While SaaS applications promise to boost productivity and business outcomes, the unchecked surge of subscription applications in the enterprise is putting a heavy strain on budgets, complicating compliance, and compromising security. Gartner’s recent Magic Quadrant for SaaS Management Platforms (SMP) shines a light on these issues, providing insights into why IT departments are struggling to manage SaaS sprawl effectively.

In this article, we’ll explore the scope of the SaaS sprawl problem and what’s causing it.

The Financial Impact of SaaS Sprawl

With the rapid expansion of SaaS tools, organizations are spending more than ever on software subscriptions. According to Gartner’s report, SaaS spending per employee now averages $1,370 annually—a 55% increase since 2021. This increase translates to an additional $500 per employee each year spent on SaaS, which can quickly add up in larger organizations.

However, a significant portion of this investment is going to waste. Gartner’s report finds that up to 25% of these licenses go unused. Block 64’s own data shows that 47% of users are not fully utilizing Microsoft 365 products, for example.

When SaaS applications go unused or are underutilized, they quickly become a financial drain rather than an asset. Furthermore, SaaS sprawl often results in overlapping applications across different departments, with multiple teams paying for similar tools that perform the same function. This fragmentation drives up costs even further, creating hidden expenses that IT and finance departments may struggle to track.

Cybersecurity Risks and Compliance Gaps

SaaS sprawl is not just a budgetary issue—it also poses significant security risks. According to Gartner, organizations that do not centrally manage their SaaS life cycles will be five times more susceptible to data loss or cyber incidents by 2027, largely due to fragmented visibility into SaaS applications and configurations.

Alarmingly, most organizations are only aware of about 40% of the applications in use across their SaaS environments. This lack of oversight leaves numerous applications, including shadow IT tools, under the radar of IT departments, heightening the risk of data breaches, insecure integrations, and regulatory non-compliance.

Security gaps from unmanaged software are a serious concern. Block 64’s recent data, from our Benchmarks for CIOs report, shows that 74% of endpoints have at least one critical vulnerability with a CVSS score over 9.0. This risk level underscores the vulnerabilities created by SaaS sprawl and the lack of centralized management.

Shadow IT: A Growing Challenge

One major contributor to SaaS sprawl is shadow IT—when employees or departments independently subscribe to SaaS applications without involving IT. Gartner found that IT departments now manage only 28% of SaaS spend and 17% of applications, a decrease from the previous year. Shadow IT not only creates compliance and security issues but also drains budgets as untracked software expenditures go unreported and unmanaged.

Employees may turn to shadow IT solutions to meet their immediate needs, bypassing IT policies to access specialized tools more quickly. This decentralized adoption becomes problematic when these applications are not configured or monitored for compliance, security, or efficiency. According to BetterCloud, 80% of employees admit to using SaaS applications at work without IT approval, and 67% of teams have introduced their own collaboration tools without informing IT. This widespread use of unapproved software underscores the need for more structured oversight to manage security and compliance risks effectively.

Unchecked SaaS Growth: Unsustainable Situation

The unchecked growth of SaaS applications has led to a complex and costly environment for many organizations. Rising SaaS expenses, often driven by overlapping tools and under-utilized licenses, are putting unnecessary strain on budgets. Beyond the financial impact, SaaS sprawl introduces significant security and compliance risks, especially when shadow IT flourishes.

In our next article, we’ll explore practical solutions to these challenges, including the benefits of centralized SaaS management and the tools available to help IT teams regain control.

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The post The Hidden Costs of SaaS Sprawl: Why It’s Happening and How Bad It’s Getting first appeared on Block 64.

There is far too much happening beneath the surface that they simply aren’t able to see or do anything about. It’s like an iceberg.

This is a serious issue, one that leads to unmanaged costs, hidden security risks, and surprise fees. No IT department can afford to operate like this. Which is why we created Block 64.

Block 64 is a comprehensive IT asset discovery and management platform for organizations looking to gain full visibility into their IT infrastructure. It empowers IT leaders to proactively oversee IT lifecycle, ensure compliance, and tackle security vulnerabilities head-on.

In our last article, we talked a little bit about why this is happening. Read all about the Top ITAM Mistakes if you missed it.

In this article, we will go through some of our key solutions and show you how Block 64 solves the visibility crisis, transforming the way organizations manage their IT environments.

1. Lifecycle Management

What is Lifecycle Management?

Lifecycle Management involves overseeing the entire lifespan of IT assets—including hardware, software, and cloud infrastructure—from acquisition through to decommissioning. It’s about ensuring these assets are optimized, secure, and up-to-date throughout their use.

Why is it important?

