Governing the SaaS explosion: How to establish control and minimise risk

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Governing the SaaS explosion: How to establish control and minimise risk

Is your SaaS environment under control, or are you struggling to maintain governance in the cloud? Find out more in this guide.

Published on 16th April 2025

The rise of Software-as-a-Service (SaaS) has transformed the modern workplace, empowering teams with agile, scalable solutions. However, this rapid adoption of cloud-based applications has also created a governance challenge. Without proper oversight, SaaS sprawl can lead to a fragmented IT landscape, increased security risks, compliance violations, and uncontrolled spending. Is your SaaS environment under control, or are you struggling to maintain governance in the cloud?

The SaaS Governance Gap: Understanding the Need

SaaS governance is the framework of policies, processes, and technologies that organisations use to manage their SaaS applications effectively. It ensures that SaaS usage aligns with business objectives, minimises risk, and maximises return on investment. Without a robust governance strategy, organisations can face a range of challenges, including:

Uncontrolled Spending: SaaS sprawl can lead to redundant subscriptions, unused licenses, and a lack of visibility into overall SaaS spending. This makes budgeting difficult and can result in significant financial waste.
Security Risks: Shadow IT—the use of unauthorised SaaS applications—introduces significant security vulnerabilities. These applications often lack the robust security controls of enterprise-grade software, increasing the risk of data breaches and malware infections.
Compliance Violations: Many industries have strict regulations regarding data privacy and security. Without proper SaaS governance, it’s challenging to ensure compliance with these regulations, potentially leading to legal and financial repercussions.
Operational Inefficiencies: A fragmented SaaS landscape can create operational inefficiencies. IT teams may struggle to support a wide range of applications, and employees may experience difficulties accessing the tools they need.
Lack of Standardisation: Without clear guidelines, different departments may adopt different SaaS applications for the same purpose, leading to inconsistencies and integration challenges.

Traditional Governance Approaches: Limitations in the Cloud

Traditional governance approaches, often designed for on-premise environments, are not well-suited for the dynamic, decentralised nature of SaaS. Manual processes, such as spreadsheets and email-based tracking, are simply not scalable or efficient enough to manage the complexity of today’s SaaS landscape. They lack the real-time visibility and automation capabilities necessary for effective governance.

Furthermore, traditional IT governance frameworks may not fully address the unique challenges of SaaS, such as shadow IT and the shared responsibility model between the organisation and the SaaS provider.

The Solution: Embracing SaaS Management for Effective Governance

A dedicated SaaS Management Platform (SMP) is essential for establishing and maintaining effective SaaS governance. It provides a centralised platform for discovering, managing, and governing all SaaS applications within an organisation. Here’s how it can help:

Centralised Visibility: An SMP provides a comprehensive view of the entire SaaS landscape, including both sanctioned and shadow IT. This enables organisations to understand which applications are being used, by whom, and how much is being spent.
Policy Enforcement: SMPs can help organisations enforce their SaaS governance policies by automating tasks such as access provisioning, deprovisioning, and license management. This ensures consistency and reduces the risk of human error.
Spend Management: SMPs provide detailed insights into SaaS spending, allowing organisations to identify areas of waste and optimise their licensing agreements. This helps control costs and maximise ROI.
Security and Compliance: SMPs integrate with existing security and compliance tools to help organisations manage risks and ensure compliance with relevant regulations. They can identify and mitigate vulnerabilities associated with shadow IT and enforce security policies across the SaaS environment.
Workflow Automation: SMPs can automate key governance processes, such as application requests, approvals, and renewals. This streamlines workflows and improves efficiency.
Reporting and Analytics: SMPs provide detailed reports and analytics on SaaS usage, spending, and compliance. This enables organisations to track key metrics, identify trends, and make informed decisions about their SaaS strategy.

Building a Robust SaaS Governance Framework

Implementing an SMP is a crucial step towards establishing effective SaaS governance, but it’s not the only one. Here are some key considerations for organisations looking to build a robust governance framework:

Establish a SaaS Governance Committee: Create a cross-functional team responsible for developing and implementing SaaS governance policies. This team should include representatives from IT, security, finance, legal, and other relevant departments.
Define Clear Policies: Develop clear and comprehensive policies that address all aspects of SaaS usage, including application selection, procurement, security, access control, data protection, and compliance.
Communicate Policies Effectively: Ensure that all employees understand the SaaS governance policies and their responsibilities in adhering to them.
Regularly Review and Update Policies: SaaS governance policies should be reviewed and updated regularly to reflect changes in the business environment and evolving security and compliance needs.
Implement a Formal Approval Process: Establish a formal process for requesting and approving new SaaS applications. This helps prevent the uncontrolled growth of shadow IT.
Monitor and Enforce Compliance: Regularly monitor SaaS usage and enforce compliance with established policies. Take corrective action when necessary.

By embracing a proactive approach to SaaS governance and leveraging the capabilities of an SMP, organisations can gain control of their SaaS environment, minimise risk, and maximise the value of their cloud investments.