The silent budget drain of unused Software-as-a-Service (SaaS) applications has become a critical challenge for IT Service Management (ITSM) teams worldwide. With global SaaS spending projected to reach $300 billion by 2025, organizations face unprecedented levels of waste that directly impacts bottom lines.
Organizations are hemorrhaging millions through unused SaaS subscriptions while IT teams struggle to gain control.
The numbers are staggering – studies reveal up to 53% of SaaS licenses go completely unused within standard measurement periods, while enterprises typically lose 30-40% of their SaaS investments to non-use or underutilization.
This waste translates to significant financial impact. The average enterprise wastes over $21 million annually on unused SaaS, yet most organizations reclaim only 5-15% of identified waste even after discovery.
This inefficiency stems from several factors: shadow IT accounts for approximately 42% of SaaS applications, 65% of apps run without formal approval, and only 30% of organizations maintain effective purchasing and renewal processes.
The complexity of the problem is compounded by the scale of modern SaaS environments. Companies now manage between 106-112 SaaS applications on average, spending approximately $5,000 per employee annually. Large enterprises often face even greater complexity, typically using over 300 SaaS applications across their organizations.
With 85% of SaaS budgets locked into renewals, optimization opportunities become increasingly constrained without proper management.
ITSM teams can address this challenge through systematic approaches:
- Implement dedicated SaaS management platforms that provide visibility across all applications
- Establish automated license reclamation workflows for unused accounts
- Create centralized procurement processes that prevent duplicate subscriptions
- Develop renewal management calendars with 90-day advance notification
- Institute regular license utilization reviews quarterly
Security concerns further emphasize the importance of proper SaaS management. Over 60% of expensed SaaS apps score “Poor” or “Low” on security assessments, while 33% of organizations fail to properly offboard ex-employees within 24 hours – creating significant security vulnerabilities. Data shows that 31% of companies have experienced former employees accessing SaaS assets after their departure, posing additional security risks.
Implementing middleware solutions can significantly enhance SaaS integration and management by providing standardized methods for data exchange and abstracting complex integration details, reducing both security vulnerabilities and operational overhead.
