PALO ALTO, Calif.–(BUSINESS WIRE)–Productiv, the market leader in software-as-a-service management, today announced the results of a Forrester Consulting Total Economic Impact™ (TEI) commissioned study1, which found a composite organization of 2,000 employees with 240 SaaS applications received $1.93 million in benefits over a three-year period using the Productiv SaaS Intelligence™ platform. The study found that 67% of the total benefits ($1.30 million) resulted from cost optimization from application consolidation. The study also revealed that by using Productiv’s solutions, procurement and IT teams can align on a common, unified view of SaaS applications, vendors, contracts, licensing, pricing and app engagement data at the functional level – enabling them to make better decisions about portfolio rationalization .
“In today’s climate, there is significantly increased pressure on procurement, finance and IT teams to work together to optimize app consumption, eliminate waste and redundancies, and manage renewals,” said Jody Shapiro, CEO and co-founder of Productiv. “What we believe the TEI study strongly confirms is that it is not as simple as “what licenses have I bought that people aren’t logging in” – the real ROI is in the portfolio consolidation of “what apps do I need, based on who uses them and how.”
Total Economic Impact™ of the Productive SaaS Intelligence Platform the study found that teams face increasing challenges when making decisions about SaaS investments, in part due to unreliable data and a lack of visibility into application usage and costs. In addition to cost optimization from application consolidation, the composite organization in the study realized contract negotiation and renewal savings (19% of total benefits for $360,000 in savings) through visibility into when application renewal was due and access to pricing benchmarks and additional data that allowed them to have a better negotiating position with suppliers. Financial analysis also found significant safety-related cost and risk savings as well as time savings. By removing unapproved or high-risk shadow IT applications from the environment, the combined organization avoided $175,000 in potential costs from security breaches and realized an additional $50,000 in SaaS security management and time savings from automated shadow app identification. Unquantified benefits included increased cross-functional collaboration, increased application adoption rates and improved employee engagement, and higher employee confidence from access to reliable data for data-driven decision-making.
“This is crazy, but [before Productiv], we had seven learning management systems. We are now down to two and saved $358,000. That result generated by Productiv paid for Productiv,” said one of the study’s interviewees, a senior manager of technology program management in communications technology.
Another study participant, a financial services procurement executive, reported that “Because of Productiv’s benchmark, you can see how you’re trending compared to other companies—whether you’re paying more or paying less. It’s very helpful when you’re going through negotiations.”
The Productiv SaaS Intelligence™ platform is the only source of trusted data that naturally aligns IT and business teams to optimize costs, manage renewals and reduce shadow IT risk. At the heart of Productiv’s platform is SaaS Intelligence™, a unique employee-centric, data-driven approach that combines billions of data points on employee app usage with vendor contracts and organizational data to provide the most comprehensive view of an enterprise’s SaaS applications. In October, Productiv launched significant enhancements to its platform to provide finance, procurement, line and IT teams with the deepest insights for SaaS decision-making and intelligent cost optimization, including improved price benchmarks, a spend dashboard widget and data-driven contract renewal intelligence.
To help companies transform their cost optimization initiatives, Productiv’s SaaS Intelligence™ Cost Optimization Framework provides a data-driven approach with unprecedented granularity to help teams effectively reduce SaaS waste through insights into cost visibility, cost rationalization and renewal management. Learn more about how you can reduce SaaS waste by up to 33% with the framework.
Productiv is the only SaaS Intelligence™ platform for the modern enterprise. More than a SaaS management solution, Productiv equips IT, finance, procurement and business leaders with trusted data to proactively manage and drive operational efficiency while increasing employee engagement across SaaS applications. This employee-centric, data-driven approach combines billions of employee app usage data points with vendor contracts and organizational data, allowing teams to easily come together to optimize spend, manage renewals, and rationalize SaaS portfolios with automated workflows. Founded in 2018 and backed by Accel, IVP and Norwest Venture Partners, Productiv is on a mission to align IT and business leaders to make the most of their SaaS portfolio at scale. To learn more about Productiv, click here.
1 Forrester Consulting created a commissioned study on behalf of Productiv in September 2022 based on decision-maker interviews with Productiv customers and a financial analysis of a composite organization aggregated from the interviewees’ experiences and results.