How to Navigate SaaS Spend Management

Is your SaaS budget paying off, or are you footing the bill for tools your team barely touches?

SaaS adoption has grown so quickly that it’s easy for costs to creep up and for real value to slip through the cracks. But there’s good news: every company has a unique “culture” when it comes to managing these tools, and by understanding yours, you can chart a clearer path forward.

This guide will help you uncover what’s really going on behind the scenes. It is divided into three parts: 

1. Identifying your SaaS spend culture 
2. Building influence
3. Tactical steps to improve

By the end of this guide, you should understand how your organization thinks about spending in relation to cloud apps, how to talk to key stakeholders and decision makers, and a tactical plan for moving your SaaS spend to a healthier place.

Quick Pause: If you’re feeling overwhelmed at the thought of SaaS Spend, your best bet is to start with full app discovery. That way, you’ll start by figuring out which apps you actually have in your organization. You can read our full guide or grab a 14-day free trial of Torii’s App Discovery Engine! 

Part 1: What is Your SaaS Spend Culture?

Every company has different tendencies when it comes to spend management. We’ve grouped them into four “regions.” 

• Economical east
• Wild west
• Security south
• True north

Why does your region matter? As with any journey, to get to your destination, you start by figuring out where you are right now. If you understand the cultural tendencies of your company, you’ll better navigate discussions on spend management and find success with your projects. 

What’s the point?  This guide is for anyone who struggles to make progress with spend management in their organization. That might mean they need to reign in spending, but it can also be that they need to become more strategic and apply an app rationalization framework that allows them to justify spend for one tool versus another.

The Economical East

Imagine a place where every penny counts. Decisions are based on cost-cutting, and tools are measured by their impact on the bottom line. There’s little room for fancy features or extra frills; it’s all about the cheapest route.

• What It Looks Like: Your company haggles for discounts, sticks to free or basic plans, and never misses a chance to lock in a long-term deal.
• Where You See It: Common in industries with thin profit margins, like creative agencies or retail shops. Also found in companies with strong personalities at the CFO seat.
• Strengths: Lean budgets, less waste, and skilled negotiators who know how to stretch a dollar.
• Weaknesses: Lower-quality tools slow teams down. Constantly swapping out apps can feel like a never-ending chore, affecting employee morale.

The Wild West

Now picture a landscape with no fences. Anyone can grab any tool they fancy. This culture thrives on speed, curiosity, and the hope that something new will give you an edge.

• What It Looks Like: No single department controls the app landscape. People try out new tools without waiting for a green light.
• Where You See It: Common in fast-growing startups chasing rapid innovation, tech-focused companies after a merger, and marketing firms experimenting with the latest and greatest.
• Strengths: Freedom to explore, quick innovation, and happy employees who feel trusted to choose their own tools.
• Weaknesses: Redundant apps pile up, costs sneak out of control, and security risks lurk behind every unmonitored login.

The Secure South

Picture a place where safety comes first. Every new tool faces a careful review, and no one makes a move without security’s green light. Your company values stability over speed, ensuring that the apps you use won’t cause any nasty surprises down the line.

• What It Looks Like: Centralized decisions, strict vetting, and no shortcuts when it comes to security.
• Where You See It: Common in heavily regulated industries—think finance, healthcare, or government. Also found in companies that have endured data breaches and want to make sure it never happens again.
• Strengths: Strong security backbone and lower risk of costly compliance fines.
• Weaknesses: Heavy focus on security can slow innovation, limit tool selection, and turn IT into the department of “no.”

True North (The Goal)

Imagine the sweet spot where cost, effectiveness, and security all work in harmony. This is True North—where IT isn’t just a gatekeeper, but a helpful guide. Decisions feel balanced, and people use the right tools with fewer headaches.

• What It Looks Like: A clear process for choosing apps, grounded in business goals, not just sticker prices or strict rules.
• Where You See It: Companies that step back and weigh the full picture, from budget to productivity to safety.
• Strengths: Smart, long-term thinking leads to reduced waste, well-chosen apps, and happier teams who feel trusted and supported.
• Weaknesses: Getting here isn’t easy. Cultural shifts and teamwork across departments are a must, and that can take time and effort.

Part Two: Building Influence

You can’t reshape your SaaS culture on your own. IT is often the first team to spot the problem because they have unique insight into the balance of technology and costs. But, without the ear of leadership, the insight is wasted. If you want to see change, you must find ways to bring alignment between different teams.

