals.
  

• Don’t neglect integration 
  Assess the compatibility of SaaS solutions with the existing tech stack. Choose solutions that can seamlessly integrate with current systems and applications, as this will enhance overall efficiency and promote unrestricted data flow.

Avoid unnecessary SaaS subscriptions 

In the ever-expanding SaaS market, sometimes it seems like every task has some kind of software as a service tool that carries its own license and subscription. Limiting the total number of SaaS subscriptions not only reduces costs but also helps maintain a lean and efficient IT environment. Here's how to avoid this common pitfall:

• Evaluate redundancy 
  Regularly review all SaaS subscriptions and assess whether multiple applications serve the same purpose. Eliminate redundant tools to reduce costs and streamline the tech stack.
  

• Find and discontinue unused licenses 
  Identify unused licenses and either cancel them or repurpose them within the organization. This practice prevents wastage of resources and helps keep SaaS expenses in check.

Evaluate the vendors on the short list

Beyond the initial shortlisting, evaluating the reputation, security measures, and compliance of SaaS vendors play major roles in helping organizations make an informed decision that aligns with their business objectives and regulatory requirements.

• Research vendor reputation 
  Investigate the reputation and track record of each vendor. Consider factors like how long they've been in business, who is on their client list, and whether they have a history of reliability and customer support.
  

• Consider the vendor’s security  
  There are few things as important to a company’s success, reputation, and continuity as data security. Assess the vendor's data-protection protocols, including encryption, access controls, and compliance with industry standards. Ensure they have a powerful and reliable cybersecurity strategy in place, because if they don't, then they shouldn't be anywhere near sensitive data.
  

• Be sure that they are fully compliant 
  Depending on the industry, compliance with specific regulations—such as the EU’s General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act of 1996 (HIPAA)—may be essential. Verify that the vendor adheres to relevant compliance requirements and can provide necessary documentation.

Assess scalability and flexibility

Further narrowing down the vendor options, the next step is to assess the scalability and flexibility of the SaaS solutions.

• Check for scalability 
  Organizations aren't static; whether growing or shrinking, they need SaaS solutions that can easily scale to accommodate shifting user numbers, dynamic data volumes, and evolving needs.
  

• Make customization a priority 
  Assess the flexibility of the SaaS solution. Can it be customized to align with unique processes and workflows? Customization options can enhance the software's adaptability, making it the right fit for nearly any organization.

Negotiate terms

After looking closely at the technical aspects of various SaaS solutions, organizations should have what they need to begin negotiating contracts. The following software as a service best practices are vital for securing favorable terms and pricing that align with budgets and expectations.

• Closely review the contract terms 
  Pay careful attention to the terms and conditions in the vendor's contract. Ensure that they align with the organization’s requirements and expectations. Seek clarification on any ambiguous clauses. 
  

• Take a close look at the pricing structure 
  Understand the vendor's pricing structure, including any hidden fees or additional costs. Negotiate for volume discounts, longer-term contracts, or favorable terms that fit the budget.
  

• Define service level agreements (SLAs) 
  Establish SLAs that define the vendor's responsibilities, uptime guarantees, and support response times. SLAs help set clear performance expectations.
  

• Include an exit strategy 
  Plan for the possibility of switching vendors or discontinuing a subscription. Ensure the contract includes provisions for data portability and a smooth transition if needed.