Software renewals: The smart checklist every business needs

Every IT professional knows the feeling: the looming fiscal year end and the inevitable task of renewing multiple software tools. Managing SaaS subscription renewals can quickly spiral out of control if you’re not organized. With dozens of tools, renewal dates, and billing cycles to track, it’s easy to miss a deadline or get hit with surprise charges. That’s where a smart software renewal checklist with an effective renewal process comes in—it’s your go-to guide for staying on top of subscriptions, contracts, usage, deadlines, and costs.

In this article, we dive into:

How SaaS subscription management differs from SaaS license renewal processes
Data you need to prepare for software renewals
Comprehensive smart software renewal checklists that reduce stress
Frequently asked questions on SaaS renewals
The role of SaaS management platforms like BetterCloud with BetterCloud Spend Optimization and BetterRenewal price benchmarking

What is a software license renewal and how does it differ from SaaS subscription management?

Let’s back up and discuss the larger concept of SaaS subscription management. This is all about keeping your SaaS tools seamlessly under control. It covers everything from the moment you start planning for it, to signing up, managing billing, handling renewals, and eventually canceling or upgrading as your needs change.

Think of it as managing your entire SaaS experience with a vendor. That includes onboarding the new tool, migrating data, tracking usage, avoiding surprise charges, and making sure you’re not paying for features and functions you neither use nor need. Done right, SaaS subscription management helps your team save money, stay organized, and get the most out of every subscription.

Within subscription management, a big part of that job is managing software renewals.

A software renewal is a recurring process every time a contract is close to expiration. It involves extending or updating the license, subscription, or maintenance agreement for a SaaS solution. At the end of the day, it’s ultimately what allows organizations to continue using it after its current licensing period.

The truth is that software renewal season doesn’t have to be a hassle. With tools like SaaS management platforms with strong SaaS spend optimization, a solid and smart software renewal checklist, helps you streamline the renewal process and reap additional benefits beyond simply renewing your licenses.

Preparing for software license renewals with data-driven insights

Saving on software renewals begins by actually preparing for said software renewal. (You’ve taken this crucial first step!)

With automatic renewals a thing, it’s important to remember to use every bit of data available to you. What data exactly? Two major pieces of data: Software usage and contract price benchmarking.

Measuring software usage

Historically the process of obtaining software usage has been begrudgingly manual or near impossible as not every application shares these metrics that IT and Finance can actually act on. Now thanks to spend management software (like the BetterCloud Spend Optimization module) IT has it easy.

Gathering pricing benchmarks makes the job easier

As for pricing benchmarking, this has been a longtime looming question. Are we paying more than others in our same industry and size?

Enter BetterRenewal from BetterCloud. Leveraging our $35B+ contract database, BetterCloud is able to deliver you the exact insights you need when entering the negotiation process.

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Unlike other benchmarking tools that rely on limited datasets or theoretical models, BetterRenewal taps into our vast repository of real-world contracts. This means you’re not just comparing yourself to hypothetical scenarios; you’re getting insights based on actual deals that have been struck in your industry.”
– John Campbell, Manager, New Products and Channels

Deciding on your software renewal path

Outside of getting the right data, you’ll want to assess the current licensing needs and allotted budget across departments.

Once you have all your I’s dotted and t’s crossed, you’ll have a couple of options going forward with a license renewal:

1. End agreement: If you realize the software you are using isn’t all that, you can make the decision to switch at the end of the lifecycle.

2. Renew and negotiate: If you find that some of the identified disadvantages are fixable, renew the agreement but ask to negotiate a couple of terms. You can leverage the potential loss of business for a better software contract.

3. Renew agreement: If you’ve come to the conclusion that you are satisfied with the software solution and want to move forward as is, renew it. While it might be tempting to continue to renew year after year without revisiting the checklist above, it is not a good step to skip. Your business needs can change over time, possibly demanding new software features or even new products.

Your smart software renewal checklist

The first step is to assemble your renewal team. Gartner claims that 83% of software purchases and renewals are made by teams, so you’re likely no exception.

Before renewing your current software license agreement, pay attention to the following factors.

Contract: Re-read your software contract and ensure there are no risks associated with signing on the bottom line.

Usage: Consider what you are currently paying for and how much the software is actually being used. Determine if you need more or fewer SaaS subscription licenses, or changes to license tiers. The results might bring up an opportunity to switch up the payment model and save on your software spend before reaching any expiration dates.

