SaaS spending has exploded; companies now spend $1,370 per employee, up 55% since 2021.
The problem? About 25% of those software licences gather dust, unused. This waste happens because teams can’t track all their software properly.
Modern vendor management tools help solve this expensive headache. They show you exactly which tools your team uses (and doesn’t use), helping prevent overspending.
Plus, they keep your data safer by spotting unauthorised apps that could put your company at risk.
More companies are catching on.
In Gartner’s forecast, by 2027, over half of organisations will use these tools to manage their software. There is no doubt about it.
In fact, today, only 10% do. This isn’t just about saving money. It’s about working smarter and safer.
As mentioned before, unused software licences often indicate inefficient processes. To address this, you need to explore “Your SaaS Helping or Hurting? So, It’s Time for SaaS Vendor Management.”
Top SaaS Vendor Management Tools in 2024
Octobits
Octobits centralises SaaS vendor management into a single dashboard for IT departments and managed service providers (MSPs).
It integrates with major IT vendors like Microsoft 365, AWS, and Proofpoint, offering seamless device management, billing tracking, and reporting.
The platform streamlines device management, billing consolidation, and comprehensive reporting features.
A notable aspect is its single login system that eliminates the need for multiple credentials across different vendor platforms.
Pros and Cons
The strengths of Octobits include its centralised dashboard, which integrates billing, device management, and reporting into a single platform.
Its compatibility with popular IT vendors like Azure and CrowdStrike adds flexibility for IT managers and MSPs.
The all-in-one login feature eliminates the hassle of managing multiple credentials.
However, while the free plan until December 2024 is appealing, businesses may face abrupt cost increases once the promotion ends.
Some users may also find its analytics less advanced for large-scale operations compared to Zylo or Torii.
Pricing
Octobits is free until December 2024, making it an attractive option for budget-conscious businesses.
This trial period allows organisations to explore the full feature set without financial commitment.
After December 2024, pricing plans will likely depend on the scale of services, but detailed cost structures remain unclear.
Zylo
Zylo is designed for managing SaaS vendor contracts, costs, and compliance. It supports visibility across all SaaS applications, categorising over 22,000 apps in its library.
Zylo’s tools are particularly useful for evaluating vendors for cost-efficiency, a critical step in SaaS optimization. For strategies, see “Evaluating SaaS Vendors for Cost-Efficiency: How to Find the Right Balance.”
Pros and Cons
Zylo excels in providing comprehensive insights into SaaS management, particularly for enterprises.
Its extensive app library ensures no software goes unnoticed, and its automation capabilities simplify contract renewals.
However, its enterprise-grade features come at a premium, making it less accessible for smaller organisations.
Its focus on financial tracking and governance might overshadow user-friendly workflows needed for everyday SaaS tasks.
Integration options, while robust, require setup expertise, potentially delaying implementation.
Pricing
Zylo operates on a custom pricing model based on organisational needs, making it flexible but less predictable for budgeting.
Typical contracts involve comprehensive features like spend tracking, renewal management, and app categorisation, tailored for enterprise clients.
Torii
Torii focuses on simplifying vendor management software by providing visibility into SaaS usage, spending, and compliance.
With AI-powered discovery, it identifies up to 4x more shadow IT apps than traditional tools.
Pros and Cons
Torii’s key advantage is its ability to reveal hidden SaaS apps, which addresses a common pain point in vendor management tools.
Automated workflows for onboarding, offboarding, and licence optimisation streamline operations, saving time and costs.
Its open platform supports customisation, empowering IT teams to adapt the tool to evolving needs.
However, the platform’s heavy reliance on integrations may pose challenges for businesses with limited technical resources.
While it excels in discovering shadow IT, it may lack advanced spend analytics compared to Zylo or Productiv.
Smaller companies might find its robust features underutilised due to less complex SaaS needs.
Modern vendor management tools not only reduce waste but also help in fostering better vendor relationships. Learn more in “Love SaaS, Hate the Bills? How Building Relationships with SaaS Vendors.”
Pricing
Torii offers a free 14-day trial, allowing businesses to test its vendor management software without commitment.
