Businesses today rely on software for almost everything. From communication and accounting to project management, file storage, customer service, and marketing, companies can subscribe to dozens of online applications within a matter of months.
This convenience has created a growing IT challenge known as SaaS sprawl.
SaaS, or Software as a Service, allows businesses to access software through the internet without installing and maintaining it on their own servers. While SaaS solutions can improve productivity and flexibility, uncontrolled growth in the number of applications can create unnecessary costs, security risks, and management problems.
What Is SaaS Sprawl?
SaaS sprawl occurs when an organization uses a large and growing number of cloud-based software applications without having a centralized system for managing them.
For example, an employee might sign up for a project-management application to make their work easier. Another department may purchase a separate communication tool, while the marketing team subscribes to another platform. Over time, the business may end up paying for multiple applications that perform similar functions.
The problem becomes even greater when IT teams do not have a complete list of the software being used across the organization.
Why Does SaaS Sprawl Happen?
One of the biggest reasons SaaS sprawl develops is how easy it is to purchase cloud software.
Employees can often sign up for a SaaS application using a company email address and a credit card without involving the IT department. This is sometimes referred to as “shadow IT.”
The ease of adopting SaaS is not necessarily a bad thing. Employees can quickly find tools that improve productivity. However, when there is no process for reviewing and approving applications, the number of subscriptions can grow rapidly.
Employee turnover can make the problem worse. When an employee leaves, their SaaS accounts may remain active if nobody knows which applications they were using.
The Hidden Cost of SaaS Sprawl
One of the most obvious problems with SaaS sprawl is unnecessary spending.
A business may continue paying for software that is rarely used, has unused licenses, or duplicates another application already available to employees.
For example, a company might have several employees paying for different file-sharing or project-management platforms when a single existing solution could meet everyone’s needs.
These costs may appear small individually, but dozens of unused SaaS subscriptions can add up significantly over the course of a year.
A regular SaaS audit can help businesses identify unused licenses, duplicate applications, and subscriptions that are no longer necessary.
SaaS Sprawl Can Create Security Risks
Cost is only one part of the problem. Unmanaged SaaS applications can also create cybersecurity vulnerabilities.
Every SaaS platform used by an organization may contain sensitive business information, employee data, customer records, or confidential documents. If an application is not properly reviewed, the business may not know how its data is being stored or protected.
There is also the issue of user access.
When employees leave a company, their access to SaaS applications should be removed promptly. If forgotten accounts remain active, they can become an unnecessary security risk.
Businesses should also review permissions regularly. Employees should generally have access only to the information and applications they need to perform their jobs.
SaaS Sprawl and Compliance
Organizations in regulated industries may face additional concerns.
Using numerous SaaS platforms can make it harder to determine where business data is stored, who can access it, and how long information is retained.
Depending on the industry and applicable regulations, businesses may have specific requirements concerning data protection and access control.
A centralized SaaS management process can make it easier to identify applications, review their security controls, and maintain appropriate access policies.
How Can Businesses Control SaaS Sprawl?
The first step is visibility.
Businesses should create an inventory of the SaaS applications currently being used. This should include applications purchased by the IT department as well as those adopted independently by employees.
Next, organizations can review each application based on factors such as:
- Number of active users
- Annual subscription cost
- Business purpose
- Data stored within the application
- Security controls
- User permissions
- Contract and renewal dates
- Whether another application provides the same functionality
- Companies should also establish a clear process for approving new SaaS applications.
This does not mean employees should be prevented from adopting useful technology. Instead, IT teams can create a simple review process that allows businesses to balance productivity with security and cost control.
How an MSP Can Help
Managing SaaS applications can become difficult as a business grows. An MSP can help organizations create and maintain an accurate software inventory, monitor user access, identify unused licenses, review security controls, and assist with employee onboarding and offboarding.
An MSP can also help businesses consolidate overlapping applications and establish policies for adopting new SaaS solutions.
Instead of discovering unused subscriptions or forgotten accounts months later, businesses can take a proactive approach to SaaS management.
Take Control of Your SaaS Environment
SaaS has transformed the way businesses operate, making powerful software accessible without significant infrastructure investments. However, the convenience of SaaS can also lead to uncontrolled growth in applications, subscriptions, and user accounts.
SaaS sprawl is therefore more than an IT inconvenience. It can increase software costs, complicate security management, and make it harder for businesses to maintain control over their data.
By regularly auditing SaaS applications, removing unnecessary subscriptions, managing user access, and establishing clear software policies, businesses can enjoy the benefits of SaaS without allowing their software environment to become unnecessarily complicated.
For growing organizations, getting control of SaaS today can prevent a much bigger IT management problem tomorrow.
Miracle technologies is a comprehensive NYC based Managed IT Services for Business IT Infrastructures. Our platform is built upon years of unmatched experience at AT&T Labs Research and renowned Wall Street MSPs. We offer cloud computing support, data center support, C suite services, backbone servers support, security servers, 24/7 managed IT support and Business Continuity/Disaster Recovery and protection against cybersecurity threats. It is our mission to make your business cyber secure.