Dec 5, 2024
Dec 5, 2024
In an era where every dollar counts and cyber attacks are increasing in volume and sophistication, addressing the dual impact of unused SaaS licenses on security and SaaS spend management is no longer optional—it’s essential.
It’s tough to find an organization that isn’t SaaS-dependent in their business operations today. From project management to communication platforms, SaaS applications have become indispensable. However, as the number of SaaS apps grows, so do the security risks and potential for wasted tech spend, particularly in unused SaaS licenses. According to Grip’s 2025 SaaS Security Risks Report, organizations are hemorrhaging money on overprovisioned tools that employees simply aren’t using. Even more alarming, these unused licenses often remain connected to core systems, creating exploitable security gaps.
In an era where every dollar counts and cyber attacks are increasing in volume and sophistication, addressing the dual impact of unused SaaS licenses on security and SaaS spend management is no longer optional—it’s essential.
Over the past few years, the number of SaaS tools employees rely on has grown rapidly. In 2022, the average employee used seven tools to perform their job. By early 2024, that number jumped to 13, marking an 85% increase in managed SaaS tools per user, according to Grip’s research. This surge in SaaS adoption reflects the increasing integration of cloud-based solutions into daily workflows—but it also reveals a glaring problem.
Today, IT departments typically provision employees with 30 different SaaS tools, though most use less than half. On average, employees access only 13 tools, leaving a significant gap between what’s provided and what’s utilized. This discrepancy represents more than wasted spending—it highlights inefficiencies in SaaS spend management and increases the attack surface for cyber threats.
The financial implications of unused SaaS licenses are substantial. With tech spending under heightened scrutiny, particularly during times of economic uncertainty, companies seek to trim unnecessary costs and optimize SaaS spend management. Unused licenses offer an obvious cost-cutting opportunity—but only if organizations have the visibility to identify them.
On average, 73% of provisioned users never utilize their assigned SaaS application licenses, an indicator that a critical flaw exists in how organizations manage their SaaS portfolios. Tools are being purchased and assigned without proper monitoring of actual usage, resulting in overprovisioning.
Part of the problem lies in the rapid pace of SaaS adoption. IT teams often provision new applications to entire groups of employees without fully understanding how—or if—those tools will be used. This blanket provisioning leads to overspending, operational inefficiencies, and increased security risks as unused accounts accumulate.
For example, in a case cited in Grip’s report, a large enterprise conducted a usage audit of its Adobe licenses and discovered that a significant percentage of provisioned users weren’t utilizing the tools. By reclaiming these licenses and renegotiating their software contract, the company saved nearly a million dollars annually while reducing the number of dormant accounts—closing both budgetary and security gaps.
Unused SaaS licenses don’t just drain budgets—they expose organizations to significant security and compliance risks. Dormant accounts tied to unused licenses often remain connected to core systems but lack active monitoring, making them prime targets for cyberattacks. Grip’s research revealed that 16% of managed apps in 2023 went unused yet still maintained access to sensitive organizational resources.
These accounts can serve as entry points for malicious actors, who exploit the lack of oversight to access sensitive applications or data. For organizations in regulated industries, these risks extend to compliance violations, as poorly managed accounts can result in breaches of data protection regulations, fines, and reputational damage.
Proactive SaaS spend management can mitigate these risks by ensuring unused licenses are promptly revoked, dormant accounts are deactivated, and SaaS portfolios are aligned with actual usage.
Effective SaaS spend management starts with SaaS visibility and user-level monitoring. Organizations can make data-driven decisions that reduce risk and save money by understanding how employees use their assigned SaaS tools and identifying redundant shadow SaaS applications. This includes determining which licenses to retain, which to reclaim, where to scale back, and guiding employees toward corporate-approved or preferred applications as appropriate.
Key strategies include:
Identify and Reduce Wasted Licensing Costs
Determine which managed SaaS licenses are going unused and take action to deactivate those accounts.
Eliminate Entire Applications
Analyze SAML-based app usage to identify underutilized applications. If both the app and SAML usage are low, consider decommissioning the app to save costs and eliminate unnecessary security exposure.
Control Redundant Apps
Consolidate duplicative applications (for example, Monday and Asana) by migrating users to a single preferred platform. This reduces licensing costs, streamlines operations, and minimizes the security risks of managing multiple overlapping tools.
Optimize Adoption of Managed Applications
Redirect employees from shadow SaaS tools to approved, managed applications. This improves the ROI of existing licenses while maintaining tighter security controls over corporate data.
Reclaiming wasted SaaS expenditures is more than just an annual software audit—it requires a programmatic approach to SaaS spend management that aligns with evolving workforce needs and actual SaaS usage. Regularly pruning unused licenses, conducting detailed usage reviews, and renegotiating contracts based on actual consumption are essential to ensuring that SaaS risks are minimized and your SaaS spend is efficient and cost-effective.
As SaaS adoption continues to grow, so does the potential for budget inefficiencies and security vulnerabilities tied to unused licenses. Each unused license and each duplicative tool aren’t just wasted spend—they’re an opportunity lost to streamline, secure, and optimize your SaaS landscape, too.
With IT budgets under pressure, every dollar matters. Yet, reclaiming those dollars doesn’t have to be complicated. The key to SaaS risk and spend management lies in gaining visibility into what’s being used—and what isn’t. Grip equips organizations with the insights to take control, strengthen SaaS security and compliance, and reduce unnecessary expenses.
Don’t let invisible SaaS inefficiencies undermine your IT strategy. Let Grip help you identify security risks and savings opportunities, eliminate redundancies, and ensure every SaaS dollar spent delivers maximum value. Book time with our team to learn more and discuss your unique situation.
Download the 2025 SaaS Security Risks Report
Read how IPG successfully reduced its software costs
Gain a complete view of your SaaS usage—including shadow SaaS and rogue cloud accounts—from an identity-centric viewpoint. See how Grip can improve the security of your enterprise.
Fill out the form and watch webinar's video.
