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You’re Drowning in SaaS—Here’s How to Simplify Without Sacrificing Speed

SaaS Is Meant to Be Agile—But It’s Getting Out of Control

SaaS sprawl isn’t coming—it’s already here.

From CRM to collaboration, marketing automation to finance ops, modern businesses are running on a patchwork of SaaS tools. While the goal was speed and agility, the result is often bloated tech stacks, overlapping functionality, and serious visibility gaps.

Sound familiar?

If your IT or security team is struggling to keep up with hundreds of apps, rogue subscriptions, or shadow tools spinning up without governance—this blog is for you.

Let’s break down why SaaS bloat is becoming one of the most overlooked drains on speed and innovation—and what you can do to simplify, secure, and scale.

SaaS Sprawl by the Numbers

  • In 2024, the average mid-size company used over 254 SaaS apps (BetterCloud).

  • 72% of those apps are not managed by IT.

  • 40% are duplicate tools with overlapping functionality.

That means for many companies, more than half of their tech stack is either underutilized, unmanaged—or both. And the more disconnected your tools, the more you risk poor data hygiene, security blind spots, and user frustration.

The Hidden Costs of SaaS Overload

Beyond license fees, the real cost of SaaS bloat is operational drag:

  • Poor integration leads to manual workarounds.

  • Lack of visibility increases security risks.

  • User confusion slows productivity.

  • Shadow IT opens you up to compliance violations.

IT leaders often focus on big-ticket platforms, but it’s the long tail of unused or underused apps that quietly erodes efficiency and exposes your business.

Why SaaS Proliferation Happens

SaaS adoption tends to grow organically—especially in decentralized or fast-scaling companies. Marketing spins up a new analytics tool. Sales tries a productivity plugin. HR signs on for another onboarding app.

It starts with good intentions: solve a specific need quickly, without heavy lift from IT. But over time, this leads to:

  • Redundant tools across departments

  • Subscription costs that don’t align with actual usage

  • Security policies that don’t scale

  • No clear owner for managing integrations or data flows

Before long, no one really knows what’s in the stack—or who’s using what.

Real-World Case Study: Tech Stack Audit Saved $1.2M

A global SaaS company with ~500 employees initiated a tech stack audit and found:

  • 312 active SaaS apps

  • 47% were duplicated in function (e.g., multiple task managers, file sharing tools)

  • Only 22% were integrated into SSO

  • Dozens of tools still had active licenses for ex-employees

After consolidation, offboarding, and renegotiating contracts, the company reduced their annual SaaS spend by $1.2 million—without disrupting a single department’s operations.

This isn’t about cutting tools. It’s about cutting noise.

Security Implications of SaaS Sprawl

Every new app you add to your stack becomes a potential entry point. If IT doesn't know it exists, they can't:

  • Enforce MFA

  • Ensure compliance with data regulations (GDPR, HIPAA, etc.)

  • Monitor activity for insider threats or misuse

  • Offboard user credentials when employees leave

Unmanaged tools = unmanaged risk.

In fact, 68% of security breaches in 2024 were linked to unauthorized third-party apps or misconfigured SaaS settings (Ponemon Institute). The cost of convenience? Compromised security.

How to Take Control: SaaS Stack Simplification Strategies

Simplification isn’t about slashing tools—it’s about aligning them.

Here are 5 actionable steps you can take now:

  1. Run a Full SaaS Audit
    Use discovery tools like BetterCloud, Torii, or Zylo to identify what’s actually in use—and by whom.

  2. Define Ownership by Function
    Assign tool ownership to department heads with input from IT and procurement to avoid duplication.

  3. Standardize on Categories
    Pick 1–2 tools per category (e.g., project management, CRM, analytics) and retire the rest.

  4. Integrate with SSO and Security Tools
    Bring every app into your identity ecosystem—no exceptions.

  5. Build a Review Cadence
    Quarterly reviews help assess new requests and weed out tools that are no longer adding value.

Tools That Can Help You Manage SaaS Sprawl

There’s an entire category of SaaS management platforms (SMPs) designed to help you streamline your stack:

  • Torii – Great for visibility, cost optimization, and usage analytics

  • Zylo – Excellent for vendor negotiations and shadow IT discovery

  • Cleanshelf (LeanIX) – Helps optimize spend across business units

  • SailPoint + Okta – For identity governance and SaaS provisioning

Pair these with CASBs like Netskope or Microsoft Defender for Cloud Apps to reduce shadow app usage even further.

Balancing Control with Speed

One of the biggest fears when simplifying tech stacks is slowing down the business. After all, these tools were adopted to improve speed and agility.

The key is centralized control, not centralized decision-making.

Empower teams to choose tools—but within clear boundaries, categories, and budgets. When IT sets the guardrails and provides pre-approved solutions, innovation doesn’t stop—it accelerates. Because now, teams can build and operate faster, with security and scale already baked in.

The SaaS Explosion Isn’t Slowing Down

According to Gartner, SaaS spend will reach $232 billion globally by 2025, up from $197 billion in 2023. That growth isn’t just from more users—it’s from more tools, more teams, and more decentralized buying.

If your governance doesn’t evolve alongside your tech stack, the problems compound:

  • Data gets siloed

  • Redundant tools waste money

  • IT loses visibility

  • Users become frustrated

In short? Speed without structure eventually leads to burnout and breach.

The New Frontier: Shadow AI Inside SaaS

With the rise of embedded AI in SaaS platforms (think: Copilot in Microsoft, Einstein in Salesforce), companies are now dealing with shadow AI alongside shadow IT.

These AI features can:

  • Generate sensitive content from corporate data

  • Access and analyze user behavior

  • Store and process queries in ways that violate policy

Most organizations don’t even know where or how AI is embedded in their SaaS tools. Without visibility, you can’t assess the risk.

As you simplify your stack, it’s essential to evaluate AI usage, not just app usage.

Final Thoughts: Cut the Bloat, Keep the Velocity

SaaS gives teams power but too much of it can create chaos. If your tech stack feels more like a liability than a competitive edge, it’s time to reset.

Simplifying doesn’t mean scaling back. It means scaling smart.

Give your teams the tools they need but make sure they’re secure, integrated, and adding real value. Because when you align your SaaS strategy with your business goals, you unlock speed, savings, and resilience all at once.

This isn’t about less tech it’s about smarter tech.

Ready to simplify your SaaS stack and regain control? Let’s help you cut cost, reduce complexity, and boost performance. Contact us for a SaaS audit or shadow IT discovery session.

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