Feb 25, 2025
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Upon reading threads on Reddit and other platforms, you may encounter suggestions that IT administrators have become obsolete—but how much truth is there to that claim? While the rise in SaaS adoption has indeed transformed the way IT operates, it hasn’t killed the IT admin role. Rather, it has birthed a new discipline: SaaS Operations (SaaS Ops).
Follow along as we explore:
How the IT admin role has evolved in the SaaS age
The biggest challenges for SaaS Ops admins
The importance of a SaaS Ops management strategy for businesses
What are Traditional IT Operations?
Traditional IT operations, also known as IT Ops, refers to the management and maintenance of on-premise IT infrastructure such as servers, networks, and endpoints. It includes tasks like managing the servers, network maintenance, on-prem software configuration, security enforcement, and backups.
What are SaaS operations?
SaaS Ops refers to the management and optimization of an organization’s suite of Software-as-a-Service (SaaS) applications. SaaS Ops admins oversee tasks like user access management, performance monitoring, cost optimization, and vendor relationship management. SaaS Operations also involve leveraging automation and integrations to optimize business workflows.
Summary of key differences between traditional IT Ops and SaaS Ops
5 ways IT administration has changed in the SaaS era
Shift from Infrastructure management to vendor management
IT is moving away from the management of physical components (servers and endpoints) to managing virtual devices and systems. Instead of maintaining hardware uptime, admins are monitoring Service Level Agreements (SLAs) from software vendors to ensure these applications meet organizational performance standards.
Endpoints like computers and routers still exist in the SaaS age and require maintenance. However, networking has been reduced to basic WiFi configuration because users only need an internet connection to access business applications.
While server management still exists in the world of cloud computing, it has largely evolved into a more technically focused role known as “DevOps,” a topic we won’t explore in detail here.
Security
This one is ironic because one of the promises of cloud migration was increased security, yet companies now have a larger threat surface. That’s because while SaaS vendors are responsible for securing their application and its underlying infrastructure, the customer needs to ensure secure access to the app and data protection.
A typical startup with 200 to 500 employees uses about 123 SaaS apps. That’s 123 different ways an attacker can gain unauthorized access to sensitive business data.
The shared security model has also led to increased relevance of compliance standards like SOC 2 and ISO 27001, which prove that a SaaS vendor is following security best practices. These certifications help you, as a customer, to trust the vendor, meet your own compliance needs, and minimize risks.
Decision making
In traditional IT, all new software purchases and implementations typically required IT approval, giving admins tight control over the organization’s tech stack. However, in the SaaS era, especially within tech-savvy companies, employees can often sign up for new tools on their own without IT’s direct involvement.
This decentralized approach often leads to the rise of Shadow IT —- unsanctioned applications that threaten security and compliance. In the SaaS era, administrators must conduct regular software inventories to ensure all applications are properly managed. This includes verifying that offboarding procedures are followed so no former employees retain access to critical systems.
That said, IT input is still largely required for larger organizations with everything to lose in case of a cyberattack. The IT team must incorporate any new tool into the company’s Identity and Access Management (IAM) tool while also determining how the tool fits into their current ecosystem.
Tooling
In the traditional setup, most systems were not built to seamlessly integrate with each other. Admins needed specialized skills to create custom scripts and automate various tasks. On the other hand, most SaaS tools can easily integrate with each other and often feature zero-code automation capabilities.
Consequently, the ratio of employees to IT admins has shifted significantly. A single IT admin can now support 150 to 200 employees—a substantial increase from the traditional ratio of around 70 employees per admin.
Still, for both IT Ops and SaaS Ops, the administration process can be significantly reduced by leveraging dedicated management tools. More on this when we talk about SaaS Ops management strategies.
The emergence of SaaS spend management
In the traditional IT model, software costs were typically fixed and tied to one long-term licensing agreement. With SaaS, however, users pay per-seat, meaning costs can fluctuate based on user counts and app utilization.
The average SaaS expenditure per employee was projected to reach $9,600 by the end of 2023. Interestingly, research shows that 50% of SaaS licenses remain inactive for more than 90 days, suggesting a significant opportunity for cost savings. SaaS Ops teams now play an essential role in optimizing license allocation, monitoring usage, and managing renewals to avoid excessive spending.
