Taking charge of SaaS is getting serious
Gartner has released its inaugural Magic Quadrant and Critical Capabilities for SaaS Management Platforms, highlighting a critical demand for centralised management of SaaS applications. With per-employee SaaS spend averaging $1,370—a 55% increase since 2021—and 25% of provisioned licenses going unused, organisations face significant risks. Alarmingly, most organisations are only aware of 40% of their SaaS applications.
IT asset managers should not only leverage Gartner’s research to evaluate market providers but use the analysis and data provided by Gartner as ammunition to prioritise SaaS management within the remit of ITAM given the overlaps.
Key Takeaways for ITAM Teams
1. The SaaS Management Market is Maturing
Gartner’s first Magic Quadrant for SMPs signals a turning point for the industry. As more organizations realize the need for comprehensive SaaS management, ITAM managers should recognize this as an ideal time to refine and elevate their SaaS strategies. The growing maturity of the market is an opportunity to take a more structured, coordinated approach to SaaS oversight, incorporating best practices that extend beyond traditional license or subscription management.
2. SaaS Management Extends Beyond Licensing
While managing licenses and subscriptions is a key function of SMPs, the platforms’ capabilities go far beyond that. Effective SaaS management also involves cost optimization, risk reduction, and improving the overall employee experience. ITAM teams, with their deep expertise in technology management, are well-positioned to take the lead in this area, ensuring that SaaS oversight is comprehensive and aligned with broader business goals.
3. Centralized SaaS Management is Essential
Gartner’s Strategic Planning Assumptions emphasize the importance of centralizing SaaS management. ITAM teams must take a proactive role in this centralization effort, using their experience to optimize costs, reduce risks, and ensure compliance. With the right SMP, ITAM teams can maintain full visibility over SaaS applications, effectively monitor usage, and eliminate waste, all while improving the user experience.
4. Evaluate SMP Vendors Carefully
The SMP market is still relatively young, with numerous niche vendors offering varied solutions. While Gartner’s Magic Quadrant provides valuable insights, ITAM teams should conduct thorough evaluations of SMP vendors, focusing on their capabilities, long-term strategy, and alignment with organizational needs. It’s critical not to rely solely on the top-right quadrant but to assess each vendor’s fit based on specific use cases and business objectives.
As SaaS becomes an even more integral part of the technology stack, organizations can no longer afford to take a fragmented approach to managing these applications. Gartner’s research is a wake-up call for ITAM teams to step up and take charge of SaaS oversight. By centralizing management, fully evaluating SMP vendors, and expanding their role beyond license tracking, ITAM managers can deliver significant value in cost optimization, risk management, and employee satisfaction.
For a deeper dive into future trends in ITAM, be sure to check out our Blackhill Solutions blog post on Key Trends for SAM 2025-2026.
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