In today’s fast-paced corporate environment, the widespread adoption of Software as a Service (SaaS) cloud applications has revolutionized the way businesses operate. These versatile solutions have become indispensable tools for organizations seeking agility, scalability, and efficiency.

According to recent industry reports, the global SaaS market is projected to reach $220 billion by 2027, reflecting a compound annual growth rate (CAGR) of 12.4% from 2020 to 2027. However, alongside the myriad benefits, the prevalence of SaaS applications in companies has brought about an array of potential risks that demand careful consideration.

In this comprehensive exploration, we will delve deeper into the prevalence of SaaS cloud application usage and dissect the significant risks that organizations must navigate to ensure a secure and seamless operation.

Unused Licenses: A Costly Oversight

As businesses expand and contract, the dynamic nature of their workforce can often result in the creation of unused licenses. According to a recent survey, an average of 25% of purchased SaaS licenses across industries go unused, translating to significant financial implications. This represents not only a financial burden but also a security vulnerability.

Licenses that go unutilized may become an overlooked avenue for unauthorized access, posing a potential threat to the organization’s sensitive data. A proactive approach to mitigating this risk involves regular license audits, identifying dormant accounts, and promptly deactivating them.

Monitoring license usage optimizes costs and helps fortifying the organization’s security against potential breaches.

In addition to the financial implications and security risks, unused licenses can contribute to a cluttered and inefficient IT environment. This inefficiency includes the provisioning and de-provisioning processes, potentially leading to delays in onboarding new employees or revoking access for departing ones.

Third-Party Applications Risk: Navigating the Web of Connections

With the rise of Single Sign-On (SSO) solutions, employees can conveniently access multiple applications using a single set of credentials. While this enhances user experience and productivity, it also introduces a potential security vulnerability.

Malicious or compromised applications can exploit the privileges granted through SSO, potentially leading to data breaches or unauthorized access. To counteract this risk, organizations should monitor and establish rigorous vetting processes for third-party applications, ensuring they adhere to the necessary security standards before integration. Regular security assessments and continuous monitoring of third-party applications can further enhance an organization’s ability to identify and address potential vulnerabilities promptly.

In-App Risks: Strengthening the Fortifications

The vulnerabilities extend beyond external threats to in-app risks that demand attention. In-app risks include the absence of Two-Factor Authentication (2FA), over-privileged users and infrequent password changes. Without 2FA, user accounts become more susceptible to unauthorized access in the event of password compromise. Similarly, users neglecting to change passwords regularly heighten the risk of compromised accounts. To address these concerns, organizations must prioritize the implementation of 2FA and enforce periodic password changes, ensuring a robust defense against potential security breaches. Monitoring user privileges is equally crucial in preventing unauthorized access and maintaining the integrity of sensitive data. Over-privileged accounts can become entry points for malicious actors, potentially leading to unauthorized data access or manipulation. Regular reviews of user permissions and implementing the principle of least privilege can significantly reduce the risk associated with over-privileged accounts.

Shadow IT: The Unseen Culprit

This phenomenon refers to the unauthorized use of applications and services within an organization, often initiated by employees seeking more flexible solutions. Originating from a variety of motivations such as perceived limitations of official tools or the desire for increased productivity, Shadow IT poses significant risks. One primary risk is compromised security. When employees independently adopt SaaS applications without the oversight of IT departments, it creates potential vulnerabilities. These unsanctioned applications may lack the robust security measures implemented by official tools, exposing sensitive data to breaches and unauthorized access. The decentralized nature of Shadow IT makes it challenging for organizations to enforce consistent security policies, leaving them susceptible to data leaks and cyber threats.

Another critical risk is the loss of control over organizational data. Unmonitored usage of SaaS applications outside of approved channels results in a fragmented landscape where IT departments lack visibility into the tools being employed. This lack of control increases the likelihood of data leakage, as employees may inadvertently share sensitive information in unsecured environments. Moreover, the dispersed adoption of SaaS applications can hinder compliance efforts. Organizations may unknowingly violate industry regulations or internal policies, leading to legal consequences and reputational damage.

Navigating the Complexities: SaaS Management Platforms

SaaS Management Platforms have emerged as a crucial tool to address the challenges associated with the adoption and ongoing management of SaaS cloud applications. These platforms offer centralized control, visibility, and automation to optimize the use of SaaS applications while mitigating risks.

SaaS Management Platforms provide the following key features:

• License Optimization: SaaS Management Platforms offer insights into license usage, enabling organizations to identify and reallocate unused licenses, resulting in significant cost savings.
• Security Monitoring: They enhance security by monitoring in-app risks such (2FA), users’ privileges and infrequent password changes.
• Usage Analytics: Visibility into user behavior and application usage empowers organizations to make informed decisions about resource allocation and application selection.
• Integration Management: Streamlining the integration process, providing a centralized hub for onboarding, offboarding, and configuring SaaS applications.
• Cost Tracking and Forecasting: These platforms assist organizations in tracking expenses, forecasting future costs, and optimizing spending on SaaS subscriptions.
• User Lifecycle Management: SaaS Management Platforms can automate user provisioning and de-provisioning, ensuring efficient onboarding processes and immediate access revocation for departing employees.

The adoption of SaaS cloud applications has undeniably transformed the corporate landscape, providing organizations with unprecedented flexibility and scalability. However, the complexity of managing multiple SaaS applications across an organization and the risks associated with these technologies necessitate a proactive and vigilant solutions. Organizations that use SaaS Management Platforms experienced up to 33% reduction in unused licenses and 400% return on investment with the dramatic decrease in security incidents related to third-party applications.