Purchase history: Check out how your business has been buying the software. If you have been making recurring payments that are harsher on the business bank account, consider switching to a lump sum that will end up saving you some money in the long run.

Upgrades: Take a look at your history with this particular product. If you have been looking for a new feature, check out what the upgrade options have to offer. If you are happy with the version you’ve been working with, there is no need to upgrade.

Vendor performance: Review SLAs and see if there’s been any recurring downtime or slow performance. Make sure there is a record of delivering updates and releases in a timely manner.

Support: Look at the records of your interactions with the technical support team. If you haven’t been using their services very often, maybe downgrade to a cheaper software maintenance option.

Security and compliance: Make sure the tool consistently has met your current standards. evaluate if you need to make any changes in hosting, privacy policies or in data handling.

Return on investment: Ensure there’s measurable and positive ROI or productivity benefits, it still aligns with goals, and solves the business problems that you set out to solve.

Pricing: Assess future budgets to determine acceptable monthly costs. Consider your growth or reductions in seats. Evaluate overages, unexpected support fees, or new integration or functionality charges. Compare similar SaaS tools and their software licensing prices. If a competitor is offering the same features and support for the same price, consider making a switch.

Negotiation: Once you’ve decided you want to renew, make sure to prepare for contract negotiations well. Consider bringing up things like past issues with customer support, pricing competitiveness, change in user count, upgrading your tier, etc.

SaaS Renewal Process FAQs

Q: Why do you need an all-encompassing SaaS renewal process with a checklist?

A: SaaS may be essential to modern operations, but without proper oversight, it’s a bottomless pit of wasted spending. Auto-renewals, unused licenses, and overlapping functionalities silently drain your budget. A smart renewal checklist helps you:

Track renewal dates and contract terms
Monitor actual usage across teams
Evaluate cost-effectiveness
Avoid surprise charges and auto-renewals

Q: How does this checklist help me make smarter SaaS renewals?

A: Smart SaaS renewal management helps you make trouble-free, informed decisions. With a checklist in place, you don’t forget important steps like:

Reviewing the tools your team uses
Deciding whether to renew, upgrade, or cancel
Ensuring you’re getting the best value for your investment

From onboarding and billing to upgrades, downgrades, and cancellations, a well-structured checklist keeps your SaaS stack lean, efficient, and aligned with business goals.

Q: Who needs a SaaS renewal checklist?

A: Whether you’re managing a couple of SaaS apps for a micro-business or a full suite for the largest enterprises, a holistic software renewal checklist helps you focus on the activities needed to arrive at good decisions. It’s especially useful for:

IT and procurement teams managing and supporting multiple vendors
Finance departments tracking software spend
Operations leaders optimizing workflows and tool usage

How BetterCloud makes software renewal processes more effective

To make SaaS renewals pain-free, IT, finance, and procurement can partner with BetterCloud, a 2025 Gartner® Magic Quadrant Leader for SaaS Management Platforms, and consistent G2 Grid winner across many SaaS management platform categories.

Automating management of your SaaS stack – before the software renewal process becomes burdensome – can save time and money. Besides, it’s a great method for keeping track of current SaaS subscription, support, and maintenance costs. It can also help easily spot savings opportunities, and arm you with the data to negotiate new deals with your suppliers.

With BetterCloud, you can stay up to speed on your software spend, contract renewal deadlines and compliance. This SaaS system of record equips you with the knowledge you need to choose what’s best for your business.

Centralized software inventory: BetterCloud offers a centralized repository to manage your organization’s software inventory. This includes details on each software application, its usage, and renewal information.
Renewal notifications: The platform offers renewal notifications and alerts, helping you stay informed about upcoming software renewal dates. This approach helps prevent unintentional lapses in your software subscriptions.
Vendor relationship management: BetterCloud improves vendor management by centralizing vendor communication and information. This is valuable when negotiating renewal terms or discussing contract changes.
Compliance monitoring: Ensuring compliance with software licenses is crucial. BetterCloud allows you to monitor software usage against licensing agreements, helping avoid compliance issues during the renewal process.

To renew or not to renew

That is the question. And at BetterCloud, we know it is not necessarily an easy one to answer.

As time goes on, the software products and features you need to succeed might change as well.

While it may not seem as if you need to switch things up, completely evaluating your current situation with a smart software renewal checklist, as well as examining alternative SaaS tools, are good practices to partake in every time software renewal season comes around.

Want help? Upload a contract to BetterRenewal by BetterCloud for the price benchmarking for effective SaaS renewal processes, join a live demo, or reach out to sales now.

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