Every IT asset has a finite lifespan. Neglecting to monitor their end-of-life (EOL) status can lead to unexpected downtimes, security vulnerabilities, and inflated maintenance costs. Operating on outdated hardware or software not only risks operational efficiency but also misses opportunities for cost-effective upgrades.

This is not a fringe concern. According to our Benchmarks for CIOs research, 37% of organizations are running unsupported SQL servers, and 52% are operating with unsupported Windows Server versions. Similarly, the report, which analyzed more than 250,000 endpoints across hundreds of North American businesses, found that 44% of IT hardware is beyond warranty. Aging, outdated and unsupported IT infrastructure is a serious, ubiquitous issue.

How Block 64 Solves It

Block 64 automates the tracking of assets across your entire IT landscape, delivering real-time insights into the age, usage, and performance of every component. For instance, the platform proactively flags systems nearing their EOL, allowing you to schedule replacements or upgrades before failures occur. This preemptive approach eliminates reactive replacements and surprise downtimes. By automating lifecycle tracking, Block 64 reduces manual effort and ensures no asset slips through the cracks.

Value Delivered

• Reduced Downtime: Prevent unexpected system failures by replacing assets before they fail.
• Cost Savings: Avoid expensive, last-minute upgrades and capitalize on cost-effective technology advancements.
• Resource Optimization: Free up IT personnel from manual tracking tasks, allowing them to focus on strategic initiatives.
• Enhanced Security: Mitigate risks associated with obsolete systems that are more susceptible to vulnerabilities.

2. Security & Vulnerability Management

What is Security & Vulnerability Management?

This practice involves the continuous identification, assessment, and remediation of risks within your IT environment. As new vulnerabilities emerge, IT teams must stay vigilant to prevent potential breaches.

Why is it important?

Unaddressed vulnerabilities are gateways for cyberattacks, leading to data breaches, financial losses, and damage to your organization’s reputation. In an era of sophisticated and evolving threats, proactive vulnerability management is critical to safeguarding your infrastructure.

How Block 64 Solves It

Block 64 offers continuous scanning of your IT environment, pinpointing security vulnerabilities across all endpoints. It identifies risks such as outdated software versions, missing patches, or system misconfigurations. For example, Block 64’s insights revealed that 74% of endpoints were exposed to critical vulnerabilities in a recent benchmark report. Armed with this information, IT teams can swiftly apply patches, upgrade software, or adjust security policies before these vulnerabilities are exploited.

Value Delivered

• Proactive Risk Mitigation: Address vulnerabilities before they can be exploited.
• Time Efficiency: Reduce the time spent manually tracking and prioritizing threats.
• Resource Allocation: Focus efforts on the most critical vulnerabilities based on severity.
• Enhanced Security Posture: Strengthen defenses against potential cyberattacks.

3. Compliance & License Management

What is Compliance & License Management?

Compliance management ensures your IT environment adheres to regulatory and industry standards. License management involves tracking software usage to prevent over-licensing (wasting resources) or under-licensing (risking penalties).

Why is it important?

Software audits can result in unexpected fees if licenses aren’t properly managed. Over-licensing leads to unnecessary expenses, while under-licensing exposes you to legal risks and potential fines during audits. For example, our Benchmarks research showed that 63% of businesses are running legacy versions of Java – putting them at risk of massive price increases due to changes in Java licensing.

How Block 64 Solves It

Block 64 provides real-time tracking of software usage and licensing across your organization. It delivers detailed insights into software utilization, helping you determine whether you’re compliant with licensing agreements. For instance, the platform can alert you when you’re approaching or exceeding license limits, allowing corrective action before an audit. Conversely, it highlights underused licenses, enabling you to reallocate or discontinue unused software subscriptions.

Value Delivered

• Cost Avoidance: Prevent financial penalties associated with non-compliance.
• Optimized Spending: Eliminate costs from underutilized licenses.
• Audit Preparedness: Maintain readiness for audits with accurate, up-to-date licensing information.
• Operational Efficiency: Save time by automating license tracking and compliance reporting.

4. Cloud & Copilot Planning

What is Cloud & Copilot Planning?

Cloud planning involves evaluating and migrating suitable IT assets to the cloud to enhance efficiency and reduce costs. Copilot planning focuses on preparing your IT environment for AI-driven tools like Microsoft Copilot, ensuring compatibility and optimal performance.

Why is it important?

Strategic cloud migration can lead to significant cost savings and operational improvements, but missteps can result in overspending and resource misalignment. Similarly, integrating AI tools requires careful preparation to avoid performance issues and security vulnerabilities.

