Navigating the economic storm: how Norwegian companies can unlock savings with smart SaaS management

The global SaaS surge and its financial implications

In a business era increasingly dominated by digital solutions, the rise of Software as a Service (SaaS) stands out as a defining trend. The 2022 Gartner® Market Guide for SaaS Management Platforms provides a clear view of this expansive growth, noting that SaaS subscriptions are escalating at a rate of 15–20% each year. Amidst this surge, 25% of organizations have sought to bring order to the chaos by centralizing SaaS management using a SaaS Management Platform (SMP), according the report by Gartner. On average, companies are now managing about 125 software subscriptions, incurring costs of approximately $1,040 per employee annually — a figure that underscores the significant financial stake companies have in SaaS.

Forecasting the need for SaaS efficiency

Looking to the near future, Gartner predicts a continued trend towards centralization, with 40% of organizations expected to adopt SMPs by 2027 to manage their growing portfolios of SaaS applications. The impetus for this shift is compelling: companies that lack centralized visibility and coordinated management of their SaaS lifecycle are projected to overspend by at least 25%. This overexpenditure stems from incorrect entitlements and a failure to rationalize overlapping tools, pointing to an urgent need for structured SaaS governance.

Norway’s digital dynamics

In Norway’s digital landscape, marked by an impressive 97% internet user rate as of 2020 and a surge in cloud computing adoption, SaaS is gaining significant momentum (Source: Statista). Data from the International Telecommunication Union (ITU) and Statistics Norway paint a vivid picture: private enterprises actively embracing cloud services have grown from 29% in 2014 to 64% in 2021, with 42% of information and communication businesses integrating AI technologies. This confluence of high internet usage, cloud computing, and AI integration is not only reshaping Norway’s business scene but also propelling the SaaS market towards expansive growth and innovation. (Source: Knowledge Sourcing Intelligence)

As the global economy faces turbulence from geopolitical conflicts and financial policy shifts, Norwegian companies are finding themselves at a crossroads. The need to fast track digitalization and at the same time cut costs. Across industries, whether it’s energy, shipping, fisheries, or IT, businesses are increasingly emphasizing cost-cutting measures. While the focus often shifts towards tangible resources such as workforce, raw materials, or operational expenses, there’s an emerging area where significant savings remain largely untapped: Software as a Service (SaaS) expenses and the associated accounting overhead.

Navigating SaaS complexity in the Norwegian market

The embrace of digital transformation in Norway has led to a surge in SaaS adoption, driven by the promise of improved efficiencies and enhanced productivity. Yet, the financial implications of this shift are not trivial. The cumulative effect of numerous SaaS subscriptions presents a complex challenge for financial management within these organizations, particularly when factoring in the associated administrative overhead in managing the subscriptions and reconciling with accounting.

Currency conversion and cost management

For Norwegian companies transacting in a global digital marketplace, the frequent need to convert currencies for SaaS payments adds a layer of financial complexity. The inherent risks of currency fluctuation and the transaction fees involved can inflate the real cost of SaaS tools, often quoted in USD or EUR, which adds to the urgency of establishing more refined financial controls. Even more reason not to have wasteful spending in this area.

Centralizing SaaS management with SMPs

The trend towards using SMPs reflects a broader recognition of the need for robust digital resource management. As companies grapple with the administrative load of managing multiple SaaS tools — each with its own billing cycle, usage metrics, and renewal terms — the role of SMPs becomes critical. These platforms not only streamline management but also serve as a strategic tool for cost containment and resource optimization.

Cardboard: a response to SaaS management needs

In response to these complexities, we built Cardboard as a tailored solution for Norwegian enterprises. It offers a comprehensive overview of SaaS subscriptions, secure payments with virtual cards, automated receipt management, and streamlined SaaS accounting. By enabling businesses to have a centralized view of their SaaS usage, Cardboard helps in making data-driven decisions that ensure optimal return on every investment in SaaS tools.

The current economic landscape, marked by global tensions and supply chain disruptions, compels Norwegian businesses to scrutinize every expenditure closely. The good news is that in the realm of SaaS expenditures, significant opportunities for optimization exist. With effective management, companies can unlock potential savings, reduce redundancies, and avoid the pitfalls of uncoordinated SaaS spending.

The strategic role of Cardboard in cost savings

Cardboard is more than a cost-cutting tool; it is a strategic enabler for Norwegian businesses. By identifying underutilized or redundant subscriptions, Cardboard can help businesses save costs and time. Its impact is felt across the organization, from simplifying the accounting process to empowering informed SaaS allocation among teams and improved budgeting accuracy.

Embracing SaaS management for future prosperity

As the digital economy propels forward, Norwegian companies must embrace strategic SaaS management to remain competitive. By 2027, as the integration of SMPs becomes standard practice, companies like those in Norway that proactively adopt these tools will be well-positioned to manage their SaaS investments effectively. With tools like Cardboard, businesses are equipped not just to survive, but to excel, transforming the way they manage digital resources to achieve economic resilience and sustainable growth.