Both small and large companies can now add work tools in just a few minutes: project applications for marketing teams, CRM for sales, chatbots for customer service, analytics dashboards, cloud storage, and various AI tools. The problem is, each new application brings accounts, data, access permissions, costs, and new work habits.
When the number becomes unmanageable, companies experience SaaS sprawl—a condition where too many software-as-a-service applications are used simultaneously without proper management. The impact is not just inflated monthly bills. Teams can also spend time searching for information, manually transferring data, or guessing which application holds the latest information.
According to the Okta report Businesses at Work 2025, organizations continue to rely on many applications to carry out work, while the need for security and compliance tools is also increasing. Okta tracks trends in business and security application usage based on anonymized customer data. ([okta.com](https://www.okta.com/reports/businesses-at-work-archive/businesses-at-work-2025/?utm_source=openai))
Why having many applications doesn't automatically mean more productivity?
Each application is usually purchased to solve a specific problem. CRM is chosen to make sales more organized. Project management applications are used to make work easier to monitor. Automation tools are used so that repetitive tasks are not done manually.
The problem arises when decisions are made by teams without considering the overall workflow. The sales team may store customer data in CRM, while the customer success team uses spreadsheets. The finance team has its own billing system. Eventually, the same information appears in three or four places in different formats.
Imagine a restaurant that has a kitchen, cashier, and warehouse, but each uses its own order list. Each section may feel that its work is going well. However, when the number of orders increases, coordination errors begin to emerge.
This is why applications that seem to help locally can add friction overall. Employees have to switch tabs, remember multiple login procedures, and perform administrative tasks that should be eliminated.
Signs a company is starting to experience SaaS sprawl
SaaS sprawl does not always appear as a major problem at first. Some signs may feel like minor annoyances that recur every day.
- There are several applications with nearly identical functions, such as three tools for file sharing or two applications for project management.
- Employees create new accounts using personal cards because the internal purchasing process is too slow.
- Customer data, documents, or work statuses are scattered in many places.
- Teams are unsure who still has access to certain applications.
- Software bills continue even though users or projects are no longer active.
- Work processes rely on manual spreadsheet exports and imports.
- When an employee leaves, the company struggles to find all the accounts and data they ever used.
Security issues also increase. Okta highlights that the proliferation of applications and third-party access can make organizational data harder to control. In one of its analyses, companies on average have hundreds of applications integrated through a specific identity platform. ([sec.okta.com](https://sec.okta.com/articles/controllingoauthsprawl/?utm_source=openai))
Don't just delete applications
A common mistake in tidying up software is to cut subscriptions based solely on price. In fact, applications that seem expensive may hold important processes, while cheap tools can pose significant risks by accessing sensitive data.
The first step is to create an inventory. Record the application name, internal owner, main function, number of users, monthly or annual costs, types of data processed, and integrations used. If information is not available, that itself is a sign that application management is not mature enough.
After that, group applications by function. For example:
- Communication and collaboration.
- Sales and customer relations.
- Finance and payments.
- Project management.
- Document storage and sharing.
- Analytics, automation, and AI.
- Security and identity management.
The goal is not to force the company to use one application for everything. Each category can have more than one tool if the needs are indeed different. What’s important is that these decisions are conscious and have clear reasons.
Use a simple scoring system to determine priorities
Companies do not have to immediately purchase an expensive SaaS management platform. A simple spreadsheet is sufficient for the initial stage. Assign a score from one to five for each application based on several factors:
- Business value: how important is the application to revenue or operations.
- Usage level: is it used daily or only occasionally.
- Function overlap: are there other applications that perform similar functions.
- Data risk: what type of information can the application access.
- Exit cost: how difficult is it to move data and processes if the application is discontinued.
Applications with low business value, low usage, high function overlap, and ongoing costs should be examined first. Conversely, important applications with many integrations should not be discontinued before there is a migration and testing plan.
Establish purchasing rules that do not hinder teams
Overly strict controls can push employees to use applications secretly. Therefore, purchasing rules should be simple and quick.
For example, every new application request should answer four questions: what problem is being solved, is that function already available in existing applications, what data will be processed, and who is responsible for managing it.
For low-risk applications, approval can be completed in one day. For applications that access customer data, financial data, or production systems, conduct a more thorough security and privacy check.
Companies should also provide an internal catalog of approved applications. This way, employees do not always have to start from an internet search when they need a new tool.
Connect applications based on workflow, not trends
Integration is not the end goal. Connecting too many applications can also create new problems: duplicate data, excessive notifications, and errors that spread automatically.
Before creating integrations, outline the workflow from start to finish. For example, when a prospect fills out a form, the data enters the CRM, is forwarded to the sales team, and then a follow-up task is created. If one stage does not require a particular application, do not add it just because a connector is available.
For important processes, designate one system as the primary data source. Other applications may receive copies or summaries, but major changes should be made in a clear location. This principle helps prevent data discrepancies between teams.
What does this mean for businesses?
Managing SaaS sprawl is not just a cost-saving project. It is about tidying up how the company operates. When data is easier to find, access permissions are clearer, and the applications in use are indeed relevant, employees can spend more time on value-generating work.
However, these benefits do not come just from deleting a few subscriptions. Companies need to combine application inventories, purchasing rules, access management, and periodic evaluations.
Start with one work unit. Map the applications in use, choose one process that generates the most manual work, and then measure the changes. For example, how long does it take to find customer data before and after tidying up? How many applications are actually used each week? How many accounts are still active even though their owners no longer work?
The answers to these questions are more useful than simply counting the number of applications. The ultimate goal is not to have as little software as possible, but to have a work system that is simple enough to understand and robust enough to support business growth.
Sources & further reading
– Rio Yotto @rioyotto