Tackling the Digital Mess

The other day, a technician came over to help me with an unresponsive computer. After bringing it back to life, he started rifling through my installed programs. “What’s this one for?” he asked. “And this one?” I stared at him blankly. I had no idea. Some programs had been sitting there for months—possibly years—gathering dust like forgotten “tchotchkes” on a desk. (Let’s just say my digital desktop wouldn’t make Marie Kondo proud.)

The real eye-opener came when I reviewed my credit card transactions. Turns out, some of these digital knick-knacks weren’t free. I was paying for subscriptions to things I didn’t even realize I wasn’t using. Not fun!

Now, let’s take this scenario to a grander scale—enterprise-level SaaS clutter.  Saas sprawl is the new buzzword in the tech world, and it’s more than just a fancy term for “a big mess.” SaaS sprawl is messy. It’s expensive. But it’s also downright risky. 

Just like I had to face the truth about my digital clutter, businesses need to confront their tech stacks. Consolidating and auditing your SaaS usage isn’t just about saving a few bucks (though that’s nice). It’s about streamlining operations, improving security, and ensuring that the tools you pay for are the ones you actually need—and use. 

What is SaaS Sprawl?

SaaS sprawl refers to the unchecked growth of SaaS applications within an organization, often resulting from decentralized procurement and use. Employees can easily sign up for SaaS tools with just an email address, bypassing IT or compliance teams. While convenient, this creates significant Saas risks in terms of visibility, compliance, and security.

The Unseen Risks of SaaS and AI Tool Adoption

Security Blind Spots

According to Grip Security’s recent report, 90% of SaaS applications and 91% of AI tools remain unmanaged, leaving organizations vulnerable. Every unsanctioned app or tool increases the attack surface, often lacking the robust security assessments applied to official IT systems.

• Provisioning Problems: A startling 73% of provisioned SaaS licenses remain unused, creating unnecessary costs and open accounts that could be exploited.
• Misconfigurations: Weak access controls and authentication policies can lead to Saas data breaches, especially for applications outside IT’s purview.

AI-Specific Saas Risks

According to the previously quoted report from Grip, AI adoption has surged by 4:1 compared to security governance improvements, leaving 80% of AI apps unsecured. 

AI Saas Security Risks include:

• Data Vulnerability: Employees often upload sensitive data to AI tools without safeguards, increasing the risk of Saas data breaches.
• Compliance Gaps: Using unapproved AI tools can violate data privacy regulations, leading to fines and reputational damage.
• Bias and Inaccuracy: Unchecked AI outputs can lead to discriminatory decisions or inaccurate results, particularly in regulated industries like finance and healthcare.

SaaS Sprawl By the Numbers

• SaaS Usage Growth: Enterprises have seen a 40% increase in SaaS adoption over the past two years, with medium-sized companies leading the charge at 47%. (Grip Report)
• Per Employee Usage: By 2024, employees are using an average of 13 SaaS tools, up from 7 in 2022—a staggering 85% increase. (Grip Report)

This growth is a double-edged sword: while it boosts productivity, it also creates governance headaches for IT and compliance teams.

Why SaaS Sprawl Is a Big Problem in 2024

The SaaS landscape is shifting rapidly, making SaaS sprawl an even greater challenge today. 

Let’s explore why:

1. The Explosion of Niche SaaS Tools

2024 has seen an explosion of highly specialized SaaS tools, designed to cater to precise business needs. While beneficial for specific use cases, these niche tools encourage over-purchasing, as teams add software for narrowly defined tasks without considering redundancy.

2. Hybrid Workplaces Demand More Tools

The hybrid work model has become the norm, driving demand for collaboration and remote management solutions. However, this surge has also led to overlapping functionalities, bloated tech stacks, and underutilized applications.

3. Saas Security Risks

More tools mean more access points for potential breaches. Organizations now face the daunting task of tracking data flows, permissions, and regulatory compliance across a sprawling SaaS ecosystem.

4. Shadow IT

Shadow IT, where teams adopt SaaS tools without IT’s knowledge, exacerbates the issue. This rogue adoption creates blind spots in governance, leaving companies vulnerable to inefficiencies and cyberattacks.

Slack-ing on Security? Risks in Your Saas Tools

We all know that SaaS tools are essential for productivity. These platforms, from Slack and Asana to Google Drive and Jira, help teams collaborate, manage projects, and store data. But as companies adopt more and more of these tools, it’s easy to overlook one key issue: SaaS security.

Here’s a guide to some common SaaS tools, their vulnerabilities, and their associated risks.

Collaboration Tools (Slack, Microsoft Teams, etc.)

