Solving for the Challenges SaaS Creates for IT Procurement

  • Category: Industry trends & insights
  • Published: 08 July 2020
  • Author: Darish Rajanayagam

Today, we’re witnessing an exponential increase in innovation, ISV numbers and software-as-a-service (SaaS) products. According to McAfee, the average enterprise uses 1,427 distinct cloud services.

 

Given its ease of access, the SaaS model of software delivery has become commonly used for many types of business applications, including customer relationship management (CRM), billing and payroll processing, and enterprise resource planning (ERP).

 

Calculating the related costs

 

Since SaaS is based on cloud computing, organizations no longer need to install and run applications on their own systems. In most cases, this reduces—and often eliminates—the associated costs of hardware purchases and maintenance.

 

SaaS also provides enterprises the flexibility and scalability that come with using cloud services. The pay-as-you-go model allows enterprises to shift costs from a traditional capital expense to an ongoing operating expense, and to subscribe or cancel as needed to manage those recurring costs.

 

But does your IT procurement team sing the same praise?

 

Navigating the SaaS terrain

 

The adoption of cloud computing has created many challenges for IT procurement as organizations transition from traditional business operations to modern, cloud-enabled processes. For example, do you know how many SaaS products and subscriptions are actually being purchased within your company?

 

The increase in business users acquiring SaaS applications on their own without oversight or knowledge of your IT team can lead to not only wasteful expenditures, but also potential security pitfalls.

 

McAfee reports that of the 20,000 known cloud services in use today, only 8.1%—or 1 in 10 providers—follow and meet the strict data security and privacy requirements of enterprises, including industry best practices of encrypting data at rest and other enterprise-grade security controls.

 

Consumerization of IT, shadow IT and continually evolving compliance regulations are creating a potential perfect storm of security risks. But through collaboration between users and enterprise IT, you can regain and maintain control.

 

Finding the answers

 

There are practical steps you can take to minimize the security and compliance risks in cloud-based IT procurement processes.

 

To learn more, read the white paper, How SaaS Consumption is Creating Challenges for IT Procurement, and discover how you can find and implement the right solutions. If you have any questions, or would like to find out more about how CloudBlue can help, contact us at together@cloudblue.com.

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Darish Rajanayagam
CISSP – Vice President, Technical Operations, Ingram Micro Cloud
Darish leads software development, IT, platform management & operations, as well as security & compliance for Ingram Micro Cloud and CloudBlue. His experience spans cloud, eCommerce, enterprise application, networks and datacenters. He’s skilled in bringing concepts to market, while improving organizational efficiencies through process optimizations and leveraging the latest tools and technologies.
Submitted by debajit on Tue, 07/07/2020 - 21:41

Today, we’re witnessing an exponential increase in innovation, ISV numbers and software-as-a-service (SaaS) products. According to McAfee, the average enterprise uses 1,427 distinct cloud services.

 

Given its ease of access, the SaaS model of software delivery has become commonly used for many types of business applications, including customer relationship management (CRM), billing and payroll processing, and enterprise resource planning (ERP).

 

Calculating the related costs

 

Since SaaS is based on cloud computing, organizations no longer need to install and run applications on their own systems. In most cases, this reduces—and often eliminates—the associated costs of hardware purchases and maintenance.

 

SaaS also provides enterprises the flexibility and scalability that come with using cloud services. The pay-as-you-go model allows enterprises to shift costs from a traditional capital expense to an ongoing operating expense, and to subscribe or cancel as needed to manage those recurring costs.

 

But does your IT procurement team sing the same praise?

 

Navigating the SaaS terrain

 

The adoption of cloud computing has created many challenges for IT procurement as organizations transition from traditional business operations to modern, cloud-enabled processes. For example, do you know how many SaaS products and subscriptions are actually being purchased within your company?

 

The increase in business users acquiring SaaS applications on their own without oversight or knowledge of your IT team can lead to not only wasteful expenditures, but also potential security pitfalls.

 

McAfee reports that of the 20,000 known cloud services in use today, only 8.1%—or 1 in 10 providers—follow and meet the strict data security and privacy requirements of enterprises, including industry best practices of encrypting data at rest and other enterprise-grade security controls.

 

Consumerization of IT, shadow IT and continually evolving compliance regulations are creating a potential perfect storm of security risks. But through collaboration between users and enterprise IT, you can regain and maintain control.

 

Finding the answers

 

There are practical steps you can take to minimize the security and compliance risks in cloud-based IT procurement processes.

 

To learn more, read the white paper, How SaaS Consumption is Creating Challenges for IT Procurement, and discover how you can find and implement the right solutions. If you have any questions, or would like to find out more about how CloudBlue can help, contact us at together@cloudblue.com.

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