The SaaS Management Year In Review with Arlo Gilbert, Founder and CEO of Meta SaaS

The start of a new year is an ideal time for reflection. What did we learn, and how can those insights guide us into the next year? It’s not merely about setting lofty resolutions; it’s about leveraging our experiences to identify opportunities, mitigate risks, and enhance our operational efficiencies.

The Rapid Growth of SaaS

The Software as a Service (SaaS) sector has established itself as one of the fastest-growing segments within the technology landscape, particularly in cloud services. IDC reported staggering growth rates, with the public cloud services market expanding nearly 30 percent in 2017, and SaaS claiming nearly 69 percent of the overall public cloud market share. As companies scramble to navigate this explosive growth, the challenge lies in managing the rapid expansion of SaaS applications across enterprises.

We spoke with Arlo Gilbert, the founder and CEO of Meta SaaS, who has witnessed these transformations first-hand as one of the pioneers in SaaS management software.

Key Trends in the SaaS Industry: 2017 Insights

According to Arlo, 2017 marked a year of unprecedented expansion in the SaaS landscape, primarily without significant consolidation. New entrants flooded the market, introducing specialized SaaS applications across nearly every business function. This rapid proliferation has made it alarmingly easy for companies’ SaaS expenditures and related data to spiral out of control.

Management awareness also began to rise. Organizations started to understand that SaaS necessitates collective oversight rather than leaving individual departments to manage their instances in isolation. High-profile security incidents prompted IT departments to assess their vulnerabilities, particularly regarding shadow IT—unmanaged applications that pose security risks.

Moreover, renowned analyst firms like Gartner and Forrester raised alarms about the financial waste caused by unused licenses and redundant applications. As organizations grappled with these issues, SaaS management became crucial not only for security and compliance but also for financial efficiency.

Surprising Trends

What were Arlo’s surprises from the past year? He noted two significant revelations: firstly, the swift mainstreaming of SaaS management as a critical conversation in IT, and secondly, the significant vulnerability associated with poorly developed API connections. While the SaaS management category is still in its infancy, it’s already a pressing topic for organizations, with frequent discussions among major analyst firms addressing related challenges.

Even more startling was the relative lack of severe security breaches attributed to inadequate APIs, considering the sprawling web of interconnected systems that can expose sensitive data. Organizations began recognizing their vulnerabilities, marking 2017 as a turning point for heightened security awareness.

Meta SaaS’s Evolving Response

Founded in 2016, Meta SaaS has continually evolved its offerings based on insights gained from customer interactions. Arlo has noted three core themes emerging from discussions: SaaS spend management, security, and compliance.

SaaS spend management often takes the lead in conversations. Nevertheless, it’s crucial to recognize security as an increasingly vital concern, especially as organizations search for shadow accounts that could access confidential data. Effective oversight requires knowing what data exists, who is able to access it, and whether those individuals have the necessary permissions. Meta SaaS has integrated security features that offer granular visibility into apps and their utilization, helping businesses shine a light on formerly hidden applications.

The impending GDPR compliance deadline presents another compelling reason for organizations to prioritize SaaS management. With various departments engaged in using cloud-based applications containing potentially sensitive data, it’s essential to develop a comprehensive plan addressing compliance needs.

The Sustainability of SaaS Management Trends

Are these trends fleeting whims or sustainable shifts? Arlo draws parallels between the evolution of SaaS management and the history of cybersecurity practices. Just as firewalls became standard in organizations after a growing recognition of risks, SaaS management is shaping up to be just as essential.

As SaaS adoption grows and APIs proliferate, organizations will need to implement robust security measures. Arlo emphasizes that a SaaS management platform will become as essential as firewalls in the near future.

The Future Direction of SaaS Management in 2018

Looking ahead, Arlo anticipates that 2018 will be significant, particularly with GDPR compliance enforcement looming. Companies, especially larger ones, may face serious repercussions for non-compliance, prompting a nationwide reckoning regarding data privacy practices.

He also predicts that legacy software asset management companies will begin exploring the SaaS management arena, though many of their solutions may not effectively address current challenges. Retrofitting old software rarely succeeds in providing meaningful solutions.

Expect to see acquisitions in the SaaS management space by significant players in security or single sign-on (SSO) sectors. Integrating SaaS management capabilities into established security frameworks may offer a streamlined solution for organizations.

What Companies Should Focus On in 2018

Though GDPR may seem daunting, Arlo believes it provides organizations with the perfect occasion to reassess compliance practices comprehensively. It’s an opportunity to clean house and gain control over data management.

Despite the bullish market landscape, companies must prioritize operational efficiency. Rapid growth can create an illusion of sustainability, but without careful maneuvering, companies could find themselves struggling during economic downturns. Focusing on the bottom line will be essential as businesses look for ways to ensure they are excellent stewards of investor resources.

Flexera’s Vision for 2018

As a frontrunner in SaaS management, Flexera is committed to educating organizations on SaaS risk and expenditure while developing products that solve tangible challenges. Their focus is on delivering SaaS management solutions that empower companies to regain control of their expanding SaaS ecosystems.

In 2018, Flexera plans to continue rolling out new features designed to enhance transparency and provide actionable insights for improved SaaS management. Enhancements to reporting capabilities will support compliance efforts for regulations like GDPR and HIPAA, ensuring organizations can navigate their responsibilities more effectively.