“SaaS sprawl” is getting out of hand. In a recent Nintex survey, more than half of U.S. organizations said they have 51 to 200 cloud-based Software-as-a-Service apps in their environments. And the number keeps growing. More than 60 percent said they’re adding new SaaS apps every month, while almost a third said they’re adding new SaaS apps every week.
The problem is so bad that 96 percent of IT leaders say that addressing SaaS sprawl is a moderate to high priority. More than half (55 percent) say that solving SaaS sprawl is a core component of their job description.
Why is SaaS sprawl a problem? The uncontrolled proliferation of SaaS apps creates inefficient workflows, data silos and a chaotic user experience. Organizations often pay for duplicate or unused SaaS applications, which contributes to ballooning cloud costs.
IT faces the administrative burden of managing user access, licenses and security protocols across a large number of applications. SaaS apps, particularly unmanaged ones, increase the risk of data breaches and compliance gaps.
A Problem Years in the Making
For years, SaaS apps have been a cornerstone of the IT team’s strategy to get out of the business of buying, implementing and maintaining data center infrastructure. SaaS shifts those burdens to the cloud provider and enables IT to fulfill user needs quickly without developing new software.
SaaS sprawl is also a symptom of the decentralization of IT purchasing. Accustomed to downloading apps on their personal devices, many users feel empowered to buy cloud-based solutions to solve specific problems. As a result, many SaaS apps are adopted by line-of-business users, often without IT’s knowledge or consent.
Now, IT teams face mounting technical debt. When multiple SaaS tools are used without a central strategy, organizations often resort to building custom, “spaghetti code” integrations to connect them. This creates a complex and fragile system that is difficult and expensive to maintain and update. SaaS sprawl also leads to inconsistencies and poor data quality across applications, hindering decision-making and AI adoption.
The High Cost of SaaS Apps
Many organizations believe that the low monthly subscription for a SaaS app is a small price to pay for the convenience. However, hidden costs can add up. SaaS apps often have generic capabilities that may not match the organization’s specific needs and workflows. Workarounds can sap productivity, require duplicative data entry, and result in miscommunications and missed opportunities. In some cases, organizations need additional SaaS apps to fill gaps in functionality.
Organizations are also tied to SaaS vendors that may not keep up with changing market demands. Sudden substantial price increases are not uncommon, forcing organizations to pay more or go through the pain of finding an alternative.
When users bypass IT to use unapproved SaaS applications, they create another potential entry point for attackers to exploit. These “shadow IT” tools typically aren’t integrated into the company’s security and identity management framework, creating “blind spots” that increase the likelihood of a successful attack. Consumer-grade apps may not have robust security measures, making them easier targets for hackers.
Getting a Handle on SaaS Sprawl
Controlling SaaS sprawl starts with a comprehensive strategy. As an initial step, organizations should inventory all the SaaS apps in their environment, using discovery tools to find any unsanctioned software. Armed with this inventory, IT teams can use the following five techniques to rein in SaaS apps:
Rationalize SaaS apps by evaluating the cloud-based software portfolio to eliminate redundancies and align technology with business goals.
Decommission unused applications and licenses to reduce costs and risks.
Consolidate SaaS vendors to streamline licensing and contract management, centralize data and gain volume pricing discounts.
Integrate best-of-breed applications with core enterprise suites to improve efficiency and data accuracy.
Define clear policies for SaaS procurement, usage and security with consequences for failing to follow them.
Cerium can help you utilize tools such as Microsoft Defender for Cloud Apps to gain visibility into all the SaaS applications in your environment and identify risks associated with them. Our consultants can then help you develop a strategy for controlling SaaS sprawl and better managing your app catalog going forward.
