What Is SaaS Sprawl & How To Manage It

SaaS sprawl is the unchecked growth of software-as-a-service tools across an organization

It happens when an organization uses more SaaS tools than it can track, manage, or secure.

Think overlapping tools, unused licenses, rogue sign-ups, and teams adopting software without IT’s knowledge.

At first, it looks like flexibility. Over time, it becomes a mess.

Expensive, insecure, and hard to govern.

But what is causing this mayhem?

Causes of SaaS Sprawl

SaaS sprawl does not happen overnight.

It builds up due to a mix of factors:

Decentralized purchasing

Teams buy tools on company cards without going through procurement or IT.

Low barriers to entry

Anyone with an email address and a budget can start a free trial or sign up.

Rapid scaling

As orgs grow or hire fast, software usage expands without a system in place.

Lack of visibility

Most IT teams can’t see what SaaS apps are in use until something breaks or a security issue surfaces.

SaaS Sprawl challenges

The more SaaS stacks up, the harder it is to manage.

Here is what gets worse:

Cost waste

Orgs pay for tools they no longer use or don’t need, often across multiple teams.

Security risk

Shadow IT leads to unsanctioned apps storing sensitive data, creating attack surfaces IT cannot monitor.

Compliance gaps

When tools are not centrally managed, audits become nightmares.

Operational inefficiencies

Teams use different tools for the same job, hurting collaboration and data consistency.

Effects of SaaS Sprawl

The real impact?

It is not just annoying or worrisome, SaaS sprawl is costly and risky for these four reasons:

1.) Budgets balloon with redundant or underused tools.

2.) IT loses control, making it harder to enforce policies or respond to incidents.

3.) Onboarding/off-boarding breaks down, leaving former employees with access they shouldn’t have.

4.) Decision-making stalls, as data gets fragmented across disconnected tools.

How to Manage SaaS Sprawl

The best way to manage SaaS sprawl is by using a SaaS security like Perimeters.io.

Taming SaaS sprawl does not mean locking everything down.

It means gaining visibility, control, and automation.

Perimeters continuously scans your environment to detect every SaaS app in use - authorized or not.

It gives IT and procurement a real-time view of:

  • What tools are active
  • Who is using them
  • How much they cost
  • Where your risks lie

From there, Perimeters helps you:

  • Eliminate redundant licenses
  • Standardize app usage across teams
  • Shut down shadow IT
  • Automate access control and lifecycle management
  • Stay audit-ready without the chaos

The result?

Less waste. Fewer risks. More control.

SaaS stays flexible, but on your terms.

Book a demo to see the Perimeters difference.

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