Stopping the proliferation of SaaS
Posted: Sat Dec 21, 2024 3:22 am
To create and publish the article you’re reading, we had to use at least five different SaaS solutions. And that’s just for one article. Recording a podcast or hosting an online webinar? These tasks can require up to 15 different software tools, all working together for a single episode or event.
And that's just in the marketing field.
Now, don't get us wrong—these SaaS tools are incredibly helpful. That's why we rely on them.
Each is excellent at its specific job, solving one particular problem we encounter. We use one platform to plan our week collaboratively, another to schedule everything, and yet another to integrate the first two. Before you know it, we're juggling countless tools.
Well, not countless, but limited. On average, companies use about 150 tools , but in reality, that number often climbs to 300 for large organizations. This comes at a cost: companies spend between $1,000 and $3,500 per year per employee on SaaS applications.
The SaaS market reflects this incredible growth. According to Statista , its global value is expected to reach $317.55 billion by 2024, with more than 30,000 unique solutions available today.
How did it all start?
The rise of cloud software has made it much easier oil and gas email list to develop point solutions to individual problems. Startups found success by perfecting a specific niche, a strategy that allowed them to break into the market—and for a long time, this approach worked. But today, it has gone too far.
Enterprises have begun rapidly adopting these point solutions, leading to a phenomenon known as “SaaS sprawl.” This phenomenon occurs when organizations lose control of the myriad tools they have implemented, leading to skyrocketing costs, increased security risks, and operational inefficiencies.
The proliferation of SaaS
Difficulties of having niche SaaS for everything
The proliferation of SaaS isn't just a minor inconvenience, it's a significant challenge that can prevent businesses from reaching their full potential.
Increased costs
This point is obvious given the rise in subscription costs. When departments independently adopt multiple SaaS tools, total costs can become unmanageable. Unused licenses, overlapping features, and hidden “shadow IT” expenses unnecessarily inflate budgets. Take our marketing department, for example: we subscribe to about 37 SaaS tools, and I’m not sure we’re using them all effectively, or even getting value for our money.
And that's just in the marketing field.
Now, don't get us wrong—these SaaS tools are incredibly helpful. That's why we rely on them.
Each is excellent at its specific job, solving one particular problem we encounter. We use one platform to plan our week collaboratively, another to schedule everything, and yet another to integrate the first two. Before you know it, we're juggling countless tools. Well, not countless, but limited. On average, companies use about 150 tools , but in reality, that number often climbs to 300 for large organizations. This comes at a cost: companies spend between $1,000 and $3,500 per year per employee on SaaS applications.
The SaaS market reflects this incredible growth. According to Statista , its global value is expected to reach $317.55 billion by 2024, with more than 30,000 unique solutions available today.
How did it all start?
The rise of cloud software has made it much easier oil and gas email list to develop point solutions to individual problems. Startups found success by perfecting a specific niche, a strategy that allowed them to break into the market—and for a long time, this approach worked. But today, it has gone too far.
Enterprises have begun rapidly adopting these point solutions, leading to a phenomenon known as “SaaS sprawl.” This phenomenon occurs when organizations lose control of the myriad tools they have implemented, leading to skyrocketing costs, increased security risks, and operational inefficiencies.
The proliferation of SaaS
Difficulties of having niche SaaS for everything
The proliferation of SaaS isn't just a minor inconvenience, it's a significant challenge that can prevent businesses from reaching their full potential.
Increased costs
This point is obvious given the rise in subscription costs. When departments independently adopt multiple SaaS tools, total costs can become unmanageable. Unused licenses, overlapping features, and hidden “shadow IT” expenses unnecessarily inflate budgets. Take our marketing department, for example: we subscribe to about 37 SaaS tools, and I’m not sure we’re using them all effectively, or even getting value for our money.