The 4 biggest challenges for IT admins in SaaS Ops
As the adoption of SaaS solutions increases, IT admins face unique challenges that don’t exist in traditional IT setups. Here are some of the most pressing challenges:
Data security and compliance
Security and compliance have become more complex to manage, with SaaS applications storing critical data offsite. Each third-party provider represents a potential security vulnerability, and SaaS Ops admins must ensure that all vendors comply with necessary data protection standards, like ISO 27001 and SOC 2 or regional standards such as GDPR or DORA.
Maintaining visibility into each vendor’s security measures and enforcing strict access controls are essential to minimize data risks.
Shadow IT
Software acquisition has been reduced to a simple transaction that can be completed in minutes. Anyone with a virtual credit card can expense a new SaaS tool, hence the prevalence of Shadow IT.
Unapproved apps may lack the necessary security measures, resulting in potential data exposure and compliance gaps. SaaS Ops admins must perform regular software inventories to identify and manage unauthorized tools.
SaaS sprawl
SaaS sprawl occurs as organizations continue accumulating SaaS applications, many of which serve similar purposes or are underutilized. This can lead to redundancy, inefficiency, and excess costs as teams use overlapping tools.
For SaaS Ops admins, managing and optimizing the tech stack is a continuous challenge, requiring careful analysis of usage data and periodic pruning of redundant apps.
License sprawl
The pay-per-seat model is supposed to be a cost-effective option, but businesses often purchase excess licenses, either as a precaution or because they don't have clear insight into how many people actually use the software. Also, as already established, many SaaS licenses remain unused or underutilized as many business tools experience limited use after the initial adoption phase.
SaaS Ops teams need effective license management practices to avoid waste, ensuring that licenses are allocated efficiently and adjusted as the organization’s needs evolve.
Importance of a SaaS operations strategy
To overcome the 4 major SaaS Ops challenges, you need a well-defined approach to SaaS Ops management. And it begins with finding the right person(s) for the job–it could be a dedicated SaaS Ops manager or just someone in your business who has mastered the various aspects of SaaS administration.
You’ll then need to equip them with a SaaS management platform (SMP). This is essential for two reasons:
More effective SaaS Ops management: For example, manually provisioning and deprovisioning user accounts can take hours for every onboarding and offboarding. SaaS Management Platforms can leverage automations to trim the process to only a few minutes. This leaves IT with extra time to refocus on more strategic tasks that drive business outcomes.
Better user experience: For instance, SaaS management platforms support self-service options for routine requests like app access or password reset, minimizing IT bottlenecks and workflow interruptions. Additionally, SaaS admins have complete visibility into business applications and can better develop interconnected workflows that simplify work and boost productivity.
How AccessOwl can help with SaaS Ops
AccessOwl is a complete SaaS management platform that enables IT teams to manage and optimize their organization's suite of SaaS under one central interface. Key features include:
SaaS discovery: AccessOwl combines the two most effective SaaS discovery methods—OAuth log audits and email activity scans—to give you full visibility into your organization’s SaaS stack.
Automated user lifecycle management: AccessOwl can integrate with all the top HRIS solutions allowing you to fully automatically onboard and offboard employees.
Self-service requests: Employees can initiate access requests through Slack, with requests routed to the appropriate managers for approval.
Advanced access controls: Supports advanced options like time-based permissions to facilitate least-privilege access across applications and protect sensitive data.
SaaS spend management: AccessOwl can track SaaS spend down to the individual level. It will also notify you when SaaS renewal dates are near so you can remove unused licenses and renegotiate better terms.
Vendor management: This SMP helps you monitor important vendor information like the types of data vendors handle, data location, vendor compliance certifications, and authentication methods.
Conclusion
As businesses continue to shift to the cloud, IT Operations must evolve to stay effective. SaaS Ops is more than a response to these changes—it’s an opportunity for IT teams to move from a purely supportive role to strategic business partners who enhance operational efficiency, improve user experience, and drive business growth.
Book a demo to explore how AccessOwl can transform your SaaS Ops management strategy and help your business thrive in the new age.
