SaaS License Management

  • Release version: Xanadu
  • Updated December 4, 2025
  • 2 minutes to read
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    Summary of SaaS License Management

    SaaS License Management in ServiceNow helps organizations efficiently track, control, and optimize cloud-based SaaS and Single Sign-On (SSO) application subscriptions as part of Software Asset Management (SAM). It enhances ownership, visibility, agility, and accountability to improve cost control and resource utilization.

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    The solution distinguishes between two SaaS subscription models:

    • Hybrid SaaS: Combines on-premise installations with cloud subscriptions (e.g., Microsoft 365). Suitable for offline access and compliance needs.
    • Direct SaaS: Fully cloud-hosted applications accessed via browser or app without local installation (e.g., Miro). Prioritizes ease of deployment and remote work support. This summary focuses on managing Direct SaaS applications.

    Managing Direct SaaS Applications

    ServiceNow provides three approaches to manage Direct SaaS licenses based on integration needs, API availability, and Single Sign-On (SSO) configurations:

    • Direct Integration: Offers deep usage insights and automates license reclamation and management for supported vendors, reducing manual work.
    • SaaS License Connections: A flexible, low-code option to connect any SaaS application with a public API using Integration Hub and Workflow Studio, enabling customizable workflows.
    • SSO Integration: Connects via SSO providers (e.g., Okta, Microsoft Entra ID) to identify overlapping software, address SaaS sprawl, and improve cost and access management.

    Request the Software Asset Management - SaaS License Management plugin (snsamsaasint) to begin creating and managing these integrations for license tracking and reclaiming unused licenses.

    Key Features and Tools

    • SaaS Overview dashboard: Analyze subscription usage, compliance, and costs for SaaS and SSO applications to optimize spending.
    • Playbook for SaaS integrations: Step-by-step guidance to integrate SaaS applications through a phased process.
    • Integration profiles: Create and manage profiles to view software usage, optimize stale licenses, and handle multiple configurations through child aliases.
    • Subscription management: View all SaaS and SSO subscriptions, reclaim unused licenses using software reclamation rules, and disconnect or delete integrations as needed.
    • Subscription identifier management: Resolve and manage subscription identifiers across SaaS and SSO applications for accurate tracking.

    Practical Benefits for ServiceNow Customers

    • Gain comprehensive visibility into SaaS and SSO subscription usage and costs.
    • Automate license reclamation to reduce software expenditure.
    • Customize integration workflows for diverse SaaS applications via low-code tools.
    • Address SaaS sprawl by identifying overlapping applications through SSO integrations.
    • Simplify user access and license management across cloud services.

    SaaS License Management helps organizations track and control cloud-based applications and service subscriptions as part of Software Asset Management (SAM). It promotes ownership, visibility, agility, and accountability, enabling better cost control and efficient use of resources.

    SaaS subscription models

    SaaS applications and services are typically subscribed to on a per-user basis. They generally fall into two categories:
    • Hybrid SaaS
      Hybrid SaaS combines on-premise installations with cloud-based subscriptions. It’s commonly used by organizations that require offline access to certain applications while also using cloud features for collaboration. This model is also suitable for businesses with compliance requirements that mandate local installations. For example, a Microsoft 365 subscription enables you to access cloud services and install applications like Microsoft Excel on their devices. SAM supports the following Hybrid SaaS integrations:
    • Direct SaaS
      Direct SaaS refers to applications where all data and functionality are hosted in the cloud and accessed through the internet. You typically log in via a web browser or a dedicated app without installing software locally. For example, a Miro subscriber accesses the application entirely online. This model is common for organizations that prioritize ease of deployment and minimal maintenance, and for teams that work remotely or across multiple locations.
      Important:
      This topic focuses on the Direct SaaS category. It explains how to get started, identifies areas where Direct SaaS can be applied, and outlines ways to use available solutions and workflows effectively.

    Managing Direct SaaS with the SaaS License Management application

    Managing Direct SaaS applications can vary based on organizational needs. The best approach depends on factors such as the level of integration required, available APIs, and whether Single Sign-On (SSO) is in place.
    • Use Direct Integration when you need deep usage insights and automated license management for supported vendors.
    • Use SaaS License Connections when you want flexibility to connect any SaaS app with a public API and prefer a low-code setup.
    • Use SSO Integration when you need visibility into apps connected through an SSO provider and want to address SaaS sprawl.

    For more information about installing SaaS License Management, see Request SaaS License Management.

    Flowchart to guide through SaaS license management
    Table 1. Approaches to manage your SaaS applications
    Option Key features Benefits
    Direct Integration
    • Base system or default direct integrations
    • Automated license reclamation
    • Provides detailed usage insights
    • Automates license management
    • Reduces manual effort
    SaaS License Connections
    • Connect to any SaaS application with a public API
    • Low-code framework using ServiceNow® via Integration Hub and Workflow Studio
    • Flexible for any SaaS application
    • Customizable workflows
    SSO Integration
    • Connect via SSO providers such as Okta and Microsoft Entra ID.
    • Download the list of applications or users
    • Identify overlapping software and rationalize applications
    • Helps tackle SaaS sprawl
    • Improves cost control
    • Simplifies user access management