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SaaS Optimization Case Study – $500K Cost Savings, Non-compliance Risk Identified

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SaaS Optimization Case Study – $500K Cost Savings, Non-compliance Risk Identified

CLIENT: US-Based MMKT

ENGAGEMENT: Silver Tree’s Software Licensing SME initiated an 8-week cost/resource optimization audit of client’s “Software as a Service” (SaaS) licensing. The primary objectives were to:

  • Identify organization’s most significant license agreements to establish opportunity for volume optimization and re-negotiation of licensing terms.
  • Create detailed plan to optimize spend on software assets.

ACTION:

  • Silver Tree identified five key software products which had contracted above organizational requirements, resulting in ~$500,000 annual overspend. Since each of the contracts were scheduled for renewal between Q4-2020 and Q1-2021, action was tabled on them until contract renewal time.
  • Silver Tree identified three high-profile SaaS products which had been over-deployed to users where they were not needed nor licensed. This represented a direct financial risk of $45,237 for licensing costs, plus the possibility for up to $150,000 punitive damages per product title.

RESULTS: 

  • $500K key software cost savings 2021, and year after year
  • $45,237 in SaaS licensing costs eliminated
  • $150,000 in punitive damages, per product title, avoided

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