Mike AustinFounder & CEO, Metrixdata 360 Inc. · Mike Austin | Helping enterprises take control of software costs through data, strategy, and relentless execution

Unlocking the Power of SaaS - Episode 9

Name: Unlocking the Power of SaaS - Episode 9
Uploaded: 2023-09-30T15:00:51+00:00
Duration: 1 min 16 s
Channel: Mike Austin
Description: This YouTube episode (Unlocking the Power of SaaS - Episode 9) discusses cost waste from unused or inactive SaaS licenses in large organizations. The…

30 Sept 2023 · 1 min

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1:16

This YouTube episode (Unlocking the Power of SaaS - Episode 9) discusses cost waste from unused or inactive SaaS licenses in large organizations. The speaker estimates "about 20 some odd percent" of assigned users are inactive; using a 10,000-user example that implies 2,000 inactive accounts. With an illustrative E3 cost of about $20/month per license this becomes roughly $40,000/month (≈$480,000/year) in wasted spend for that one product, and the speaker argues total wasted spend across many SaaS products could be substantially higher (speaker suggests an average of about $250 per inactive user when considering multiple applications).

Questions this video answers

About "20 some odd percent" (approximately 20%).

2,000 inactive users (20% of 10,000).

About $40,000 per month (2,000 × ~$20/month).

About half a million dollars per year (speaker says "or half a million dollars a year"; ~ $480,000).

About $250 (speaker: "it's probably more like $250 on average").

Chapters

We know. Right. To my team, when we're looking at Office 365, what do we find all the time? About 20 some odd percent of their users aren't even using, aren't even active on the system. But they have licenses assigned, right? So blocked accounts, service accounts, all that stuff that we go and look for. Right. But the reality is when we go and tell a client that that's $20 a month because they're paying for an E3 for those, you know, 20% of their users. So let's say it's a 10,000 user organization. For those 2,000 users, it's 40,000amonth or half a million dollars a year that you're wasting, right? It's really not 400,000. It's probably more like $250,000, you know, so probably more like 4 million. Because if you think about all the other SaaS applications that they have that they're going to have that. Like if you've got users that are locked, that haven't been on the system in three years, that have, oh, 365 subscriptions assigned to them, they probably got Okta assigned to them. They pro got Salesforce assigned to them. It goes on and on and on. And it's probably more like $250 on average.