How Block 64 Solves It

Block 64 assists in identifying which assets are prime candidates for cloud migration by analyzing resource utilization and interdependencies. For example, it can spotlight underutilized servers that, when migrated, optimize cloud expenditure and efficiency. In terms of Copilot planning, Block 64 ensures your infrastructure is secure and compatible with AI tools, facilitating a smooth and effective rollout.

Value Delivered

• Cost Optimization: Migrate only necessary assets to the cloud, avoiding unnecessary expenses.
• Efficient Migrations: Streamline the migration process with data-driven insights.
• AI Integration: Accelerate the adoption of AI tools like Copilot without compromising security.
• Future-Proofing: Prepare your IT environment for emerging technologies and innovations.

Ready to Transform Your IT Environment?

Experience the transformative power of proactive IT management with Block 64. Sign up for a free trial and gain full access to our platform—no commitments required. Devote just 30 minutes per week to your personalized dashboard, and witness the immediate value we bring.

👉 Start Your Free Trial Today

Don’t let outdated practices hold your organization back. Embrace the future of IT management and unlock your team’s full potential with Block 64.

The post Visibility Crisis: How Block 64 Solves Modern ITAM Challenges first appeared on Block 64.

Consider this: according to our July 2024 Benchmarks Report, a staggering 74% of endpoints were exposed to critical vulnerabilities, while 97% of servers operated at less than 25% capacity. These numbers aren’t just statistics—they represent a massive waste of resources and a ticking operational time bomb.

So, what’s causing these alarming issues? In this article, we’ll delve into the top mistakes leading to reactive ITAM, explore the severe consequences of these missteps, and chart a proactive path forward to save you time and money.

What’s Causing Reactive ITAM?

1. Ignoring the Problem Until It’s Too Late

Too often, busy IT teams adopt a “wait and see” mindset, allowing potential issues to simmer beneath the surface until a crisis erupts. Be it a crippling security breach, a catastrophic outage, or an unexpected software audit, these emergencies starkly illuminate just how little visibility teams truly have over their environments. By that point, it’s not just a matter of playing catch-up—the damage is already done, and the costs, both financial and to your reputation, can be devastating. Ignoring these brewing problems doesn’t just postpone action; it exponentially increases risks, leading to exorbitant fixes and plunging operations into chaos.

2. Fragmented Tools: A Maze Without a Map

Another major culprit is the reliance on fragmented tools—a scattered array of dashboards and systems that each offer only a fragment of the overall picture. One tool monitors hardware performance, another tracks software licenses, yet none provide a unified, comprehensive view. Without integration, IT admins are left without a central “source of truth.” Navigating this maze of partial insights is like trying to manage a skyscraper with a flashlight: you might illuminate what’s immediately in front of you, but you miss the cracks forming in the foundation. Critical details slip through the cracks, making timely and informed action virtually impossible.

3. Manual Processes: The Spreadsheet Trap

Surprisingly, many organizations still rely on manual processes like spreadsheets to manage their IT environments. While this might have sufficed in a simpler era, today’s intricate and rapidly evolving IT landscapes render manual methods obsolete. IT admins pour countless hours—even days—into crafting inventory lists, verifying compliance, and conducting analyses, only to be left with data that’s outdated the moment it’s compiled. The margin for human error is enormous, and information gaps are all but guaranteed. This do-it-yourself approach isn’t merely inefficient; it’s perilous, often resulting in incomplete or inaccurate data. Ultimately, the spreadsheet trap doesn’t just squander valuable time—it exposes organizations to significant security risks and compliance failures.

The Consequences of Reactive ITAM

The repercussions of reactive ITAM ripple through every facet of an organization. Financially, companies hemorrhage money on unused licenses and underutilized resources. Operationally, teams are trapped in a perpetual cycle of firefighting rather than strategic planning. In terms of security and compliance, the stakes escalate dramatically—concealed vulnerabilities and unexpected audits can culminate in crippling fines or devastating data breaches. Organizations mired in reactivity are perpetually on the back foot, scrambling to extinguish fires instead of preventing them in the first place.

The Path Forward: Proactive ITAM

The way out is straightforward: embrace proactive ITAM. By implementing a comprehensive solution like Block 64, IT teams can centralize their data, gain real-time insights, and take preemptive action before issues escalate. Proactive ITAM transcends mere asset management; it’s about equipping IT leaders with the tools and intelligence needed to make strategic decisions, optimize costs, and mitigate risks. In an ever-changing IT landscape, clinging to reactive strategies isn’t just risky—it’s a blueprint for obsolescence.

By recognizing and addressing these common mistakes, organizations can transition from a reactive to a proactive ITAM approach. The result? Reduced costs, enhanced security, and a robust IT infrastructure that’s prepared for the challenges of tomorrow.

The post Top IT Asset Management Mistakes Costing You Time and Money first appeared on Block 64.