SaaS sprawl has become the silent productivity killer in businesses worldwide.

As cloud-based software becomes more popular, many businesses end up with too many apps. Often, no one is keeping track of all these programmes.

This leads to a mess of subscriptions, repeated features, and hidden costs that can hurt your business’s money and how well it runs.

SaaS sprawl causes many problems.

Your IT team finds it hard to keep everything secure. Workers waste time switching between different apps. Your finance team can’t predict costs easily.

Citing from Redline Digital, on average, only 47% of SaaS licences see active use. This means a business could be paying for twice the services it actually needs.

What was supposed to make work easier has now made things more complicated and risky.

But don’t worry—there are ways to fix this.

All you need to do is take the smart steps to control SaaS sprawl. With those steps, you can get your software under control, help your team work better, and save money.

Today we will talk about how to spot, manage, and stop SaaS sprawl. We’ll help you turn your messy IT setup into a smooth-running system.

So, without further ado, let’s get to it!

Identifying SaaS Sprawl in Your Organisation

Before you can tackle SaaS sprawl, you need to recognise its presence in your organisation. Here are key indicators that suggest you’re facing a SaaS sprawl problem:

1. Unclear inventory: You lack a comprehensive list of all SaaS applications used across your organisation.
2. Shadow IT: Employees are purchasing and using software without IT department approval or knowledge.
3. Duplicate functionalities: Multiple departments are using different tools for the same purpose.
4. Underutilised subscriptions: You’re paying for licences or features that aren’t being fully utilised.
5. Security concerns: IT struggles to ensure all applications meet security standards and compliance requirements.
6. Billing confusion: Your finance team encounters difficulties in tracking and managing SaaS-related expenses.
7. Onboarding and offboarding challenges: It’s become complex to grant or revoke access to all necessary applications when employees join or leave the company.

If you recognise these signs in your organisation, it’s time to take action and implement strategies to overcome SaaS sprawl.

More in Nexalab’s blog: What Is SaaS Sprawl? Understanding and Taming Cloud App Growth

Strategies to Overcome SaaS Sprawl

1. Centralised SaaS Management

Establishing a central system for managing all SaaS applications is crucial in overcoming sprawl. This approach provides a single source of truth for your software ecosystem, enabling better control and visibility.

A SaaS Management Platform (SMP) like Octobits by Nexalab can be instrumental in this process. 

It offers a unified dashboard where you can monitor all your SaaS subscriptions, track usage, manage licences, and optimise costs. With Octobits, you gain a bird’s-eye view of your entire SaaS landscape, making it easier to identify redundancies and opportunities for consolidation.

2. Implementing Governance Policies

Developing and enforcing clear policies around SaaS procurement and usage is essential to prevent future sprawl. These policies should outline:

• The process for requesting and approving new SaaS applications
• Guidelines for evaluating software based on security, compatibility, and business needs
• Procedures for regular audits and reviews of existing applications

By establishing these governance measures, you create a framework that promotes responsible SaaS adoption while maintaining control over your IT environment.

3. Enhancing Visibility and Inventory Management

To effectively manage your SaaS ecosystem, you need complete visibility into all applications in use. This involves:

• Conducting a thorough audit of all SaaS applications across departments
• Maintaining an up-to-date inventory of subscriptions, licences, and usage data
• Regularly reviewing this inventory to identify opportunities for optimisation

Effective SaaS management platforms excel in this area by automatically discovering and cataloguing all SaaS applications in your organisation, even those that might be hidden or forgotten.

This comprehensive visibility is the foundation for effective SaaS management. Such tools can help you gain a clear overview of their entire software ecosystem, enabling better decision-making and cost control.

4. User Access and Identity Management

Implementing robust user access and identity management practices is crucial for both security and efficiency. This strategy involves:

• Centralising user authentication through single sign-on (SSO) solutions
• Implementing role-based access control to ensure employees only have access to necessary applications
• Automating the onboarding and offboarding processes to manage access rights efficiently

These measures enhance security and improve the user experience for employees without compromising system integrity.

5. Cost Optimisation Techniques

One of the primary goals in overcoming SaaS sprawl is to optimise costs. Implement these techniques to ensure you’re getting the most value from your SaaS investments:

• Consolidate redundant applications to eliminate unnecessary expenses
• Negotiate better terms with vendors by leveraging usage data and consolidating contracts
• Regularly review and adjust licence allocations based on actual usage
• Identify and eliminate underutilised or abandoned subscriptions

Advanced SaaS management solutions provide powerful tools for cost analysis and optimisation, helping you identify savings opportunities and make data-driven decisions about your software investments.

These platforms offer insights into usage patterns, licence allocation, and subscription renewals, enabling businesses to streamline their SaaS portfolio and reduce unnecessary expenses.

Best Practices for Preventing SaaS Sprawl

While overcoming existing SaaS sprawl is important, preventing its recurrence is equally crucial. Implement these best practices to maintain a lean and efficient SaaS ecosystem:

1. Regular audits: Conduct periodic reviews of your SaaS inventory to ensure it remains optimised and aligned with business needs.
2. Standardisation: Establish a core set of approved applications for common business functions to reduce redundancy.
3. Vendor management: Develop strong relationships with key SaaS vendors and regularly review contracts to ensure you’re getting the best value.
4. Continuous monitoring: Utilise tools like Octobits to continuously monitor SaaS usage and costs, allowing for proactive management.
5. Cross-departmental collaboration: Encourage communication between IT, finance, and other departments to ensure a holistic approach to SaaS management.

More in Nexalab’s blog: 8 Smart Ways to Manage Your Business Software: A Guide to SaaS Best Practices

Conclusion

Overcoming SaaS sprawl is a critical challenge for modern businesses, but with the right strategies and tools, it’s an achievable goal.

Octobits by Nexalab stands ready to support you in this journey. Our comprehensive SaaS Management Platform provides the visibility, control, and optimisation tools you need to tame SaaS sprawl and unlock the full potential of your software investments. From automated discovery and inventory management to cost optimisation and security enhancements, Octobits empowers you to take charge of your SaaS landscape.

Don’t let SaaS sprawl hold your business back. Contact Nexalab today to learn how Octobits can help you overcome SaaS sprawl.