Businesses seek help buying and managing SaaS apps
For most companies, technology is one of the five main elements of a profit and loss (P&L) statement; for many, it’s in the top two. And software accounts for an ever-increasing share of that spending.
“Every business in the world is – for the most part – becoming more dependent on software, and I actually think that’s a good thing because it’s a huge leverage for business,” Seller CEO Ryan Neu says PYMNTS when sharing this data. “Now there’s a host of challenges that come with that.”
On the one hand, companies must decide where to invest during a time of talent shortages, rising inflation and market volatility, Neu said. Another challenge is the rising cost associated with the software that businesses rely on.
Neu founded Vendr, a software-as-a-service (SaaS) purchasing platform, three years ago to help companies save the time and money they spent figuring out how to buy software. This allows procurement professionals, for example, to focus on strategic procurement rather than dealing with 500 SaaS applications.
“SaaS overburdens the business due to the amount of products used,” Neu said.
Combine SaaS purchasing with SaaS management
As Vendr grew rapidly while providing this service, customers began asking for help with spend visibility and tracking.
The company announced on February 23 that it had acquired SaaS management platform Blissfully. Together, the companies will provide customers with a single solution for purchasing and managing SaaS applications.
“Internally, we said it was like ‘one plus one equals three’ because it completes the lifecycle that our customers have been asking for,” Neu said.
SaaS management helps companies understand what they have, if they are used, and if they are still needed. It also helps them deal with the complexity of SaaS expenses such as “shadow IT,” including self-purchased software and known software expenses hidden in the general ledger.
“When we say ‘visibility,’ we’re talking about clarifying those two things so you can get the full picture of what’s being used in the business,” Neu said. “You can’t really start saving money until you know what’s going on.”
Enable better buying decisions
Now bundling SaaS management and SaaS purchasing, Vendr offers the package at a price based on the percentage of spend in the customer’s business. It varies from 1% to 5%, the lower the expenses, the higher the percentage. The company offers a money back guarantee that will save customers more than what it costs.
“Times are tough for tech companies right now, especially startups, and everyone is paying attention to cash burn right now,” Neu said. “When your technology spending increases, what do you do? You need a way to knock that down, and we think the answer to knock it down is Sell.
Now that the company helps buy SaaS and manage SaaS, Vendr is next looking to add the ability to find SaaS. This “discovery bucket” includes understanding what a company currently has and does not have, as well as providing insights into the SaaS that other similar companies are using to gain competitive advantage.
“We want to enable better buying decisions, and that becomes our primary focus over the next 12 to 24 months,” Neu said.