Alignment is tricky; it changes based on the granularity of the scope. For example, from a macro perspective, everyone wants your company to succeed and they want that success to come in the form of higher profits.

Now, when we zoom in a bit, things get increasingly murky. How should those profits come about? Obviously, higher revenue, but how much from cost savings? Where should those cost savings come from? If from apps, which apps? Unnecessary apps? But which ones are unnecessary—how do we determine? 

You see the problem—the lower we go, the more opportunity for division arises. 

This is why building influence is a smart move. Everyone has a bias in their thinking about spending on apps—your job is to ensure that a reasonable framework is established to protect productivity without letting bloat run amuck. 

Who to Engage and How:

When you understand the region of your company, you also know which voices matter the most. Use that insight to pick the teams and leaders with whom you should speak. 

CFOs/Finance Teams:
To win support from finance, you need to speak their language. They’re not trying to block your plans; they simply want to ensure every dollar spent makes sense. Before you approach them, know their top priorities: cost optimization, real-time visibility, compliance, and predictable spending. Use language of intention and purpose—if you are in an economical east, emphasize identifying the best apps. Make It Easy for Them to Say “Yes.” For deeper insights on how to tailor your pitch to their exact priorities, check out our full guide: How to Win Buy-In From Finance Stakeholders.

HR Teams:
To earn support from Human Resources, show that your SaaS approach isn’t just about cutting costs—it’s about improving the employee experience. HR leaders care about onboarding, retention, and ensuring that people have the tools they need to do their best work. Talk about kpis that matter most, like cutting down the time it takes to get new hires up and running. Show them how this leads to happier teams, less frustration, and a stronger company culture. For a deeper dive on how to speak their language, check out our full guide: How to Earn Buy-In From Human Resources Leadership.

Procurement Professionals:
Procurement leaders focus on getting the most value for every dollar spent. They want clear insight into costs, straightforward contract terms, and leverage when dealing with suppliers. A By creating a spend management framework based on data (we’ll explore how to get that data below), it empowers procurement to negotiate favorable contracts and forge better relationships with vendors. To learn more about framing your pitch in a way that resonates with them, check out our full guide: How to Earn Buy-In From Procurement Leadership. 

Security Teams:
For security-minded professionals, the biggest question is: “Are our data and systems safe?” They care deeply about minimizing risk, ensuring compliance, and preventing breaches. If you want to have meaningful conversations about the future of SaaS adoption in your organization, understanding their security mentality is your starting point. For a detailed look at how to earn their trust, check out our full guide: How to Win Buy-In From Security Stakeholders. 

Tailoring Your Message by Region:

Economical East:
Speak directly to cost. Share metrics that show how better tracking reduces waste and drives ROI. You’re telling them: “Here’s how to save more money.” 

Wild West:
Show the benefits of order and oversight. You’re not killing the fun—you’re helping them keep what works and lose what doesn’t. Focus on turning chaos into clarity. I

Secure South:
Highlight how automation and clear approvals can simplify compliance without strangling innovation. You’re making it safe to try new tools, not just shutting the door on them.

In short, tailor your message to what each group values most. By doing this, you’ll transform a quiet IT initiative into a company-wide movement that moves you closer to True North.

Part 3: Tactical Steps to Achieve True North

Change doesn’t have to happen overnight. You can move toward True North step by step, getting small wins along the way. Consider these actions as guideposts. They’ll help you find the right balance between cost, security, and innovation. Each step varies in difficulty, depending on where you’re starting from—but the rewards are worth it.

1. Start with Full App Discovery
Before you can make informed decisions about apps, contracts, and expenses, you should figure out all the apps in your company. You have some combination of shadow apps and an unknown use of sanctioned apps. By making full app discovery a priority, you can understand the extent of your work and open the eyes of other stakeholders. 

Here are some top resources to help you get started with app discovery: 

• Full app discovery playbook
• App discovery template
• Automated app discovery with Torii
• 14-day free trial of Torii’s discovery engine
• What is Shadow IT? [Tactics and Strategies for 2025]
• How to build a data map

2. Implement Centralized SaaS Management
If you’re from the Wild West, this might feel like herding cats. But once you have a single place to manage all your apps, decisions get simpler. You can use manual tools such as a spreadsheet, however, without the right tools in your corner, the task becomes unsustainable. According to the Gartner Magic Quadrant for SaaS Management Platforms, an SMP tool will “help organizations discover, manage, optimize, and automate the SaaS application life cycle from one centralized console. ” The report goes on to say that  “through 2027, over 50% of organizations will centralize SaaS application management using an SMP, an increase from less than 10% in 2024.” 

