Upon reading threads on Reddit and other platforms, you may encounter suggestions that IT administrators have become obsolete, but how much truth is there to that claim? While the rise in SaaS adoption has indeed transformed the way IT operates, it hasn’t killed the IT admin role. Rather, it has birthed a new discipline: SaaS Operations (SaaS Ops). As cloud-native companies become the norm and remote-first work continues in 2025, SaaS Ops has become essential to how modern businesses manage scale, security, and spend. Understanding how the IT admin role has evolved helps organizations future-proof their infrastructure and operations.

Follow along as we explore:

• How the IT admin role has evolved in the SaaS age

• The biggest challenges for SaaS Ops admins

• The importance of a SaaS Ops management strategy for businesses

What are Traditional IT Operations?

Traditional IT operations, also known as IT Ops, refers to the management and maintenance of on-premise IT infrastructure such as servers, networks, and endpoints. It includes tasks like managing the servers, network maintenance, on-prem software configuration, security enforcement, and backups.

In the past, IT Ops served as the backbone of internal systems. Admins were responsible for the health and uptime of hardware in physical office locations. This model worked when most business applications were installed and hosted locally. However, as businesses migrated to cloud-based apps and remote work increased, maintaining physical infrastructure became less relevant to day-to-day operations.

By 2025, many organizations either rely entirely on SaaS tools or use a hybrid infrastructure. This makes traditional IT Ops skills foundational but no longer sufficient on their own.

What are SaaS operations?

SaaS Ops refers to the management and optimization of an organization’s suite of Software-as-a-Service (SaaS) applications. SaaS Ops admins oversee tasks like user access management, performance monitoring, cost optimization, and vendor relationship management. SaaS Operations also involve leveraging automation and integrations to optimize business workflows.

In 2025, the average mid-sized business uses over 100 SaaS tools. Managing these applications requires a modern skill set that blends IT knowledge with an understanding of procurement, security, and automation. SaaS Ops isn’t just an evolution of IT; it’s a discipline that reflects how business is done today.

Organizations that invest in SaaS Ops gain clearer visibility, reduced costs, and fewer compliance risks, all of which are critical as software ecosystems grow more complex.

Summary of key differences between traditional IT Ops and SaaS Ops

This comparison shows why SaaS Ops is no longer just a side task for IT but a specialized function. As businesses demand more flexibility and digital agility, the need for scalable, cloud-native IT operations has become a strategic priority.

5 ways IT administration has changed in the SaaS era

1. Shift from Infrastructure management to vendor management

IT is moving away from the management of physical components (servers and endpoints) to managing virtual devices and systems. Instead of maintaining hardware uptime, admins are monitoring Service Level Agreements (SLAs) from software vendors to ensure these applications meet organizational performance standards.

In 2025, vendor management now includes evaluating security certifications, managing contract renewals, and ensuring performance aligns with business needs. IT teams spend more time negotiating terms and managing integrations than they do configuring physical networks. This shift has made vendor relationship skills just as valuable as technical skills in modern IT.

2. Security

This one is ironic because one of the promises of cloud migration was increased security, yet companies now have a larger threat surface. That’s because while SaaS vendors are responsible for securing their application and its underlying infrastructure, the customer needs to ensure secure access to the app and data protection.

With phishing, credential stuffing, and lateral movement attacks still on the rise in 2025, shared responsibility models require tighter user access controls. Admins must now implement tools like SSO, MFA, and activity monitoring to reduce vulnerabilities. Compliance is also under greater scrutiny due to international regulations like DORA in the EU, making proactive security a non-negotiable priority.

A typical startup with 200 to 500 employees uses about 123 SaaS apps. That’s 123 different ways an attacker can gain unauthorized access to sensitive business data.

The shared security model has also led to increased relevance of compliance standards like SOC 2 and ISO 27001, which prove that a SaaS vendor is following security best practices. These certifications help you, as a customer, to trust the vendor, meet your own compliance needs, and minimize risks.

3. Decision making

In traditional IT, all new software purchases and implementations typically required IT approval, giving admins tight control over the organization’s tech stack. However, in the SaaS era, especially within tech-savvy companies, employees can often sign up for new tools on their own without IT’s direct involvement.

This decentralized approach often leads to the rise of Shadow IT —- unsanctioned applications that threaten security and compliance. In the SaaS era, administrators must conduct regular software inventories to ensure all applications are properly managed. This includes verifying that offboarding procedures are followed so no former employees retain access to critical systems.

That said, IT input is still largely required for larger organizations with everything to lose in case of a cyberattack. The IT team must incorporate any new tool into the company’s Identity and Access Management (IAM) tool while also determining how the tool fits into their current ecosystem.

As workplace software becomes more consumerized in 2025, IT must shift from gatekeeper to enabler. While decentralization supports speed and innovation, it also introduces risk. IT teams now need lightweight approval processes, visibility tools, and clear policies to balance agility with governance. They must also stay in close collaboration with finance and compliance teams to ensure risk-aware software adoption.

4. Tooling

In the traditional setup, most systems were not built to seamlessly integrate with each other. Admins needed specialized skills to create custom scripts and automate various tasks. On the other hand, most SaaS tools can easily integrate with each other and often feature zero-code automation capabilities.

Consequently, the ratio of employees to IT admins has shifted significantly. A single IT admin can now support 150 to 200 employees—a substantial increase from the traditional ratio of around 70 employees per admin.

Thanks to SaaS automation in 2025, onboarding, offboarding, access requests, and reporting can be managed with little to no manual work. This allows IT teams to scale efficiently without proportional headcount increases. However, leveraging these efficiencies still requires a centralized strategy, often through a SaaS Management Platform (SMP), to avoid tool fragmentation and wasted spend.

