Running a business often requires using numerous cloud-based software applications to keep up the productivity.
But here’s the catch: as you add more and more of these apps, things can quickly get out of hand. This messy situation is what we call “SaaS sprawl.”
When your cloud apps grow without control, you might end up with duplicate tools, security risks, and unnecessarily high costs.
If you don’t keep an eye on this, you could lose control over your software, putting your data and business operations at risk.
Don’t worry—understanding SaaS sprawl and learning how to manage it can help you regain control.
We’ll explore why it happens in your business, what risks it poses to you, and how you can get it under control.
We’ll also learn more about how a SaaS user management might be your solution to taking charge of your cloud apps.
So without further ado, let’s get to it.
What is SaaS sprawl?
Imagine your business has a big digital toolbox.
In this toolbox, you keep all the online tools and apps you use to get work done. These are called SaaS apps (which just means software you use over the internet instead of installing on your computer).
Now, picture this toolbox getting messier and messier over time. You keep adding new tools, but you’re not really keeping track of what’s already in there. This messy situation is what we call “SaaS sprawl.”
Here’s what it might look like in your day-to-day work:
- You can’t find what you need: You know you have a tool to do a certain job, but you can’t remember what it’s called or where to find it.
- You buy things you don’t need: You might end up paying for new tools that do the same thing as ones you already have.
- Different teams use different tools: Your marketing team might use one tool for project management, while your sales team uses another. This can make it hard to work together.
- Some tools gather dust: You might be paying for apps that nobody uses anymore.
- Security becomes tricky: With so many apps, it’s hard to make sure they’re all safe to use and protecting your information properly.
SaaS sprawl happens for a few reasons.
It’s super easy to start using new online tools—often, you just need to sign up with your email. Also, different teams in your company might choose their own tools without checking what others are using.
Think of it like this: If you keep buying new kitchen gadgets without organising your cupboards, soon you won’t be able to find anything, and you’ll probably buy duplicates.
That’s essentially what SaaS sprawl is, but with your business software while doing it at scale.
Managing this sprawl is all about taking a good look at your digital toolbox, figuring out what you really need, and organising everything so it works well together.
It’s about making your work easier, not more complicated!
More on Nexalab’s blog: What is Subscription Lifecycle Management? Definition and Best Practice
SaaS Sprawl vs. Shadow IT: What’s the difference?
When talking about managing your business’s online tools, you might hear two terms: “SaaS sprawl” and “shadow IT.”
While they’re related, they’re not quite the same thing. Let’s break it down.
SaaS sprawl is the bigger picture. It’s when your business ends up with too many cloud apps, whether they’re officially approved or not. It’s like having a cluttered garage full of tools—some you bought on purpose, others that just seemed to appear over time.
Shadow IT, on the other hand, is more specific. It refers to the apps and tools that people in your company use without telling the IT team. It’s like if your employees were bringing their own power tools to work without telling the safety manager.
Here’s where it gets interesting: SaaS sprawl often includes some shadow IT. When you have a lot of apps floating around, chances are some of them snuck in without approval.
But not all sprawl is shadow IT—you might have too many officially approved apps that aren’t being managed well.
Both SaaS sprawl and shadow IT can cause problems:
- They can make your business less secure.
- They might break rules your business needs to follow.
- They can waste money on duplicate tools.
- They can make it hard to manage your business data.
A recent report from JumpCloud found that shadow IT is behind 29% of IT security worries. That’s nearly a third! So that’s why understanding the difference between SaaS sprawl and shadow IT is the first step in getting a handle on your digital toolbox.
Why Does SaaS Sprawl Happen?
Decisions Made All Over the Place
One big reason for SaaS sprawl is that different teams or even individual employees can choose their own software. When there’s no central process for picking apps, it’s hard to keep everything organised.
Not Seeing the Whole Picture
Many businesses struggle to keep track of all the apps they’re using. If you can’t see what tools are being used across your company, it’s nearly impossible to manage them well.
Always Something New
There’s always a shiny new tool promising to make your work “easier” or “faster.”
Sometimes, your team might grab these new apps quickly, hoping to get work done more efficiently. And that’s understandable—who doesn’t want to work smarter?
But here’s the catch: in the rush to try something new, you might not stop to think about how it fits with all the other tools you’re already using.
Before you know it, you’ve added another app to your digital toolbox without really needing it. This is how SaaS sprawl can sneak up on you, even when you’re just trying to do your job better.
Too Easy to Sign Up
New SaaS are designed to be super simple to start using. You can often try them for free or pay very little to get started. No need to wait for IT help—you can usually begin right away in your web browser.
App makers reach out directly to you or your team, showing how their tool can help. While this makes trying new things easy, it can lead to your company having too many different apps.
Before signing up for something new, check if your company already has a similar tool. It might save some hassle later on!
No Clear Rules
Without clear guidelines on how to choose and use software, businesses leave themselves open to SaaS sprawl. When there are no rules, it’s like having a free-for-all where apps multiply unchecked.
Risks and Consequences of SaaS Sprawl
SaaS sprawl can cause serious problems for your business if left unchecked. As your cloud-based apps multiply, you face increasing risks and consequences.
Let’s explore the five main issues you might encounter when your SaaS usage grows out of control.
- Wasted Money: You could be paying for tools you don’t need or use. When apps pile up, you might buy the same type of software more than once or miss out on bulk discounts. This means your hard-earned money goes down the drain.
- Security Weak Spots: More apps mean more ways for hackers to break in. It’s tough to keep all your apps secure when there are so many. If even one app isn’t set up right, your sensitive data could be at risk.
- Breaking the Rules: If your business has to follow strict regulations, too many apps can spell trouble. It’s hard to make sure every single app follows the rules. You might face big fines if you slip up on compliance.
- Slowed-Down Work: When information gets stuck in different apps, your team’s productivity takes a hit. Your employees waste time switching between tools, and your IT staff gets swamped trying to manage it all.
- Messy Data Management: With data spread across many apps, it’s tough to keep track of everything. You might struggle to find important information when you need it, or worse, lose track of sensitive data altogether.
SaaS sprawl isn’t just an IT problem—it can hurt your whole business.
So it is important to keep an eye on your cloud apps and manage them carefully. When it comes to business software, sometimes less really is more. Take control of your apps, and you’ll save money, boost security, and help your team work smarter.
More in Nexalab’s blog: 8 Smart Ways to Manage Your Business Software: A Guide to SaaS Best Practices
Conclusion
SaaS sprawl is a growing challenge that you can’t ignore.
As we’ve seen, having too many uncontrolled cloud apps can make your business less secure, break compliance rules, waste money, and slow down your work.
But don’t worry—with the right approach and tools, you can enjoy the benefits of cloud apps while keeping everything under control.
Octobits by Nexalab is a SaaS management platform designed to help you manage all your cloud apps in one place. It gives you a clear view of all your apps, automates reports, and helps you cut costs. With Octobits, you can take charge of your cloud app situation and make your business run smoother.
Don’t let SaaS sprawl hold your business back.
Contact Nexalab today to see how Octobits can help your app management.
