This refers to tools designed to streamline and automate the processes involved in overseeing the usage, compliance, and costs associated with software applications delivered as a service. For example, a growing company utilizing multiple cloud-based platforms for CRM, project management, and marketing automation might employ such a system to track user access, optimize subscription tiers, and ensure adherence to vendor agreements.
The need for this type of solution arises from the increasing reliance on cloud-based applications within organizations. Historically, managing software licenses involved tracking physical media and serial numbers. The shift to cloud computing introduced new complexities, including usage-based billing, fluctuating user counts, and decentralized procurement. Effective administration in this area delivers substantial benefits including cost savings, improved compliance posture, and enhanced operational efficiency by providing centralized visibility and control over software assets.