6. The emergence of SaaS spend management

In the traditional IT model, software costs were typically fixed and tied to one long-term licensing agreement. With SaaS, however, users pay per-seat, meaning costs can fluctuate based on user counts and app utilization.

The average SaaS expenditure per employee was projected to reach $9,600 by the end of 2023. Interestingly, research shows that 50% of SaaS licenses remain inactive for more than 90 days, suggesting a significant opportunity for cost savings. SaaS Ops teams now play an essential role in optimizing license allocation, monitoring usage, and managing renewals to avoid excessive spending.

In 2025, economic pressure has made software ROI a board-level concern. CFOs now look to IT not just for stability, but for cost visibility and optimization. SaaS Ops teams are uniquely positioned to identify waste, consolidate underused tools, and negotiate renewals more effectively. Cost governance is no longer optional, especially as spend per employee continues to rise.

The 4 biggest challenges for IT admins in SaaS Ops

As the adoption of SaaS solutions increases, IT admins face unique challenges that don’t exist in traditional IT setups. Here are some of the most pressing challenges:

1. Data security and compliance

Security and compliance have become more complex to manage, with SaaS applications storing critical data offsite. Each third-party provider represents a potential security vulnerability, and SaaS Ops admins must ensure that all vendors comply with necessary data protection standards, like ISO 27001 and SOC 2 or regional standards such as GDPR or DORA.

By 2025, regulators and customers alike expect companies to have a full audit trail of how data is accessed and protected. SaaS Ops plays a key role in maintaining that visibility, particularly as more business-critical workflows move to cloud-native platforms.

2. Shadow IT

Software acquisition has been reduced to a simple transaction that can be completed in minutes. Anyone with a virtual credit card can expense a new SaaS tool, hence the prevalence of Shadow IT.

As app fatigue and tool sprawl worsen in 2025, the risk of data leaks and poor governance grows. Shadow IT also complicates tasks like offboarding, where untracked tools can leave open access points. SaaS Ops must bring visibility to this chaos and develop processes that support secure, authorized tool adoption.

3. SaaS sprawl

SaaS sprawl occurs as organizations continue accumulating SaaS applications, many of which serve similar purposes or are underutilized. This can lead to redundancy, inefficiency, and excess costs as teams use overlapping tools.

In 2025, companies are prioritizing digital consolidation to improve workflows and reduce cognitive load for users. SaaS Ops helps streamline the app ecosystem, encouraging teams to adopt fewer, better-integrated tools. This improves not just cost efficiency but also productivity and security.

4. License sprawl

The pay-per-seat model is supposed to be a cost-effective option, but businesses often purchase excess licenses, either as a precaution or because they don't have clear insight into how many people actually use the software. Also, as already established, many SaaS licenses remain unused or underutilized as many business tools experience limited use after the initial adoption phase.

With budgets tightening in 2025, license waste is under heavy scrutiny. SaaS Ops enables real-time tracking of license usage, allowing companies to reclaim unused seats, renegotiate contracts, and adopt just-in-time provisioning strategies that ensure efficient use of every dollar spent.

Importance of a SaaS operations strategy

To overcome the 4 major SaaS Ops challenges, you need a well-defined approach to SaaS Ops management. And it begins with finding the right person(s) for the job–it could be a dedicated SaaS Ops manager or just someone in your business who has mastered the various aspects of SaaS administration.

You’ll then need to equip them with a SaaS management platform (SMP). This is essential for two reasons:

• More effective SaaS Ops management: For example, manually provisioning and deprovisioning user accounts can take hours for every onboarding and offboarding. SaaS Management Platforms can leverage automations to trim the process to only a few minutes. This leaves IT with extra time to refocus on more strategic tasks that drive business outcomes.

• Better user experience: For instance, SaaS management platforms support self-service options for routine requests like app access or password reset, minimizing IT bottlenecks and workflow interruptions. Additionally, SaaS admins have complete visibility into business applications and can better develop interconnected workflows that simplify work and boost productivity.

As of 2025, organizations with an SMP in place report fewer security incidents, lower license waste, and faster time-to-value from new software tools. It's a foundational investment for scaling securely and efficiently.

How AccessOwl can help with SaaS Ops

AccessOwl is a complete SaaS management platform that enables IT teams to manage and optimize their organization's suite of SaaS under one central interface. Key features include:

• SaaS discovery: AccessOwl combines the two most effective SaaS discovery methods—OAuth log audits and email activity scans—to give you full visibility into your organization’s SaaS stack.

• Automated user lifecycle management: AccessOwl can integrate with all the top HRIS solutions allowing you to fully automatically onboard and offboard employees.

• Self-service requests: Employees can initiate access requests through Slack, with requests routed to the appropriate managers for approval.

• Advanced access controls: Supports advanced options like time-based permissions to facilitate least-privilege access across applications and protect sensitive data.

• SaaS spend management: AccessOwl can track SaaS spend down to the individual level. It will also notify you when SaaS renewal dates are near so you can remove unused licenses and renegotiate better terms.

• Vendor management: This SMP helps you monitor important vendor information like the types of data vendors handle, data location, vendor compliance certifications, and authentication methods.

In a time where every dollar and data point matters, AccessOwl provides the visibility and automation that modern IT teams need to succeed.

Conclusion

As businesses continue to shift to the cloud, IT Operations must evolve to stay effective. SaaS Ops is more than a response to these changes. It’s an opportunity for IT teams to move from a purely supportive role to strategic business partners who enhance operational efficiency, improve user experience, and drive business growth.

Book a demo to explore how AccessOwl can transform your SaaS Ops management strategy and help your business thrive in the new age.