That just makes sense. You can think of a SaaS Management Platform as sort of like a SAM for SaaS, but—once your SaaS applications are discovered and monitored within an SMP, it allows for some incredible capabilities through automation. Learn more about a SaaS Management Platform

If you use a SaaS Management Platform like Torii, you will quickly gain insight into the following metrics: 

• Applications
• Usage rates and trends
• Expenses
• Contracts and renewals
• Risk profiles
• And more

With that data, your IT team is able to become a strategic partner to every other team. 

3. Empower IT as a Strategic Partner
If you have spent time building influence in the organization and begun to discover, centralize, and monitor cloud applications within your organization—your IT is suddenly the strategic partner that everyone wants. You have the attention and respect of leadership combined with the data that every team wants and didn’t even know existed.

Procurement can finally understand which contracts should actually get renewed
Finance can finally learn which apps are truly worth the spend
Security can understand which apps the team really depends upon

IT leaders can spot trends, highlight savings, and shape decisions that benefit everyone. This is how you turn IT into a trusted advisor, not just a cost center.

4. Create a Framework to Balance Cost, Security, and Impact
By now, you’ve earned your organization’s trust and have the data to prove it. You know what apps are being used, how much they cost, and where potential risks lie. The next step is to create a clear framework that helps everyone understand how new and existing applications fit into the bigger picture.

Start by defining what matters most: controlling costs, maintaining security, and driving meaningful impact. Then, decide how you’ll weigh these factors. For example, an app that’s expensive but mission-critical may still be worth keeping if it delivers unique value. Another tool that’s cheap but underused or risky might need to go. Consider developing a simple scoring system based on criteria like ROI, compliance requirements, and user satisfaction. In doing so, you’ll transform scattered opinions into informed decisions. Leadership can see the logic, and teams can rally around a shared vision.

With a thoughtful Application Rationalization Framework, decisions stop feeling random. Instead, they’re grounded in data and long-term priorities. This is how you set the stage for a SaaS environment that’s both lean and resilient.

5. Automate Key Processes
Once you have a framework, the real magic happens when you put routine tasks on autopilot. Automations handle the daily grind—cleaning up licenses, handling approvals, and flagging potential risks—so you don’t have to. But which processes should you automate first?

To figure that out, take a look at our guide on Five Essential Workflows for IT Operations. It breaks down the types of automations that matter most: the ones that reduce risk, remove bottlenecks, improve visibility, drive ROI, and integrate smoothly with your existing systems. By starting with these essential workflows, you’re not just saving time—you’re elevating the entire SaaS environment to run more efficiently.

In other words, automation lets you work smarter. You preserve what’s great about your SaaS stack while cutting out what’s not, all with less manual effort. The result is a well-oiled machine that supports innovation, keeps costs in check, and stays ready for whatever comes next.

6. Measure and Iterate
Improvement isn’t a one-and-done event. After making changes, check the data. Are you spending less but delivering more value? Are employees happier with their tools? Have you cut down on security gaps? Through Torii’s dashboards, you can watch these metrics in real time. If something isn’t working, adjust. Over time, these small tweaks keep you moving steadily toward True North, shaping a SaaS culture that fits your company’s goals and values.

Conclusion: The Journey to True North

By uncovering hidden apps, winning over key stakeholders, and striking the right balance between cost and security, you’re setting the stage for sustainable growth. Over time, you’ll see teams working more efficiently, budgets stretching further, and security no longer feeling like a roadblock.

Remember that every improvement, no matter how small, helps you move closer to a culture where SaaS tools truly serve the business. Don’t hesitate to lean on resources that guide you through each phase. Whether it’s achieving full app discovery, partnering with your CFO, or automating license cleanups, the Torii SaaS Management Platform can help.

Next Steps:

• Deepen Your Knowledge: Explore the Full Application Discovery Playbook to jumpstart visibility.
• Get Stakeholder Buy-In: Review our tailored guides for Finance, HR, Security, and Procurement leaders.
• Try Centralized Management: Take a closer look at how Torii’s platform simplifies oversight, automates tedious tasks, and empowers IT to become a strategic partner.

Your journey to True North starts with understanding your current culture, then steadily guiding it toward a smarter, more balanced future. Let’s make it happen together.