How CloudHesive halved its SaaS procurement time with Vertice

The Challenge

Two acquisitions in April 2022 and May 2023 broadened CloudHesive’s offerings, but also its vendors. Patrick Hannah, CloudHesive’s CTO and with sole responsibility for procurement, suddenly found himself single-handedly ensuring tools were utilized, not duplicated (especially after the acquisitions), and contracted at best prices and terms. He also needed to handle numerous requests for their renewal, replacement and expansion.

The problem was not only the scale of this responsibility, but also the risk it created. CloudHesive’s proposition depended on its SOC 2 Type 2 certification, and its renewal depended on being able to evidence tight control of its vendor management practices.  

“Our biggest problem was maintaining robust compliance,” says Patrick. “Ensuring compliance with specific regulations was a very painful process and relied on manual back-and-forth, which meant checks could easily slip through the cracks. It was vital for us to fix it, fast.”

‍The Solution 

With the need for SaaS spend management increasingly urgent, Vertice provided the ideal solution. Patrick was able to manage the entire procurement process with Vertice’s Intelligent Workflows platform, including making sure that the correct compliance checks were made at every step. 

The partnership began with a detailed spend audit, in which Vertice analyzed CloudHesive's top 10 highest value contracts, identifying key areas for cost reduction and efficiency. This initial audit laid the foundation for a strong relationship, as Vertice demonstrated immediate value by showing substantial savings opportunities.  While reducing costs was a priority, Vertice also ensured that contracts were optimized for CloudHesive’s unique business needs. This included understanding the nuances of specific features, negotiating favorable terms, and advising on adjustments like removing auto renewal clauses to avoid future surprises, ensuring long-term value and flexibility.

The next part of the solution was  supporting CloudHesive with new software purchases. CloudHesive was expanding its product offerings and needed to ensure that any new vendors met stringent infosec requirements. The team were able to quickly incorporate a security compliance step within their workflow for each tool with frameworks such as SOC 2 Type 2 and ISO 27001 certifications. Vertice's ability to set up this automated approval flow and surface this critical information upfront streamlined the procurement process, saving time and ensuring compliance without the need for repeated vendor checks.

Vertice is now assisting CloudHesive in negotiating with seven of their existing vendors, focusing not just on price but on securing the best possible contract terms. 

"Vertice has become an indispensable tool for managing our procurement processes with their Intelligent Workflows. I needed a solution that could handle the complexity of our vendor contracts while also supporting our audit and compliance needs. Vertice has delivered on both fronts," Patrick shared.

The Results  

Since partnering with Vertice, CloudHesive has transformed its procurement process and regained control of its SaaS spend. By centralizing vendor management, achieving cost savings, and supporting critical audit and diligence processes, Vertice has become an integral part of CloudHesive’s operations, helping the company navigate the complexities of growth and acquisition with confidence.

"We've been able to create scale without needing to hire a full-time procurement individual. Vertice has allowed us to seamlessly implement the rigorous procurement processes within their Intelligent Workflows tool, which are crucial for our ongoing compliance and operational efficiency," Patrick concluded.

Leveraging their deep industry insights and extensive benchmarking data, Vertice helped CloudHesive achieve an average savings of 17% on new purchases and cut approval process times by over half.