Why not? SaaS applications are easy to activate, often coming with free editions or low-cost versions that accomplish a specialized task. Having dozens (or more) apps on a personal smartphone is a common practice. When an application is no longer useful, all you have to do is stop using it.<\/p>\n\n\n\n
But from your<\/em> perspective, the convenience of specialized, third-party SaaS applications comes with a challenge: SaaS sprawl. With so many apps in use, it\u2019s easy for things to get out of hand. This sprawl leads to inefficiencies, security risks, and higher costs. <\/p>\n\n\n\n Whether you\u2019re an IT admin feeling the strain of an overly cluttered digital desk, or a business leader looking to optimize resources, we\u2019ve got the perfect prescription to your SaaS sprawl problem. Let\u2019s get started.<\/p>\n\n\n\n SaaS sprawl is the uncontrolled expansion of SaaS applications used across an organization. As companies adopt multiple SaaS solutions to address various business needs, the number of apps used across different departments and teams grows. More often than not, IT teams remain unaware of most SaaS tools employees sign up with their business emails \u2014 a practice commonly known as shadow IT<\/a>. Ultimately, this sprawl leads to blindspots, higher costs, and data management issues. <\/p>\n\n\n\n SaaS sprawl typically occurs when:<\/p>\n\n\n\n In the new digital economy, the reality is that most organizations will support technology devices, software and services outside the ownership or control of IT organizations. The only solution to this problem is to improve the ongoing collaboration and communication between IT and the business so that the possibility of a surprise is minimized.<\/p>\nDonna Fitzgerald, research vice president, Gartner<\/a><\/cite><\/blockquote>\n\n\n\n To give an example, let\u2019s say a company has clear policies around AI tools, asking employees to never use them. A tech-savvy junior software engineer who loves exploring new technologies comes across a new AI tool that can help him code faster. He goes ahead and signs up for this new app, entering critical company codes to test it out. The IT department has no idea of this situation as they have no SaaS management solution in place.<\/p>\n\n\n\n This new AI app gets hacked and all the data he entered there gets leaked. Now, the company faces malicious threats, financial and reputational damage, and risks their long term viability. <\/p>\n\n\n\n The end.<\/p>\n\n\n\n That\u2019s just one of the simplest examples. There are hundreds of SaaS apps for any work-related problem you can imagine. With so many departments and employees, it\u2019s almost certain that things are doomed to get sprawled and get out of control.<\/p>\n\n\n\n Between <\/em>30% and 40%<\/em><\/a> of IT expenditures in large enterprises are due to <\/em>Shadow IT<\/em><\/a>. Everest Group\u2019s research indicates this figure could be 50% or higher.<\/em><\/p>\n\n\n\n As organizations increasingly adopt SaaS solutions, two significant issues emerge: SaaS sprawl and Shadow IT. Though related, they are distinct challenges.<\/p>\n\n\n\n SaaS sprawl<\/em><\/strong> refers to the uncontrolled proliferation of SaaS applications within an organization.<\/p>\n\n\n\n Shadow IT<\/em><\/strong><\/a> involves the use of technology, including SaaS applications, without the knowledge or approval of the IT department. Employees may use unapproved tools to meet their needs, bypassing standard protocols and introducing security risks and data silos.<\/p>\n\n\n\n According to JumpCloud\u2019s SME IT Trends Report Q3 2024<\/a>, Shadow IT accounts for 29%<\/strong> of IT security concerns.<\/p>\n<\/blockquote>\n\n\n\n While SaaS sprawl deals with managing a known\/unknown but sprawling collection of applications, Shadow IT focuses on identifying and controlling unauthorized tools. Note that one can\u2019t be managed without managing the other.<\/p>\n\n\n\n Understanding the root causes of SaaS sprawl is essential for developing effective management strategies. <\/p>\n\n\n\n Without a centralized system to track all the SaaS applications in use, IT departments can lose sight of what they have. This lack of visibility makes it difficult to manage and optimize the SaaS ecosystem effectively, and it ultimately leads to duplicative purchases and underutilized resources. <\/p>\n\n\n\n When different departments independently choose their tools, the IT architecture becomes fragmented. This decentralization results in redundant apps, overlapping features, and increased complexity.<\/p>\n\n\n\n A culture that promotes autonomy and quick problem-solving can inadvertently encourage SaaS sprawl. When employees are encouraged to find their own solutions, they may turn to new SaaS tools without considering the broader impact on the organization.<\/p>\n\n\n\n BYOD policies<\/a> can lead to SaaS sprawl by making it easier for employees to use unapproved apps on their personal devices. With no company-wide software tracking their devices, this practice bypassess IT controls and adds to the number of unmanaged applications.