Why SaaS sprawl is a risk for your company?

Contract management
January 26, 2023
Why SaaS sprawl is a risk for your company?

What are the risks of multiplying SaaS solutions for your company?

More and more SaaS software have been created in recent years, driven by the growing digitalization of companies. These tools have become indispensable in our daily lives and allow us to save time and energy on low value-added tasks. But sometimes, given the number of existing solutions and the temptation to try them out, they can end up being a source of wasted time and significant expenses.

We explain in this article the dangers of multiplying SaaS in your company and how to avoid it.

The risks of SaaS sprawling

Great online solutions appear every day to make your daily life easier and it is always tempting to sign up to try them out. But multiplying SaaS in your company can present several risks.

Increased costs

Obviously, the first risk is to multiply costs and end up with a heavy bill every month. On a monthly basis, the cost may not seem significant, but on a yearly basis, the figures are immediately more significant.

Let's imagine that you use 5 softwares at 50€ per month, that represents a global bill of 3000€ every year. Not negligible!

On top of that, many SaaS have progressive rates and offer more features or number of users for an additional cost. It is then possible without realizing it to have a bill increasingly important if you do not pay attention when your needs grow.

Integration issues

Then, multiplying the software means risking not being able to integrate them. Nowadays, many programs have APIs to facilitate the exchange of your data. But this is not always the case and the fact of multiplying SaaS makes integration between the different systems difficult.

In any case, having to connect a large number of solutions together leads to inefficiencies in their configuration and makes your organization more complex.

Security risks

Data security is a major issue for software publishers. Multiplying the number of SaaS solutions means increasing the risks related to a failure in the processing of your data. Managing security for a large number of software applications in a company can be more complex and require more internal resources.

Focus on the RGPD: SaaS software editors collect and process data on a daily basis. For those concerning people on the European territory, the editors are in the obligation to be in conformity with the General Regulation on the Data Protection (RGPD). A precise framework is also mandatory for data transferred outside the EU.

The complexity of managing access

Finally, one of the last risks when multiplying SaaS is to make access management complex. With a large number of software applications and different accesses for each one, it is sometimes complicated to know who uses which tool and why. This can lead to confusion about the real purpose of the software.

Multiplying SaaS can therefore run counter to its advantages and present certain risks such as increased costs and security risks.

saas spend calculator

How to avoid the multiplication of SaaS?

As we have just seen, it is essential to avoid multiplying software in your company in order to avoid losing money and time. Here are some good practices for that.

Define your needs

The first thing you need to do to make sure you are using the right software is to determine exactly what your needs. SaaS offers many features and the ability to have multiple users on their solution. It is according to this that the prices generally increase.

You can then proceed in 2 steps: (or find more info here in our previous blog article)

  • Define the departments that need a software to perform their tasks in the best way and why: a CRM for your sales, an accounting and financial management tool for your financial department...
  • Then define the functionalities they will need and the number of users required: 3 users for example for your accounting software with the obligation to have a financial management module connected to facilitate your reporting and forecasting.

Determining your needs in advance will allow you to choose your software in the best possible way and quickly eliminate those that are not adapted.

Selecting all-in-one software

There are two types of SaaS on the market:

  • SaaS that offer very niche solutions and focus on performing a few tasks but in very advanced ways.
  • SaaS, generally leaders in their market, which offer a large number of features and cover many issues.

If you do not want to multiply subscriptions, it is important to learn about the differences in functionality between these two types of solutions. A SaaS that integrates many features will allow you to manage your processes and your users more easily in one place. All this with a single subscription.

Review your subscriptions frequently

Finally, make sure you regularly review your needs and the value of using certain software (or features).

If your company grows, your needs may change and some solutions may no longer be appropriate. It is then important to regularly inquire about the existing solutions on the market and to review according to your needs the functionalities necessary to your activity as well as the number of users.


Multiplying SaaS in your company carries risks: not controlling your budget, making data sharing more complex, increasing your security risks or not managing all accesses. To do this, remember to determine your needs before making your choice, find out about complete tools and remember to review your subscriptions regularly.

Obviously, all this takes time and it is sometimes complicated to find your way among all the solutions proposed. At Welii, we help you optimize your SaaS management and negotiate your prices. You manage your growth, we manage your SaaS! You can book your demo here.


Get answers to your burning questions
Explore our FAQ!

Is it too early to work with Welii since I don't utilize many SaaS solutions?


Shadow IT is present for a company of any size and we always identify 3x more tools than our customers thought. If you spend less than $400k annually on SaaS tools, we'll identify fewer saving opportunities than a client who spends millions, but we'll help you quickly implement a data-driven buying strategy to prevent this wasteful situation from occurring and keep you focused on your business.

Is my data secure when using Welii?


The security of your data is our primary concern. Which is why we have taken appropriate measures to protect your business.

Can I add people from different teams on the same platform?


You are free to add any budget owners or anyone involved in SaaS purchasing to streamline your procurement buying process at no additional cost to our platform.

Can I manage people onboarding and offboarding?


Managing users and identities is a separate business that we don’t do. However, to bring you value and help you with this process, we have partnered with industry leaders like Okta and Auth0 so that we can help you in your Zero Trust Identity process.

Can I use filters to analyse my SaaS inventory?


We have developed a simple and intuitive solution allowing you to analyze all your SaaS inventory data through dashboard and dynamic list views based on search criteria and filters.

I use Spendesk to pay my SaaS tools. What more will you bring us?


Spendesk is an enterprise expense management solution that allows all employees to pay for SaaS tools. Welii will provide you with insight and support to help you optimize your spending, add leverage to your negotiations, and remove the headaches associated with SaaS purchasing.