Reduce Software Costs | clearfind

The proliferation of software is reshaping industries, but this expansion can lead to significant expenses. As the demand for business applications and software solutions grows, organizations are investing increasing amounts of money in these tools within a complex and constantly changing market.

Clearfind offers a solution to this challenge.

Clearfind was established and initially funded by James Layfield and Jocelyn Simons. This startup focuses on providing businesses with clarity and openness when purchasing enterprise software. For the past two years, Clearfind has been developing its core technology, a combination of machine learning and human analysis, to identify and categorize the specific capabilities of various software offerings.

When organizations subscribe to the Clearfind service, they grant the startup access to their systems through integrations with platforms such as Sage, Quickbooks, and SAP. This allows Clearfind to analyze their total software expenditures. Chief Information Officers (CIOs) or Chief Technology Officers (CTOs) can then identify any overlapping functionalities within their existing software portfolio. These leaders can also specify their desired business outcomes, and Clearfind will produce a comprehensive report detailing which Software-as-a-Service (SaaS) products possess the necessary features to address those needs.

Previously, accomplishing this type of analysis could be a time-consuming manual process or require substantial investment – often tens or even hundreds of thousands of dollars – in consulting services. Even then, those consultants might prioritize recommending products from vendors who have paid for prominent placement, rather than the most suitable options.

Clearfind generates revenue by charging a fee of 1.2 cents for every dollar of annual software spending. The company reports that it typically helps clients reduce their expenses by approximately 30 percent by optimizing their software environment and eliminating unnecessary duplication.

Clearfind also earns income through referral fees generated by searches conducted within its platform. Layfield and Simons emphasized that software vendors cannot pay to manipulate search rankings or secure preferential placement on the Clearfind website; instead, they pay only for the leads they receive.

“When a vendor receives a lead from our platform, they value it highly because it represents the most qualified prospect they will encounter,” Layfield stated. “That vendor will have complete information about the potential customer, including their specific requirements and their willingness to pay.”

Layfield further explained that there’s a crucial benefit for vendors in paying a referral fee: the potential lifetime value (LTV) of a Clearfind-generated lead. A customer who genuinely needs and will utilize a product’s features is significantly less likely to discontinue their subscription.

Clearfind is not the only company operating in this space. Other ventures, such as YC-backed Vendr – which is already profitable – also aim to lower SaaS costs, and Intello, which provides insights into software usage and also incorporates a compliance assessment.