Introduction
Adobe saved $60 million and transformed its SaaS operations by centralizing management, eliminating inefficiencies, and automating key processes. Here’s how they did it.
The Challenge: Taming SaaS Sprawl and Unlocking Value
As Adobe transitioned to a cloud-first model, it faced the growing challenge of managing a vast and complex SaaS ecosystem. The company had numerous subscriptions across various departments, leading to potential inefficiencies and hidden costs.
Adobe's decentralized SaaS usage created multiple challenges:
- Lack of Visibility: It was difficult to track and manage all SaaS subscriptions across the organization, creating blind spots and potential security risks.
- Redundant Applications: Different departments often purchased similar tools with overlapping functionalities, leading to wasted spending.
- Shadow IT: Employees frequently adopted unsanctioned SaaS applications, increasing security vulnerabilities and compliance risks.
Adobe needed a solution to gain control of its SaaS sprawl, optimize spending, and ensure that its software investments were aligned with its business goals.
The Solution: A Centralized and Strategic Approach
Adobe implemented a comprehensive SaaS management strategy that focused on centralization, automation, and cross-functional collaboration:
Centralized SaaS Inventory: "We needed to establish a single source of truth for all our SaaS applications," says Cynthia Stoddard, Adobe's CIO. To achieve this, Adobe created a centralized inventory of all its SaaS applications, providing a clear overview of its software ecosystem and enabling better tracking and management.
Automated Processes: Adobe recognized the power of automation in streamlining SaaS management. They automated key processes, such as license provisioning, inactive license reclamation, and chargeback processes, saving over 10,000 hours annually. "By automating these tasks, we freed up our IT team to focus on more strategic initiatives," adds Stoddard. This allowed IT to focus on high-value initiatives rather than manual license tracking.
Shadow IT Controls: To mitigate the risks associated with shadow IT, Adobe implemented stricter access controls. This included creating a single portal for employees to access approved software, eliminating software purchases on credit cards.
Security Enhancements: The company also implemented additional security measures, such as multi-factor authentication and single sign-on, to protect sensitive data and ensure compliance with data protection regulations.
Cross-Functional Collaboration: Adobe fostered collaboration between IT, finance, and other departments to align SaaS decisions with business needs and optimize software spending. This cross-functional approach ensured that everyone was on the same page and working towards common goals.
Regular SaaS Audits: Adobe conducted regular audits of its SaaS usage to identify and eliminate redundant applications, optimize licenses, and negotiate better contracts with vendors. These audits helped uncover significant cost savings opportunities and ensured that the company was getting the best value from its software investments.
The Results: Significant Cost Savings and Improved Efficiency
Adobe's strategic approach to SaaS management yielded impressive results:
Cost Reduction: By eliminating redundant applications and optimizing licenses, Adobe achieved $60 million in savings and cost avoidance. To clarify, "cost savings" refers to direct reductions in spending, while "cost avoidance" refers to preventing future expenses. "This was a significant achievement that allowed us to reinvest those savings into other strategic initiatives," says Stoddard. Industry reports estimate that up to 30% of IT budgets are wasted on duplicate or underutilized SaaS applications. Adobe's $60 million in savings demonstrates the impact of proactive SaaS management.
Improved Security: Stricter access controls and security measures led to a significant decrease in shadow IT and a stronger security posture.
Enhanced Efficiency: Automated processes and streamlined workflows improved operational efficiency and freed up IT resources for more strategic initiatives.
Better Collaboration: Cross-functional collaboration ensured that SaaS decisions were aligned with business needs and optimized for both cost and value.
License Harvesting: Adobe reclaimed over 20,000 unused licenses through proactive license harvesting, avoiding unnecessary purchases.
Key Takeaways
- Without centralization, SaaS costs spiral out of control. Adobe’s single source of truth helped reclaim $60M in value.
- Automation isn't just about efficiency; it's about empowering IT to focus on innovation, not manual tasks.
- Collaboration ensures that SaaS decisions aren't made in silos, aligning with broader business needs.
- Regular audits are like financial health checkups for your SaaS stack, preventing waste and optimizing spending.
- Robust security isn't optional; it's the foundation for protecting your business and building customer trust.
Conclusion
Adobe's success story demonstrates the power of a strategic and holistic approach to SaaS management. By centralizing, automating, and collaborating, businesses can optimize their SaaS spending, improve efficiency, and enhance security, ultimately driving sustainable growth and achieving their business objectives.
Adobe's proactive SaaS strategy not only saved millions but also set a benchmark for enterprise efficiency and security. Their approach serves as a model for other large enterprises looking to optimize their software investments and navigate the complexities of SaaS sprawl.
Want to learn more about building a sustainable SaaS business? Check out our comprehensive SaaS Playbook for actionable strategies and insights:
Sources
- Adobe. (2024). Adobe's Journey to SaaS Optimization.
- BetterCloud. (2023). The State of SaaS Management.
- Flexera. (2024). Optimize Adobe Creative Cloud Licenses.
- Forrester Consulting. (2023). The Total Economic Impact™ Of Adobe SaaS Solutions with Microsoft Cloud.
- Gartner. (2024). Market Guide for SaaS Management Platforms.
- NPI Financial. (2024). What is SaaS Management and How Can It Save You Money?
- SHI Blog. (2023). 4 Easy Ways to Optimize Your Adobe Licensing Spend.
- Zylo. (2023). How Adobe Drives Innovation and Massive Savings with Zylo.
- Zylo. (2023). How Adobe Drives Transformative SaaS Management.