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How SMBs Can Cut IT Costs by 20%

Picture of Amy Daly   Amy Daly  ·  2 minute read

There are reasons Small and Midsize Businesses (SMBs) are often considered the backbone of American business. There are currently more than 33.2 million small businesses in the United States, and they create more than 1.5 million positions every year – nearly 65% of all new jobs. But that’s not all that makes SMBs such a critical part of the U.S. economy – they also contribute close to 45% of our country’s GDP.1

Information Technology and Saas in SMBs  

SMBs are expected to spend about $1.58 trillion on Information Technology in 2025. Of that, a great deal goes toward Software as a service (SaaS), an aspect of IT that is full of issues. For example, in a 2025 survey, SMBs were asked about their SaaS spending habits. About 37 percent of the companies surveyed said they spent up to $600,000 on SaaS, while another 34 percent invested over $1M annually.3 That said, consider the following: 

  • Explosive SaaS Growth: The global SaaS market is on track to reach $300 billion by 2025.3
  • SaaS Sprawl without Control of Spend: Today's enterprises juggle hundreds of SaaS apps, yet IT departments control only a small portion of the spend.
  • License Waste Adds Up: Companies are using just 47% of their SaaS licenses.
  • Renewal Fatigue: The typical organization navigates about 247 SaaS renewals annually, averaging one renewal every business day. 

A Plan for IT Cost Optimization 

Amid all this chaos (or perhaps because of it) executive research and advisory firm, Gartner released a report on IT Cost Optimization. Not only do they believe that organizations waste up to 25% of their IT budgets due to poor visibility, mismanaged vendor relationships, and bloated SaaS portfolios, Gartner also offered a strategy for IT cost optimization.4 It’s a strategy we believe is well aligned with BetterTracker, a unique contract management, SaaS subscription, and IT spend management tool that helps MSPs, IT teams, and SMBs to eliminate waste, stay compliant, and make smarter budgeting decisions across their tech stack. Take a look. 

  • Gartner Optimization Best Practice for Improving Efficiency: Focus teams on streamlining current processes with fewer resources, often through automation or simplification.4
    • BetterTracker allows you to get rid of the renewal spreadsheet and automate the tracking of your contracts. You’ll use fewer resources and never miss a renewal date again. Automatically import and categorize expenses and even set spending alerts.  
  • Gartner Optimization Best Practice for Increasing Productivity: Shift talent and tools from low-value tasks to higher-value initiatives that support business growth.4 
    • BetterTracker effortlessly manages your SaaS subscriptions and contract renewals freeing up your time and others on your team who help keep track of vendors and spend. You’ll have full visibility and control.  
  • Gartner Optimization Best Practice for Managing Demand: Monitor and eliminate low-usage licenses, technical debt, duplicate tools or shadow IT that drain budgets without driving outcomes.4
    • BetterTracker simplifies tech stack management for you and your clients. It’s an easy way to eliminate redundant expenses and ensure you’re paying only for what you need.  
  • Gartner Optimization Best Practice for Reprioritizing Resources: Continuously reassess where IT is investing time and money to align spend with what matters most to the business.4
    • BetterTracker breaks down expenses by category, vendor, and frequency to identify savings opportunities and optimize your budget. 

Running an SMB isn’t easy. Financial anxieties weigh heavily on owners as they contemplate revenue growth, cash flow, taxes, and more. BetterTracker helps alleviate some of the worry and plenty of the hard work. BetterTracker is a centralized, easy-to-use platform that gives businesses full visibility and control over contracts, recurring expenses, and SaaS subscriptions. If you’re ready to gain control, eliminate inefficiencies, and boost productivity, take a moment to schedule a demonstration. Afterall, when it comes to fragmented spreadsheets and surprise renewals, there is a better way…it’s BetterTracker. 

BetterTracker helps finance, IT, and operations teams take control of contracts, subscriptions, and technology spend. By centralizing renewals, eliminating tech sprawl, and providing real-time visibility, BetterTracker empowers businesses to simplify compliance, reduce costs, and make smarter decisions. 

1Source: https://www.uschamber.com/small-business/small-business-data-center 
2Source: https://www.analysysmason.com/ 
3Source: https://www.statista.com/statistics/1472790/smb-saas-annual-spend-globally/ 
4Source: https://www.gartner.com/en/information-technology/topics/cost-optimization