Taming SaaS Sprawl: Spot Waste, Save Big

Introduction

Ever feel like your organization’s app usage is out of control? You’re not alone. With the average employee’s SaaS spend now hitting around $1,370 a year, the problem of “SaaS sprawl”—or uncontrolled software growth—is a big deal.

Here’s the thing: Gartner research shows that most companies only know about 40% of their apps. That means over half of your SaaS tools are likely flying under the radar. When this happens, it’s easy to start wasting money on redundant apps, forgotten subscriptions, and unused licenses. This waste doesn’t just creep up on you; it compounds over time, taking a huge bite out of your budget.

In this guide, we’ll walk you through the main reasons SaaS waste happens and some straightforward ways to avoid it.

Why Does SaaS Waste Happen?

SaaS waste isn’t something most people notice right away. It slowly grows from a few key issues:

• Lack of Visibility: Imagine having half of your tools hidden in plain sight. This lack of transparency means duplicate apps and unused licenses keep piling up. Getting a full picture of what apps your team is actually using is crucial.
• Unstructured App Purchasing: Have you ever found out someone bought a new tool without checking if you already had something similar? When anyone can buy a new app, it’s easy to end up with duplicates, insecure tools, or just plain overpriced options.
• No Clear App Ownership: An app without an owner is like a car without a driver—it won’t get anywhere useful. Often, apps are purchased and forgotten, but the subscription continues, silently charging away each month.
• Incomplete Employee Offboarding: When employees leave, their SaaS accounts should go too. But without a structured offboarding process, these accounts often slip through the cracks, leading to licenses that you’re still paying for—months or even years after an employee leaves.
• Missing Inventory Management: Managing dozens or even hundreds of apps gets complicated fast. Without a system to track everything, SaaS tools keep getting added, and it becomes impossible to know what’s being used, what isn’t, and what should be removed.

How to Prevent SaaS Waste

Let’s get practical. Here are some effective ways to cut down on SaaS waste before it grows out of control:

Step 1: Get Full Visibility on Your SaaS Stack

A SaaS management solution like AlphaSaaS is an easy way to see all the apps in one place. This tool can track time spent, usage, and satisfaction scores, showing you where there’s waste. Think of it as a “map” of your SaaS tools—without one, you’re flying blind.

Step 2: Build a Solid Purchasing Process

To keep unnecessary apps from sneaking in, make SaaS purchases go through a formal approval process. A typical workflow might look like:

1. Employee submits a purchase request.
2. Supervisor, IT, and Finance teams review the request.
3. Approval is granted if the tool meets security, budget, and compliance checks.

This process may seem a little rigid, but it’s a surefire way to avoid duplicates and ensure apps bring real value.

Step 3: Assign App Owners

Every app needs an owner, someone responsible for tracking its use, training the team, and canceling it if it’s no longer needed. The app owner also gathers feedback to make sure the tool is worth keeping. This one change can save you thousands by preventing inactive apps from hiding in the background.

Step 4: Set Up an Offboarding Plan

When employees leave, a structured offboarding process ensures their app licenses are revoked and accounts closed. Automation can make this easier: a SaaS management tool can trigger these tasks whenever someone exits, avoiding license waste and reducing security risks.

Step 5: Manage Your SaaS Inventory

Consider tracking your SaaS tools in one of two ways:

• Option 1: A spreadsheet that lists each app, its department, the owner, and the plan level.
• Option 2: A dedicated SaaS management platform that automatically updates and alerts you when apps are underused or duplicated.

Manual tracking is possible, but it’s easy to miss something. An automated tool can simplify the process, keeping everything up to date and highlighting areas for savings.

Conclusion: Take Control of SaaS Spending Before It’s Too Late

SaaS waste doesn’t have to be an inevitable part of modern business. With a bit of planning, it’s possible to control, track, and even reduce your software costs. By setting up structured processes for purchasing, app ownership, and offboarding—and by using a tool like AlphaSaaS to see everything in one place—you can stop SaaS waste before it starts.

In a world where SaaS spending keeps climbing, these steps are essential.