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In today’s rapidly evolving digital landscape, software as a service (SaaS) has revolutionised how businesses operate. By offering easy-to-access, subscription-based software solutions, SaaS vendors have empowered employees at all levels of an organisation to adopt new tools and applications with the simple swipe of a credit card. But with this convenience comes a significant challenge: up to 70% of the applications used within organisations are unknown to IT departments.
How Did We Get Here?
The rise of SaaS has made it easier than ever for non-technical users to purchase and deploy applications. This democratisation of software has driven innovation, enabling teams to quickly adapt to new challenges and seize opportunities. However, the same flexibility that has fuelled growth is also contributing to a new kind of chaos. With little to no oversight, employees are free to choose the tools they believe will help them perform better, often without considering the broader implications for the organisation.
This situation leads to a phenomenon known as “shadow IT,” where software and applications are adopted without formal approval or vetting by the IT department. While this might not seem like an immediate concern, it’s important to understand the potential pitfalls that can arise from this unchecked proliferation of SaaS solutions.
The Problem with Proliferation
One of the most obvious issues with the unchecked adoption of SaaS applications is redundancy. Without a centralised strategy for managing software, organisations can quickly find themselves paying for multiple applications that serve the same purpose. For instance, a company might have different departments using various project management tools, each of which offers similar features but comes with its own subscription costs. Over time, these costs add up, resulting in a significant financial drain that could have been avoided with proper oversight.
Beyond the financial implications, this redundancy can lead to inefficiencies within the organisation. Teams may struggle to collaborate effectively if they’re using different tools, and valuable data might be siloed within disparate systems. Instead of streamlining operations, the uncontrolled growth of SaaS applications can create new obstacles to productivity and collaboration.
The Hidden Costs
Think about how many subscriptions you have at home—Netflix, Amazon Prime, Spotify. Now, imagine this scenario on a much larger scale within your organisation. Just as you might lose track of which subscriptions you’re paying for at home, businesses can easily overlook the true cost of their SaaS applications. This oversight can lead to “subscription sprawl,” where companies are paying for features they don’t use or even need. And just like forgotten streaming subscriptions, these costs can quickly spiral out of control.
In addition to financial waste, there’s also the question of security and compliance. When applications are adopted without the knowledge of the IT department, they are not subject to the same rigorous vetting and monitoring as officially sanctioned tools. This lack of oversight can create vulnerabilities that leave the organisation exposed to security breaches, data leaks, and compliance violations.
The Bigger Problem: Governance and Risk Management
The rapid adoption of SaaS has outpaced the evolution of traditional IT governance mechanisms. Organisations that have failed to update their policies and procedures to account for the unique challenges posed by SaaS are at risk of falling behind in their ability to manage risk and ensure compliance.
Without proper governance, it becomes nearly impossible to maintain a clear picture of which applications are being used, who has access to them, and how they’re being utilised. This lack of visibility can lead to a host of problems, including data breaches, unauthorised access to sensitive information, and regulatory non-compliance.
What Can Be Done?
To address these challenges, organisations must take a proactive approach to SaaS management. This begins with developing a comprehensive inventory of all applications in use across the company, including those that have been adopted outside of the IT department’s purview. From there, IT leaders can work to eliminate redundancies, consolidate subscriptions, and ensure that all tools align with the organisation’s broader goals and objectives.
Additionally, organisations must evolve their governance strategies to account for the unique challenges posed by SaaS. This includes implementing stricter controls over software purchases, ensuring that all applications undergo a thorough vetting process, and continuously monitoring the usage and security of these tools.
Conclusion
The convenience and accessibility of SaaS have driven remarkable innovation and growth within organisations. However, the unchecked proliferation of these tools can lead to significant financial, operational, and security challenges. By taking a proactive approach to SaaS management and updating governance practices, organisations can reap the benefits of these powerful tools while minimising risk and ensuring long-term success.
Contact evince Consulting today to see how we can help you.
