Business

What is SaaS?

Software as a Service — software delivered via subscription over the internet rather than installed locally; typically the largest growing operating cost for modern SMBs.

SaaS (Software as a Service) is software delivered via subscription, accessed through a web browser or app, and hosted on the provider's infrastructure. The typical Canadian SMB now carries 30–40 active SaaS subscriptions.

Why SaaS spend grows uncontrolled

Friction-free signup — anyone with a corporate card can add a subscription
Trials that auto-convert — most SaaS converts free trials to paid plans without re-confirmation
Per-seat pricing — costs scale with team size, often without anyone re-checking active users
Annual contracts — drift hides from monthly card statements
Integration lock-in — once configured, switching is painful

Audit recovery range

Across Canadian SMB SaaS audits, recoverable spend typically lands at:

Dormant subscriptions: 15–25% of total SaaS spend
Seat over-provisioning: 10–20%
Renewal renegotiation: 8–15% on top of cancellations
Tool consolidation: 30–50% on overlapping tools

A typical 20-person SMB spending $35K/year on SaaS recovers $9K–$15K in year one of a structured audit.