Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, IT Asset Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers Why It Matters: Okta is a key enabler for the discovery and management of SaaS, which is a necessary enabler for establishing the SaaS inventory and user identities needed…
Note: This blog contains excerpts from an Amalgam Insights Market Milestone covering this funding round in greater detail. To get the full story, please download the report.
On January 23, 2018, Zylo, a SaaS (Software as a Service) Optimization platform based in Indianapolis, Indiana, announced a $9.3 million funding round led by Bessemer Venture Partners with participation from Salesforce Ventures and the Slack Fund. In addition, previous investors High Alpha Capital, GGV, SV Angel, and Hyde Park Venture Partners also participated in this round. Zylo has previously been covered by Amalgam Insights in multiple reports and webinars as a market leader in the SaaS Optimization space and this funding round marks Zylo as an early leader in the battle to manage enterprise SaaS spend.
A generation of IT has been trained on the practice of Software Asset Management, which has been built on the focus of audit-based license agreement compliance. As the enterprise software market has moved to SaaS, the need for regular audits has decreased because of a fundamental shift from vendor-driven contract enforcement to client-friendly policies for adding new licenses and services.
As software shifts from being a license-based capital expenditure asset to a usage-defined operational expenditure service, the foundational nature of software management must change as well. Rather than managing software as a sunk cost with the goal of squeezing the maximum utilization out of an initial license before the software becomes obsolete, companies must now treat Software as a Service as a constantly renewing and updated functionality aligned to specific business roles.
The trade-off for the ease-of-use and support for SaaS is that enterprise software contracts are harder to negotiate because a number of buyers may end up purchasing SaaS and the purchase cycle is built to support consumerized purchases through P-cards, expense accounts, and line-of-business operational budgets rather than through a formal IT process.
As a result, the traditional world of SAM compliance and top-down procurement is being replaced with the need for cost management solutions that focus on: