The average mid-size company spends $4,800 per employee per year on SaaS. Our analysis shows 25-35% of that spending is waste. Here's how to reclaim it.
Step 1: Audit (Week 1-2)
Use a SaaS management tool (Zylo, Torii, or Productiv) to discover every SaaS application in use. Most companies find 30-50% more tools than they knew about — "shadow IT" purchased on corporate cards without approval.
Step 2: Identify Waste (Week 3-4)
- Unused licenses: Average company has 30% of licenses with zero login activity
- Duplicate tools: Multiple teams using different tools for the same function
- Underutilized features: Paying for premium tiers when basic would suffice
Step 3: Consolidate and Negotiate (Month 2-3)
Choose one tool per category. Negotiate with remaining vendors using competitive quotes. Commit to annual plans for 15-25% discounts. Time renewals to fiscal quarter-ends for maximum leverage.
Expected Savings
A 200-person company spending $960K annually on SaaS can typically save $250-$350K through this process — enough to fund a significant new initiative.