Risks: Collaboration platforms like Slack and Microsoft Team have risks that arise from both misconfiguration and over-reliance on third-party apps. Even though these are company-approved tools, data leakage is a major concern. In Slack, a simple mistake in channel permissions can expose sensitive conversations to people who shouldn’t have access.

Both platforms allow third-party integrations, and this is where the problem lies. While these integrations can boost productivity, they also introduce vulnerabilities. If a third-party app is compromised, it can become a gateway for hackers into your system. And because these tools are widely used across teams, unauthorized apps can also easily slip through the cracks, leading to potential shadow IT problems.

Project Management Tools (Jira, Trello, Asana)

Risks: Project management tools like Jira, Trello, and Asana have become the backbone of agile workflows. They’re vital for tracking progress and ensuring project deadlines are met. However, the risks here are often tied to credential sharing and data persistence.

First, sharing login credentials—whether for convenience or lack of proper access management—creates serious vulnerabilities. One compromised account can grant attackers access to the entire project. Additionally, archived tasks or old project boards may still contain sensitive information. Without a strong data retention policy, this information can linger in the system long after it’s needed, exposing your company to unwanted access.

File Sharing Tools (Google Drive, Dropbox, OneDrive)

Risks: With file-sharing platforms like Google Drive, Dropbox, and OneDrive, the risks often arise from overexposed sharing links and lack of visibility. While these tools are convenient for collaborating on documents, many employees forget to adjust privacy settings. Studies show that nearly 30% of publicly accessible sharing links in file-sharing platforms expose confidential information to unauthorized users.

Another significant concern is that IT teams often lack visibility into how sensitive files are shared externally. If someone outside the company accesses these files, it could lead to severe compliance violations, particularly in industries like healthcare or finance, where strict data protection regulations are in place.

AI Tools (ChatGPT, Jasper, MidJourney)

Risks: AI tools like ChatGPT, Jasper, and MidJourney have seen massive growth, especially as organizations look for ways to automate tasks and enhance creativity. But, while AI tools can be incredibly useful, they also bring a unique set of challenges, especially when it comes to data misuse and lack of governance.

Employees may unknowingly input proprietary or sensitive data into AI platforms without realizing that this data might be retained or used for model training. This could expose critical intellectual property. Moreover, lack of governance around AI usage increases the risks—80% of AI deployments happen without clear governance frameworks, leaving companies vulnerable to misaligned uses and potential security breaches.

How to Spot the Sprawl in Your Organization

Before you can solve SaaS sprawl, you need to recognize the red flags. Here are the most common symptoms that your sprawl has spread too far:

1. Rising Software Costs: If SaaS expenses are climbing faster than ROI, sprawl may be to blame.
2. Confused Teams: Employees aren’t sure which tools to use for specific tasks, leading to wasted time and effort.
3. Redundant Features: Different teams use separate tools that achieve the same outcomes.
4. Lack of Oversight: IT struggles to keep track of licenses, access controls, and application usage.

Steps to Tackle SaaS Sprawl in 2024

1. Conduct a Comprehensive SaaS Audit

Begin with a complete inventory of your SaaS ecosystem. Answer key questions:

• Who is using the tools?
• What are the tools used for?
• How often are they accessed?
• How much do they cost?

2. Centralize SaaS Management

Adopt an SaaS Management Platform (SMP) to consolidate visibility and control. SMPs can:

• Track usage patterns.
• Manage licenses.
• Flag underutilized or risky applications.

3. Implement an Approval Process

Introduce a formal process for adopting new tools. Require teams to seek approval from IT or procurement to:

• Prevent shadow IT.
• Align new tools with organizational goals.
• Minimize redundancies.

4. Consolidate and Standardize Tools

Where possible, replace multiple niche tools with an integrated solution. For example, a single platform for project management, file sharing, and communication can simplify workflows and reduce costs.

5. Negotiate with Vendors

Identify opportunities to consolidate contracts or renegotiate pricing. Bulk licensing agreements often lead to substantial savings.

6. Train Your Teams

Ensure employees understand the tools and how to use them effectively. A well-trained team is less likely to seek unauthorized solutions.

The SaaS and AI boom brings both opportunity and risk. As organizations grapple with unprecedented sprawl in 2024, the key to staying secure lies in visibility, governance, and proactive management. You can transform SaaS sprawl from a security nightmare into a growth enabler by taking deliberate steps to address these challenges.

Ready to tame the beast?

The post The SaaS Sprawl of 2025: Tackling the Unseen Security Risks appeared first on Centraleyes.

*** This is a Security Bloggers Network syndicated blog from Centraleyes authored by Rebecca Kappel. Read the original post at: https://www.centraleyes.com/saas-sprawl-security-risks/