Beyond the trial, pricing is customised based on the organisation’s size and requirements.
So, you can contact the Torii sales team for specific pricing details, as pricing varies depending on company size and needs.
BetterCloud
BetterCloud’s vendor management software includes 90+ integrations and 1000+ actions available out-of-the-box.
The platform emphasises procurement automation and vendor relationship management through its no-code workflow builder.
Pros and Cons
BetterCloud excels in automating workflows, reducing onboarding time by 75%, according to customer case studies.
Its emphasis on security with tools like least-privilege models and external user controls enhances data safety.
The no-code workflow builder makes it accessible even for non-technical teams.
However, its advanced features, such as granular controls, can feel overwhelming for small organisations with limited IT resources.
The reliance on pre-built integrations might restrict flexibility for niche SaaS tools.
Furthermore, while it guarantees 3x ROI within 90 days, its pricing may deter smaller firms focused on procurement simplicity rather than comprehensive governance.
Efficient IT operations depend on solid vendor management strategies. Discover the fundamentals in “Fundamental Vendor Management: Your Key to Efficient, Cost-Effective IT.“
Pricing
BetterCloud operates on a tiered pricing structure based on user licences and required features.
While exact costs are not publicly available, its enterprise-grade tools suggest premium pricing.
Customers can expect high upfront costs but significant long-term savings from automation and risk mitigation.
Productiv
Productiv’s vendor management tools combine AI-powered insights with procurement automation for the entire SaaS lifecycle.
Their procurement features include intelligent integrations and intuitive workflows that maintain governance while streamlining vendor relationships.
Pros and Cons
Productiv’s standout feature is its real-time data analytics, which offers a clear view of SaaS usage across departments.
It empowers procurement teams with negotiation insights and cost benchmarks, enhancing vendor management efficiency.
Its ability to deliver up to 4x ROI within months highlights its cost-effectiveness.
However, smaller companies may find its enterprise-focused features excessive for simpler procurement needs.
The platform’s advanced analytics can require a learning curve, and its focus on app-level details might divert attention from the overall SaaS strategy.
Despite these limitations, its collaborative approach benefits organisations with siloed IT and finance teams.
Pricing
Productiv follows a customised pricing model, aligning with organisational size and SaaS complexity.
Though costs are undisclosed, customer reviews indicate rapid ROI, often within months.
As SaaS adoption grows, mastering vendor management will be critical. Learn best practices in “SaaS Vendor Management Best Practices: 5 Strategies for 2025 Success.”
Comparison of the Best SaaS Vendor Management Tools
For small and medium-sized businesses, Octobits offers a practical vendor management solution with straightforward features.
The platform integrates with essential IT vendors like Microsoft 365, Azure, and AWS, providing a single dashboard for basic procurement and vendor relationship management.
Its free-until-December-2024 pricing model makes it accessible for smaller organisations starting their vendor management journey.
While Octobits is a vendor management tool for SMBs, other vendor management tools are designed for larger companies.
These platforms tend to be more expensive and complex than Octobits. However, they also offer a wider range of features.
For example, Torii can discover up to four times more apps than expected and helps businesses to cut SaaS costs by as much as 30%.
BetterCloud helps businesses control SaaS costs, reclaim unused licences, and manage spend.
Productiv helps businesses make better decisions throughout the SaaS lifecycle by providing actionable, AI-powered insights.
And Zylo gives businesses answers and workflows to manage software with confidence.
However, unauthorised apps often expose companies to security risks, underscoring the need for effective vendor risk management. Learn more about assessing these risks in “Vendor Risk Management: Definition & How to Determine.”
In Closing
Modern SaaS vendor management tools have become indispensable for organisations seeking to streamline procurement, optimise costs, and manage software efficiently.
These solutions excel at managing extensive SaaS portfolios, but they often have higher costs and steeper learning curves.
Now, the right choice depends on business size and needs.
While Octobits simplifies SaaS management for smaller organisations, enterprises benefit from the advanced functionalities of other vendor management tools designed for scale and complexity.
