I helped my company to save $ 1.3 million by going on a “software eater”: this is what I have learned
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In the past year, my company and fast-blazing start-up-Al itself has put on a “software diet” and we saw transformative results for our operating results, colleague Involvement and our corporate culture. Here the paradox is: in technology, growth often means more software and tooling, but for us this means less.
As our team grew, the number of tools, platforms and subscriptions that we used also took. Most Saas tools start as a fast solution, so that a specific need is quickly resolved when time or sources are tight. But over time they stay around and collect more seats and budget – even if their original value fades. That is exactly what we saw happening. And while our software costs grew, we had a premonition that our productivity Was not useful in addition.
Our software bargain was not about cutting corners or making our teams work harder. It was about to spend intentional and able to eradicate teams to eradicate waste. That mentality became the basis of our internal initiative. The program encouraged employees to think critically about which tools have added the most value to their daily activities and to eliminate the rest.
What happened? To start with, we have saved (and counting) $ 1.3 million, but we also create a more efficient and aligned technical stack that supports our growth instead of hindering it with unnecessary technology. This is how we did it, what we have learned and why I believe that every company should consider a software diet.
Chief Financial Officer at Verkada.
Launch a software diet
We have bound the initiative to a clear incentive: every employee who helped cancel a contract or switch to a considerably cheaper tool has a $ 1,000 bonus. To be eligible, the contract had to be
a) Active at least six months
b) worth $ 10,000 or more annually
c) either downright canceled, replaced with something $ 20,000+ cheaper, or rebuilt in -house
It is crucial that employees had to make meaningful contribution to identifying alternatives, supporting the switch and helping adoption. This was not about suggestions at surface level, but real property and cooperation.
The engine: our “money wise” team
Although this is a grassroots, efforts that each part of the company We needed a team to help our software set. We have brought together a dedicated group from our finances and IT teams to create a new organization with the name “Money sensible expenses”.
As we see it, the expenditure (SMW) team acts as internal consultants for responsible technology and service investments throughout the company. They are a small – but a long -lasting team that has been the key to creating a new culture on software reconsumption.
The results: what $ 1.3 million (and growing) looks like
Since the launch of the initiative at the end of 2024, we have been able to completely throw out 12 tools and replaced four tools with more cost -effective alternatives. To date, this has resulted in $ 1.3 million in savings and we have paid $ 36,000 in cash bonuses to the employees who have driven this efficiency.
But in addition to the figures, streamlining from our providers, we enable us to save time on supplier management, improve the experience of employees and to build up a more effective technology and service portfolio.
For example, we have consolidated our tool for employee involvement with our Performance Review Platform. This streamlined the employee experience So our people can share feedback in one place. This also gave us a clearer picture of feedback from both the employee experience and professional development.
Learned lessons
Saas Bloat is real, but can be repaired. Start by checking everything you pay for with a zero -based mentality and try not to let the tinetition dictate when extending contract innovations. Justify every tool as if it starts all over again.
Incentives work. The stimulans attracted attention – and stimulated action. The cash bonus motivated people to take a fresh look at what they really needed.
Clear rules are important. Clear criteria and structured suitability prevented any cherry picking, so that the program inspired sustainable, sustainable change is the ideal outcome of each diet.
Migrations are difficult. Change management was the key. Some tools had a heavy adoption or long -term lock, which meant patience and planning. Cross-functional dependencies made some migrations more challenging, which required a longer transition plan.
Centralize supervision but decentralize action. The SMW team was essential. A dedicated team stimulates action and process, but employees encourage real change in their own corners of the company.
Wise publishing does not necessarily mean less spending. It is important not only to save costs, but instead to optimize the expenses. Perhaps a software platform that seemed duration at the start can serve more than one team? Ultimately, the goal is to spend with intention. “Less software” should not mean fewer options.
Consider building in -house. In-house solutions, although they require investments, can be adjusted and cost-effective for teams that build exactly what they need. We have also seen firsthand that building tailor -made tools often causes more passion and involvement internally compared to trusting third -party platforms. That said, companies must take into account support in the long term and general maintenance and replacement costs.
Make cost responsibility for everyone’s task. Foster A culture where interrogating expenditure (or broader solutions) is not punished. Regularly evaluating these tools the muscle builds up for teams to be disciplined about long -term consumption.
Diets are difficult – but this works
Diets require discipline, support, stimuli and a goal for sustainable, permanent change. Our software diet led to a cultural shift in our company around software companies that are needed in the era of the acceptance of Saas, and the results showed a significant impact on our overall financial health, cross-functional cooperation and operational clarity.
What would your company save if everyone was paid to cancel software that they don’t really need?
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