<\/p>\n\n\n\n IT asset management<\/a> (ITAM) combats SaaS sprawl by tracking all an organization\u2019s This essentially creates a catalog of approved applications and tools that employees can reference. Without such a catalog, employees are more likely to seek out and subscribe to new tools independently, which contributes to sprawl.\u00a0<\/p>\n\n\n\n \n Casting IT Into the Shadows <\/p>\n \n What you can\u2019t see CAN hurt you when it comes to shadow IT. Learn six key shadow IT risks and how to address them proactively. <\/p>\n <\/div>\n 60%<\/em><\/a> of SME IT professionals report security as the biggest challenge, followed distantly by new services and application rollouts (42%) and the cost of remote work solutions (41%).<\/em><\/p>\n\n\n\n Unmanaged and unapproved apps can introduce significant security vulnerabilities. IT departments often struggle to enforce security policies and protect sensitive data when apps are used without their oversight. This can lead to:<\/p>\n\n\n\n SaaS sprawl leads to redundant apps with overlapping functionalities, resulting in: <\/p>\n\n\n\n Ensuring that an organization\u2019s SaaS apps align with their strategic goals is critical. Executive stakeholders need to have a clear understanding of how each tool contributes to the company\u2019s objectives.<\/p>\n\n\n\n Another critical area when it comes to SaaS sprawl is risk management. Uncontrolled SaaS sprawl can expose the company to various risks, including data breaches, compliance violations, and operational disruptions. Executives must prioritize risk mitigation to protect the company’s interests.<\/p>\n\n\n\n Informed decision-making requires accurate data about the organization\u2019s SaaS usage. Executives need visibility into the SaaS landscape to make strategic decisions about technology investments and resource allocation. <\/p>\n\n\n\n You can\u2019t secure what you cannot see. Start the SaaS sprawl management process by discovering and listing every SaaS tool used across your organization. Utilize automated tools like JumpCloud<\/a> to identify all the applications in use, track subscription details, and monitor user activity. This continuous discovery process helps maintain an up-to-date inventory, minimizing the blindspots in your SaaS landscape.<\/p>\n\n\n\n Centralizing the management of SaaS applications can significantly reduce redundancy and improve employee productivity. Implement a centralized platform where all approved SaaS apps are listed. This approach allows IT and procurement teams to regain control while making it easier for employees to find sanctioned apps in one place without having to ask IT teams.<\/p>\n\n\n\n Educating employees about the implications of SaaS sprawl and the importance of adhering to approved tools is vital. Conduct training sessions to inform staff about the risks associated with unauthorized applications and the benefits of using standardized solutions. Having a single source of truth for which apps are authorized is critical to empowering employees to make informed decisions when selecting SaaS tools. <\/p>\n\n\n\n Establish clear policies for SaaS adoption to ensure consistency and compliance. Define criteria for selecting new SaaS applications, outline the approval process, and set usage policies. These guidelines should be the north star for all teams. They\u2019ll help standardize SaaS procurement and usage, minimize the risk of sprawl, and ensure alignment with organizational objectives.<\/p>\n\n\n\n Remember that new employees are often unaware of your standardized saaS usage policies. Similarly, SaaS accounts left open by departing employees can become entry points for threat actors, leading to security breaches, wasted budgets, and data sprawl.<\/p>\n\n\n\n To avoid these risks, make sure that new employees are quickly provisioned with the necessary SaaS tools. Similarly, implement thorough offboarding procedures to revoke access and manage licenses when employees leave the organization to prevent unauthorized usage and potential security risks.<\/p>\n\n\n\n Also read: <\/em>IT Onboarding: A Comprehensive Guide for IT Admins<\/em><\/a><\/p>\n\n\n\nWhat Is SaaS Sprawl?<\/h2>\n\n\n\n
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SaaS Sprawl and Shadow IT<\/h2>\n\n\n\n
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What Are the Causes of SaaS Sprawl?<\/h2>\n\n\n\n
Lack of Visibility<\/h3>\n\n\n\n
Decentralized SaaS Procurement and Decision-Making<\/h3>\n\n\n\n
Company Culture<\/h3>\n\n\n\n
Bring Your Own Device (BYOD) Policies<\/h3>\n\n\n\n
Lack of IT Asset Management<\/h3>\n\n\n\n
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\n <\/div>\n Challenges of Managing SaaS Sprawl<\/h2>\n\n\n\n
IT Department<\/h3>\n\n\n\n
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Finance Department<\/h3>\n\n\n\n
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Executive Company Stakeholders<\/h3>\n\n\n\n
Best Practices for Managing SaaS Sprawl<\/h2>\n\n\n\n
1. Identify All SaaS Usage<\/h3>\n\n\n\n
2. Centralize SaaS Applications<\/h3>\n\n\n\n
3. Educate Employees<\/h3>\n\n\n\n
4. Implement SaaS Adoption Guidelines & Policies<\/h3>\n\n\n\n
5. Improve Onboarding and Offboarding<\/h3>\n\n\n\n
6. Conduct SaaS Audits<\/h3>\n\n\n\n