Preventing the Perils of SaaS Sprawl

‍Software as a Service (SaaS) has become increasingly popular over the past few years, as businesses of all sizes are looking to take advantage of the many benefits it offers. However, with the rise of SaaS comes the risk of SaaS sprawl – an issue that can have a significant impact on the performance, security, and cost of a business. In this blog, we’ll take a look at what SaaS sprawl is, its causes, how to identify it, the challenges associated with it, and the strategies for preventing it. We’ll also discuss the best practices for managing SaaS sprawl, the benefits of reducing it, how to choose the right SaaS platform, and the tools for monitoring SaaS usage.

What is SaaS Sprawl?

SaaS sprawl is the result of uncontrolled SaaS adoption, where numerous SaaS applications are purchased or subscribed to, often without the knowledge or approval of the IT department. This can result in an organisation having numerous SaaS applications that are not being used, overlapping in features or are redundant, leading to an increase in costs and a decrease in productivity.

It’s important to note that SaaS sprawl is different from Cloud sprawl, which is the result of an organisation running multiple cloud-based applications and services. While SaaS sprawl involves the use of multiple SaaS applications, cloud sprawl can refer to the use of multiple different cloud services, such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).

Causes of SaaS Sprawl

There are several key causes of SaaS sprawl, including inadequate governance and oversight, lack of a centralised SaaS platform, and the proliferation of shadow IT.

First and foremost, inadequate governance and oversight are major contributors to SaaS sprawl. Without a comprehensive governance plan in place, organisations are more likely to purchase or subscribe to SaaS applications without the knowledge or approval of the IT department.

Another key factor is the lack of a centralised SaaS platform. Without a single platform to manage all of the organisation’s SaaS applications, it’s more likely that multiple applications will be used, leading to SaaS sprawl.

Finally, shadow IT is a major cause of SaaS sprawl. Shadow IT refers to the use of IT solutions that have been implemented without the knowledge or approval of the IT department. This can lead to the proliferation of SaaS applications that are used without the knowledge or approval of the IT department, resulting in SaaS sprawl.

How to Identify SaaS Sprawl

Identifying SaaS sprawl can be a challenge, but there are a few key signs to look out for.

The first is an increase in the number of SaaS applications being used. If the number of SaaS applications in use is increasing, SaaS sprawl is likely taking place.

Another sign is a decrease in SaaS application usage. If certain SaaS applications are not being used, or are being underutilised, SaaS sprawl is likely taking place.

Finally, an increase in SaaS costs is a key sign of SaaS sprawl. If the organisation’s SaaS costs are increasing, SaaS sprawl is likely taking place.

Challenges Associated with SaaS Sprawl

SaaS sprawl can lead to a variety of challenges, including an increase in costs, a decrease in efficiency, and an increase in security risks.

First and foremost, SaaS sprawl can lead to an increase in costs. If an organisation is subscribing to multiple SaaS applications that are not being used or are redundant, this will in the end lead to an increase in costs.

Second, SaaS sprawl can lead to a decrease in efficiency. If an organisation is using multiple SaaS applications, it can be difficult to track and manage them. There will be SaaS tools that have an overlap in features or people might not even be aware that certain tools are present in the company, leading to a decrease in efficiency.

Finally, SaaS sprawl can lead to an increase in security risks. If an organisation is using multiple SaaS applications, it can be difficult to ensure that they are secure and compliant with industry regulations.

Strategies for Preventing SaaS Sprawl

The key to preventing SaaS sprawl is to implement a comprehensive governance plan. This plan should include the following strategies:

First and foremost, it’s important to create a centralised SaaS overview. This overview should be used to manage all of the organisation’s SaaS applications and should be accessible to all users.

Second, it’s important to create a process for approving SaaS applications and make one team/person responsible that has a good overview of all SaaS tools and their features. This process could involve IT, finance or procurement and should ensure that SaaS applications are only approved when they are necessary.

Third, it’s important to create a process for monitoring SaaS usage. This process should involve the same team/person and should ensure that SaaS applications are only used when necessary.

Finally, it’s important to create a process for decommissioning SaaS applications. This ensures that SaaS applications are decommissioned when they are no longer necessary.

A SaaS management platform could help with all of this. This type of platform is designed to help monitor the usage of all your SaaS tools, manage all licences and renewals and optimize your SaaS stack where possible to make sure you get everything out of your SaaS investment. Later in this article we will quickly highlight what is important to consider when looking at getting a SaaS management platform

Best Practices for Managing SaaS Sprawl

Once a comprehensive governance plan has been implemented, it’s important to follow a few best practices for managing SaaS sprawl.

First, it’s important to regularly monitor SaaS usage. This will help to identify any SaaS applications that are not being used or are redundant.

Second, it’s important to regularly audit SaaS applications. This will help to identify any SaaS applications that are not secure or are not compliant with industry regulations.

Third, it’s important to regularly review SaaS costs. This will help to identify any SaaS applications that are costing more than necessary.

Finally, it’s important to regularly review SaaS contracts. This will help to identify any SaaS applications that are not providing value for money or are up for renewal.

Benefits of Reducing SaaS Sprawl

There are several key benefits of reducing SaaS sprawl, including an increase in efficiency, a decrease in costs, and improved security.

First and foremost, reducing SaaS sprawl can lead to an increase in efficiency. By reducing the number of SaaS applications in use, organisations can reduce the amount of time it takes to manage and monitor them, increasing efficiency.

Second, reducing SaaS sprawl can lead to a decrease in costs. By reducing the number of SaaS applications in use, organisations can reduce the amount of money they spend on SaaS applications, resulting in a decrease in costs.

Finally, reducing SaaS sprawl can lead to improved security. By reducing the number of SaaS applications in use, organisations can reduce their attack surface, resulting in improved security.

Tools for Monitoring SaaS Usage

It’s important to have the right tools in place to monitor SaaS usage. Of course you can do this all by yourself using your old trusty Excel sheet but there are also plenty of tools that can help you with this.

A tool to consider is a SaaS management platform. This platform should be able to track and monitor SaaS usage and should provide detailed analytics and insights into the usage of all SaaS on the team & personal level as well as insights into your licences & contracts and when they are up for renewal so that you can get a better deal.

How to Choose the Right SaaS Management Platform

When choosing a SaaS management platform, there are a few key factors to consider.

First and foremost, it’s important to consider the scalability of the platform. The platform should be able to scale as the organisation grows, and should be able to handle an increase in users and data.

Second, it’s important to consider the cost of the platform. The platform should be cost-effective and should provide value for money.

Third, it’s important to consider the security of the platform. The platform should be secure and should be compliant with industry regulations.

Fourth, it should be easy to onboard. It should guide you in getting a first overview of your current SaaS landscape and be easy to set up.

Finally, it’s important to consider the usability of the platform. The platform should be easy to use and should be intuitive and user-friendly.

Conclusion

SaaS sprawl is a major issue that can have a significant impact on the performance, security, and cost of an organisation. To prevent SaaS sprawl, it’s important to implement a comprehensive governance plan and to follow best practices for managing SaaS sprawl. It’s also important to choose the right SaaS platform and to have the right tools in place to monitor SaaS usage. By following these strategies, organisations can reduce SaaS sprawl and enjoy the many benefits that it offers.

Take action now to reduce the perils of SaaS sprawl in your organisation. Contact us today to find out how we can help you monitor and track all your SaaS tools and usage and help you reduce SaaS sprawl and save costs.