Get an overview of your company’s recurring costs – Subscription management for CEOs
It’s never been more important to exploit the thousands of subscription-based services on the market. They make your employees more efficient and keep your company competitive. But with the rise of subscription-based services, we find ourselves battling new challenges. The lack of an overview makes the average 50-employee company lose €20.000 annually on unused subscriptions.
More and more services are bought as a subscription. In fact, companies use two to three times more subscription-based services than they believe (SaaS, memberships, newspapers etc). The lack of a clear overview of how much is being spent and what is really being used makes companies waste more money on unused subscriptions and user accounts each year.
Companies waste 15-20% of what they spend on subscriptions
Most companies fear the work of putting together an overview of all subscriptions, costs and users. It is tedious and time-consuming. But it is well worth the effort. Today a company spends about €2.000 per employee and year just on SaaS, which is often more than they spend on hardware.
“I almost choked on my morning coffee when I saw how much we spend on subscriptions.”
Jörgen Aaroe, CEO of Dirsys
Spend on subscription-based services is exploding
Spending on subscription-based services has exploded since 2015, and there is no sign of this trend slowing down. On the contrary, global spending is forecasted to increase by almost 20% per year over the next five years.
Not just IT’s problem anymore
Ten years ago, IT drove all major technology purchasing decisions. Today, with thousands of subscription-based services available, it is both impossible and unnecessary for IT to evaluate the right technology for every department’s needs. Nowadays, anyone can choose, purchase and implement them.
But there are some risks to be aware of. For example, decentralised purchasing makes it much harder to prevent unwanted access to your company’s data as ownership is spread out across the organisation. In a recent study by Osterman Research 89% of the recipients said they had access to at least one subscription from their former employer.
“As a small organisation, you think you’re in control of these things. Substly showed us otherwise.”
Robert Orbelin, Director at Gothenburg School of Business, Economics & Law
Getting an overview isn’t as hard as you think
Subscription management tools have only been available to large corporations but with the rise of services like Substly, it is easier than ever for small and medium-sized companies to gather their subscription-based services, users and costs in one place. Make sure you get the overview you need and help you avoid leaving money on the table.