Most organizations use a wide range of software to run their operations. While software can help you do everything faster and more efficiently, it can also mean significant losses if the costs aren’t managed.
Many businesses lose money every month on software as a service (SaaS) subscriptions that are underused or not used at all, often because they focus on growing revenue rather than reducing costs. According to the Zylo 2026 SaaS Management Index, the average organization uses only 54% of its SaaS licenses, wasting $19.8 million a year on the rest.
To manage SaaS effectively, IT managers need to review existing subscriptions, grant and revoke employee access, monitor software usage, onboard new employees, adopt new software and protect the business from security risks. That’s a lot to ask, especially in larger organizations. SaaS subscription management tools put everything IT professionals need to do this right at their fingertips.
This article answers some of the most frequently asked questions about SaaS subscription management tools.
What Is a SaaS Subscription Management Tool?
A SaaS subscription management tool is software that organizations use to manage the SaaS subscriptions they pay for. It keeps track of each SaaS product, its billing and payment information, the users on each plan, and related cloud services and licenses.
It also analyzes your subscriptions: how much you spend, which departments should be charged back, when each subscription renews, who uses it, how it’s used and where it sits in your company. All of this is part of SaaS license management.
SaaS management is often spread across departments. For example, a sales and marketing team may use Salesforce, while the executive team oversees it and finance pays for it. A subscription management tool brings that ownership, usage and cost information together in one place.
What Are SaaS Subscriptions?
SaaS subscriptions are cloud-based software offered for a recurring fee. Instead of installing applications locally, users access the software over the internet, so they can use it from anywhere with a connection, whether at home, at work or while traveling.
Is a Subscription the Same as SaaS?
Not exactly. SaaS stands for “software as a service” and describes how software is delivered: it is hosted by its developer and accessed online, with no local installation and no need for regular manual upgrades.
A subscription describes how you pay for something: a recurring fee, usually monthly or annually. Most SaaS is sold by subscription, but subscriptions also cover other things, such as cloud infrastructure, telecom services and support contracts.
How Does Subscription Management Software Work?
Subscription management software builds a database of all the SaaS applications your organization uses and the subscriptions that go with them. It consolidates SaaS user accounts and their information, and automates payment-related processes such as invoice processing and renewals. It also tracks how each license is used and charges costs back to the departments that use each application.
For example, Asignet’s SaaS management solution automates:
- Onboarding and offboarding users in SaaS applications.
- SaaS invoice processing and subscription management.
- SaaS application integration and licensing.
- Notifications to administrators about account status and upcoming renewals.
- Detailed analytics on each subscription, showing where it’s used most, where it isn’t used at all, and which features users rely on or ignore.
What Is Dunning, and Why Does It Matter?
Dunning is the process SaaS vendors use to collect payments: sending invoices, reminding customers when payment is due, and retrying failed credit card or direct debit payments. If dunning notices go to the wrong person or get ignored, a subscription can lapse unexpectedly, interrupting access for your users. A subscription management tool helps by keeping billing contacts, payment methods and renewal dates in one place.
Why Is SaaS Subscription Management Software Important?
A subscription management system helps you organize and manage all your subscriptions and everything connected to them. Medium-sized and enterprise organizations typically have a large number of SaaS subscriptions to manage.
If you want to make sure your business isn’t overspending on unused software, and that your subscription plans match your actual usage, it may be time to consider a dedicated subscription management solution.
Asignet uses hyperautomation to give you more control over your SaaS licenses, helping you save both time and money. Contact Asignet to learn how we can help your organization manage SaaS subscriptions more efficiently.
