SaaS Sprawl refers to the uncontrolled and decentralized proliferation of Software as a Service (SaaS) applications within an organization. As SaaS tools have become increasingly easy to purchase and deploy—often requiring only a credit card and a few clicks—individual employees, teams, or departments can independently adopt new tools without going through formal IT procurement processes. This leads to a fragmented ecosystem of applications across the organization.

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The consequences of SaaS Sprawl are far-reaching:

• Security risks: Unsanctioned or unknown applications may lack proper security configurations or expose sensitive data.
• Compliance concerns: Organizations may fall out of compliance with data protection laws (like GDPR, HIPAA, or SOC 2) if unauthorized tools are processing regulated data.
• Visibility gaps: IT and security teams often lack a complete inventory of active SaaS apps, making it difficult to assess and manage risk.
• Operational inefficiencies: Duplicate tools with overlapping functionality can create redundancy and confusion.
• Wasted spend: Licenses for underutilized or forgotten tools can contribute to unnecessary costs.

Addressing SaaS Sprawl requires a combination of discovery, governance, and automation. Organizations should implement tools that provide continuous visibility into all SaaS apps in use, regardless of who adopted them or how they were configured. Clear policies and guardrails can help guide acceptable SaaS usage and reduce shadow IT. Periodic audits and reviews can surface redundant or high-risk applications and inform rationalization efforts.

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As hybrid and remote work environments continue to expand, SaaS Sprawl has become a growing challenge—and a growing attack surface. Controlling it is essential for improving security posture, optimizing software spend, and maintaining compliance across an increasingly complex IT landscape.

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Learn more about Nudge Security's approach to SaaS Sprawl →