SaaS sprawl complicates software development and maintenance
The promise of SaaS is simple: make life easier by providing ready-to-use tools that let you focus on what matters. But the twist is that when you integrate dozens of SaaS applications into your operations, the reality becomes far messier. Each connection and component needs constant monitoring to make sure everything runs smoothly.
Maintaining these systems is not glamorous work, but it’s absolutely vital. If one app goes down, the whole operation can face costly outages, security breaches, or even worse—accumulated technical debt. What’s technical debt? Think of it like neglecting maintenance on a car. Ignore it too long, and eventually, the system breaks down. For enterprises, this can mean slowed innovation, strained IT teams, and systems that are increasingly fragile.
Here’s the data to back this up: A report from Onymos and the Enterprise Strategy Group shows that over 75% of IT leaders saw an increase in application update workloads last year. More than half admitted that daily maintenance takes up most of their time. This is time that could have been spent on innovation but instead goes to keeping things running. The SaaS model needs rethinking, less clutter, and more clarity.
SaaS reliance leads to inefficiencies and increasing costs
SaaS tools are supposed to make your team faster, smarter, and more efficient. And for a while, they do. But then you add another tool, and another, until what you’ve got is a sprawling ecosystem of disconnected apps. The hidden costs start to pile up: duplicated functionalities, fragmented data, and security vulnerabilities. Every step becomes harder than it should be.
Consider this: Over 50% of IT leaders surveyed said operational costs have spiked because of SaaS issues. Nearly half reported heightened security risks. And for end users? A quarter of them are frustrated with sluggish performance. That’s not exactly the cutting-edge experience SaaS was meant to deliver.
There’s also a risk factor here that deserves attention. Each SaaS tool integrated into your ecosystem is another potential target for cyberattacks. Without a unified governance approach, you’re exposing your business to unnecessary risks. It’s clear: SaaS needs a smarter, leaner approach, one that prioritizes efficiency over excess.
Critical system outsourcing introduces risks despite convenience
Outsourcing key systems to cloud-based SaaS providers feels like a no-brainer. Automatic updates, built-in security, and seamless scalability—it’s all there. But let’s talk about the control you’re giving up. When a critical system depends on a third-party provider, you’re putting your operations in someone else’s hands. If they mess up, you feel the heat.
A recent example is the CrowdStrike incident in July, where an automated update caused global disruptions on millions of Windows-based systems. Businesses scrambled to recover, and IT teams had to drop everything to put out the fire. The cost was technical, operational, reputational, and financial. This event should serve as a wake-up call. Convenience is great, but not at the expense of control.
Don’t view this as a drive to ditch SaaS altogether. It’s all about striking a balance. Keep the agility and scalability that SaaS offers, but don’t hand over the keys to your entire operation. Build redundancies, ensure transparency with your vendors, and have contingency plans in place.
SaaS workload growth stems from systemic issues in the model itself
The real issue with SaaS isn’t a one-off failure like CrowdStrike—it’s the model itself. By design, SaaS tools depend on interconnected networks of applications. Every new tool you add creates a domino effect of dependencies. And that means more work for your IT team to test, maintain, and troubleshoot.
Scalability is often touted as SaaS’s greatest strength, but let’s be honest—it’s also a weakness. Adding more apps doesn’t necessarily make your business more efficient. It just adds more moving parts, more potential points of failure, and more complexity. At some point, the system starts to work against you, not for you.
Shiva Nathan, CEO of Onymos, hit the nail on the head: Rising IT workloads aren’t just due to external disruptions. They’re also baked into the very fabric of SaaS. If we’re going to get to the true potential of this model, it’s time to rethink how we approach SaaS integration and governance. Simplicity, not complexity, should be the goal.
Key takeaways
- Growing workloads and operational strain: SaaS sprawl increases maintenance demands, consuming IT resources and reducing time for strategic innovation. Leaders should evaluate and streamline their SaaS portfolios to improve efficiency and free up resources for growth-oriented tasks.
- Rising costs and security risks: Excessive SaaS reliance inflates operational costs and exposes enterprises to security vulnerabilities. Decision-makers should enforce robust governance frameworks to identify overlapping tools, reduce redundancies, and standardize security protocols across platforms.
- Balancing agility with control: Outsourcing critical systems to SaaS providers offers convenience but risks operational disruptions, as seen in global incidents like the CrowdStrike update failure. Executives should balance vendor reliance with internal control by building redundancies and strengthening vendor accountability.
- Systemic issues in the SaaS model: SaaS workloads are inherently complex due to interdependencies, leading to diminishing returns as tools proliferate. Leaders should prioritize simplicity in SaaS integration, adopt scalable governance models, and regularly reassess the ROI of their software ecosystem.
- Proactive governance for future resilience: To avoid long-term technical debt, organizations must invest in proactive maintenance strategies and streamline their SaaS ecosystems. Encourage cross-departmental collaboration to better keep tools aligned with overall business objectives.
