Take Control of Your Cloud Applications 
Taming SaaS Sprawl

SaaS applications are everywhere. From project management tools to note-taking apps, these cloud-based solutions have revolutionized the way businesses operate. They’re fast, scalable, and cost-efficient, making enterprise-level tools accessible to organizations of all sizes. But with great power can come great chaos.

If you’ve ever felt overwhelmed by the sheer number of SaaS applications in your organization, you’re not alone. This phenomenon, known as SaaS sprawl, is becoming a major challenge for businesses worldwide.

In a recent webinar titled Taming the SaaS Chaos, experts from SafePaaS and Altum Strategy Group explored the growing problem of SaaS sprawl and shared actionable strategies to help organizations regain control.

If you’re struggling with shadow IT, redundant licenses, or security gaps in your SaaS environment, this blog is for you.

What Is SaaS Sprawl?

SaaS sprawl refers to the unchecked proliferation of cloud-based applications within an organization. It’s not just about large-scale enterprise tools like ERPs; it’s also the smaller, point-to-point solutions—note-taking apps, team collaboration tools, or even niche AI platforms—that quietly accumulate over time.

The problem?

Many of these tools are adopted without IT oversight, leading to a lack of visibility into who’s using what, how much it costs, and where sensitive data is stored. As Matt Gantner from Altum Strategy Group explains,

“It’s really not just about the SaaS you’re
using—it’s how you’re using it and managing it.”

Without proper governance, SaaS sprawl can lead to significant risks for your business.

The Risks of Ignoring SaaS Sprawl

Let’s break down why SaaS sprawl is more than just an inconvenience:

Security Risks: With so many tools in play, it’s easy to lose track of user access. Dormant accounts, over-provisioned permissions, and shadow IT create vulnerabilities that hackers can exploit. As Hennie Vermeulen from SafePaaS pointed out, “If a hacker gains access through an over-provisioned account, they could do far more damage than if permissions were limited.”

Compliance Challenges: Many SaaS vendors operate globally, which means your data could be stored anywhere—from Europe to Asia—making compliance with regional privacy laws like GDPR or CCPA a nightmare. As Vermeulen noted, “Once you upload data to some of these platforms, you may not even know where it’s being processed.”

Cost Inefficiencies: According to Dan Miller from Altum Strategy Group, research shows that 25% of SaaS licenses in enterprises go unused. On top of that, companies often pay for multiple tools that perform the same function—think three different project management apps or redundant training platforms.

Operational Inefficiencies: Without centralized controls or standardization across tools, IT teams struggle to manage integrations and ensure smooth workflows. This leads to wasted time and resources.

How to Tame the Chaos

The good news? You can regain control of your SaaS environment with a few strategic steps:

Establish a Governance Framework
Create clear policies for adopting and using SaaS tools. Maintain a centralized inventory of all applications in use, so you always know what’s in your tech stack.

Implement Access Governance Best Practices
Use the principle of least privilege—only grant users access to what they absolutely need. Policy-based access control can help enforce granular permissions across applications.

Educate Your Team
Employees often adopt unauthorized tools because they don’t know what’s available or understand the risks. Train your team on approved applications and make it easy for them to request new ones through proper channels.

Automate Where Possible
Solutions like SafePaaS can automate provisioning and de-provisioning processes while providing visibility into user access and compliance gaps.

Conduct Regular Audits
Perform quarterly or semi-annual reviews of your SaaS portfolio to identify redundant licenses or underutilized tools. This not only saves money but also reduces complexity.

A Real-World Example

To illustrate the real-world impact of SaaS sprawl and the importance of effective access governance, let's examine a case study from a global enterprise that recently tackled these challenges head-on.

A global enterprise operating in over 100 countries faced significant challenges in managing its IT control environment during a transition from on-premise systems to cloud-based solutions. The organization's application landscape included hundreds of applications supporting diverse business functions but lacked visibility into user access and privilege management. Key issues included inconsistent user provisioning processes, difficulties in access certification, and a fragmented control environment.

This case study demonstrates the complexities organizations face when managing SaaS sprawl across a global enterprise. By implementing a comprehensive solution like SafePaaS, the organization was able to address critical challenges in visibility, access management, and compliance. This real-world example stresses the importance of proactively managing SaaS environments and implementing robust access governance solutions. It shows that with the right solutions and strategies, you can successfully navigate the challenges of SaaS sprawl while
maintaining security, efficiency, and compliance across your entire IT landscape.

The Cost of Doing Nothing

If you think ignoring SaaS sprawl isn’t a big deal, think again. According to IBM research, the average cost of a data breach is now $4.45 million—and that number jumps to $5 million for breaches involving public cloud environments. Beyond financial losses, there’s also reputational damage and lost trust from customers and partners.

Managing SaaS sprawl doesn't mean stifling innovation or agility—it means striking a balance between flexibility and control. By implementing strong governance practices and leveraging automation solutions like SafePaaS, you can tame the chaos while enabling your teams to work smarter and more efficiently.

Moreover, partnering with specialized risk consultants, such as Altum Strategy Group, can provide valuable insights and tailored strategies to effectively manage SaaS-related risks. The synergy between SafePaaS's automation capabilities and Altum's expert guidance creates a powerful approach to SaaS management. This combination not only helps control SaaS sprawl but also optimizes the SaaS stack, enhancing security, ensuring compliance, and boosting operational efficiency.

By leveraging these complementary resources, you can navigate the complex SaaS landscape with confidence, maximizing the benefits of cloud-based applications while minimizing associated risks.

Don’t wait until a data breach or control failure forces your hand. Start taking proactive steps today to optimize your SaaS environment and protect your business from unnecessary risks and costs. 

Are you ready to get started? Let’s tame that chaos!