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Let's Understand SaaS Creep and Subscription Traps
I think a lot of businesses either do not care or do not know.... that they have an issue.... SaaS creep is a modern challenge that many small businesses face as they increasingly rely on cloud-based software solutions to manage operations, communication, marketing, and finance. The term refers to the gradual and often unnoticed accumulation of software-as-a-service (SaaS) subscriptions over time. This typically happens when different departments or even individual employees sign up for various tools to solve immediate problems, without a centralized process for vetting or managing these subscriptions. At first, each subscription might seem affordable, but as the number grows, the combined costs can become a significant burden on the business’s budget.
The Hidden Costs of Overlapping Software
The impact of SaaS creep goes beyond just wasted money. When a business is paying for too many tools, it often ends up with overlapping software that performs the same or similar functions. For example, a company might be paying for two project management platforms, three different file storage solutions, or multiple marketing automation tools, none of which are fully utilized. This redundancy not only wastes money but also creates confusion for staff, who must learn and switch between multiple systems. Over time, this can lead to decreased productivity, more errors, and frustration among employees.
How Subscription Traps Drain Resources
Subscription traps are another risk that comes with SaaS creep. These occur when a business continues to pay for software it no longer needs or uses, often because the subscription renews automatically and goes unnoticed. Many SaaS providers make it easy to sign up but difficult to cancel, and without regular reviews, these forgotten subscriptions can quietly drain company resources. Sometimes, businesses also get locked into long-term contracts that are hard to exit, further compounding the problem. - This is a huge issue in Japan....
Security Implications of SaaS Creep
Beyond financial and operational inefficiencies, SaaS creep and subscription traps can introduce serious security vulnerabilities for small businesses. As more SaaS applications are adopted without centralized oversight, organizations face what is known as "SaaS risk"—the gradual accumulation of unmanaged and unsecured software, often bypassing IT and security departments. This leads to the rise of shadow IT, where employees use unauthorized or unmonitored apps, creating a flood of untracked user accounts and increasing the overall attack surface of the business. Traditional security measures often fail to address these risks, leaving businesses vulnerable to data breaches and other cyber threats.
Another major concern is privilege issues, which occurs when employees accumulate excessive access rights over time, often as a result of decentralized SaaS adoption. This can happen when employees change roles or receive temporary permissions that are never revoked. This is a serious security risk because it expands the number of users with unnecessary access to sensitive data, making it easier for attackers to exploit these accounts or for insider threats to occur. If former employees or those with outdated roles retain access to critical systems, the risk of unauthorized data access and breaches increases significantly.
The complexity of managing multiple SaaS subscriptions can lead to poor access controls, inefficient deprovisioning processes, and overlooked security vulnerabilities. This not only heightens the risk of insider misuse and external attacks but can also result in non-compliance with regulations such as GDPR or HIPAA, exposing the business to potential legal penalties and reputational damage.
Warning Signs of SaaS Creep and Inefficiency
Recognizing SaaS creep and subscription traps requires vigilance. Business owners should look for warning signs such as rising software expenses, difficulty tracking all active subscriptions, employee complaints about tool overload, and frequent confusion over which platform to use for specific tasks. If the finance team is struggling to reconcile software invoices or if managers notice that some tools are barely being used, these are clear indicators that SaaS creep is at play.
Strategies to Regain Control and Improve Efficiency
To combat these issues, it’s really important for small businesses to implement regular audits of all software subscriptions, consolidate tools with overlapping features, and establish clear policies for approving new software purchases. By doing so, they can regain control over their SaaS spending, improve operational efficiency, and ensure that every subscription delivers real value to the business.
With all that said though......
FOSS and Open Source Software Can Help
FOSS offers a solution to the challenges of SaaS creep and subscription traps that small businesses face. Unlike proprietary SaaS tools, FOSS alternatives are typically free to use and do not require ongoing subscription payments, allowing businesses to eliminate recurring costs and better control their budgets. With open source software, organizations gain full access to the source code, allowing them to customize the tools to fit their exact needs and workflows, rather than being locked into the limited features or pricing tiers of commercial SaaS platforms
Other advantages of FOSS is the ability to self-host applications, which gives businesses complete control over their data and infrastructure. This control helps avoid vendor lock-in and also addresses many of the security and privacy concerns that come with SaaS sprawl, such as data exposure, shadow IT, and privilege issues. When hosting open source alternatives on their own servers or trusted cloud environments, companies can enforce stricter access controls, ensure proper deprovisioning, and maintain compliance with regulations more easily. Furthermore, the transparency of open source code allows for community-driven security audits and rapid identification of vulnerabilities, reducing the risk of hidden backdoors or unpatched exploits.
Adopting FOSS tools helps to consolidate the software stack, reduce redundancy, and maintain long-term flexibility as needs evolve.