How Much is Wasted on SaaS Spend

Is your company overspending on SaaS due to different departments purchasing the same licenses independently?

Many enterprises without a clear visibility into their SaaS ecosystem spend too much on their SaaS applications. Additionally, they were unaware of the extent to which SaaS spend is being wasted.

To address this concern, you’ll need a SaaS management Software (CloudFuze Manage) to optimize your SaaS spending.

In this blog post, you’ll discover how much money is being wasted as SaaS spend and its reason, their best practices, and how CloudFuze Manage helps enterprises in SaaS spend optimization.

How much is wasted on SaaS spend?

Consider a mid-sized company with 1,353 active users across 9 integrated applications, and you spend $7,076 annually on SaaS subscriptions. This might seem reasonable for your user count, but you could save $1,391.59 from unused licenses alone; nearly 20% of your total annual SaaS spend.

When you multiply this across larger enterprises with hundreds of applications and thousands of users, your savings can reach hundreds of thousands or even millions of dollars annually.

To manage software costs efficiently, you’ll need a third-party SaaS management platform like CloudFuze Manage.

Here’s the preview of our SMP’s Dashboard, effortlessly showing how much SaaS spend is wasted:

Reasons Beyond Wasted SaaS Spending

There are several reasons that impact your organization’s software budget, which are discussed below:

Zero Visibility into Your SaaS Apps

You may find it difficult to track actual SaaS usage or implement license policies without centralised visibility. This often results in the growth of Shadow IT tools and duplicate licenses, as well as a lack of proper insights, which unnecessarily increase your SaaS spend.

Unnecessarily Paying for Dormant Licenses

Without a proper tool for governing SaaS licenses, a company’s finance team continues to pay for permits that are not being used. These idle accounts not only waste money but also introduce SaaS-related security risks.

SaaS License Over-Provisioning

You might purchase more licenses than necessary, expecting future growth. This often results in an unused number of licenses and incurs hidden subscription costs.

Strategies You Can Use to Reduce SaaS Waste

Here are some easy and effective ways to reduce SaaS waste and save money:

1. You must audit your applications quarterly or biannually so that you can spot inactive users, unused licenses, and underutilized features.
2. Use a reliable SaaS management platform like CloudFuze Manage to maintain real-time and full visibility. These tools help you optimize costs and licenses.
3. You must establish clear governance policies for procurement and license management. It will prevent unnecessary spending through structured approvals and automated de-provisioning.
4. Sometimes, low app usage is due to poor adoption. Invest in training so your teams get the most out of existing tools before adding new ones.

How Does Our SMP Help in SaaS Spend Management?

CloudFuze Manage provides the full visibility and control you need to minimize waste and optimize the value of your SaaS investments. Here’s how it helps:

Save Up to 30% on SaaS Costs

You can save up to 30% on your SaaS costs by acting on intelligent, data-driven recommendations. Our platform analyses your usage patterns and highlights areas where you’re overspending, so you can take immediate action.

Find and Remove Unused Licenses and Shadow IT tools

Unused licenses and redundant tools often go unnoticed, but CloudFuze Manage continuously monitors user activity to help you identify and eliminate them before renewal. This means you stop paying for tools that no one is using.

Reassign Underutilized Licenses

When licenses are underutilized, you don’t have to let them go to waste. Our SMP enables you to reassign those licenses to users who actually need them, making sure every license is used efficiently.

Get Timely Renewal Alerts

You’ll also receive timely renewal alerts, giving you the opportunity to review usage and make informed decisions rather than being caught off guard by auto-renewals.

Automate User Onboarding and Offboarding

Manual onboarding and offboarding often lead to licensing waste. With CloudFuze, you can automate these processes, making sure licenses are provisioned and deprovisioned accurately and on time.

Download Reports

Finally, you’ll have access to detailed cost optimization reports that give your IT, finance, and procurement teams the insights they need to make smarter, data-backed decisions.

Turn Your SaaS Overspend into SaaS Savings with CloudFuze Manage

SaaS optimization isn’t just about cutting costs, but it’s also about being audit-ready every time. With our leading SMP, you can reduce your overall SaaS spend by 25–30%, improve budget predictability, and optimize your license utilization. You’ll also lower compliance and security risks while enhancing user satisfaction through smarter, more efficient tool usage.

FAQs

1. Can CloudFuze Manage detect duplicate tools with overlapping functionality across departments?

With our SMP, you can easily find out duplicate SaaS tools that serve similar functions across departments. Additionally, our solution enables you to remove overlapping apps and optimize your software stack for improved cost savings.

2. What are the most common signs that my organization is overspending on SaaS?

You overspend on SaaS when you buy redundant tools, ignore unused licenses, skip audits, and miss adoption issues. Our SaaS management solution helps you identify inefficiencies and match spend with actual business needs.

3. How does user adoption help in SaaS cost efficiency?

You improve SaaS cost efficiency when your teams actively use the tools you invest in. Low adoption results in wasted money, reduced return on investment, and prevents you from getting full value from your SaaS subscriptions.