THE CASE: Too Many Tools
Kunal's team has 3 project management tools (legacy, new, department-specific). 4 communication platforms. 2 document systems. None integrated. Result: Confusion, lost information, training overhead, security risk from shadow IT.
The Core Insight
Average company: 137 SaaS apps, 30% underutilized (Okta). Tool sprawl = inefficiency + security risk + training cost + integration hell. Consolidation saves 20-30% on SaaS spend.
The Evidence
137 apps average (Okta)
30% licenses underutilized (Gartner)
Consolidation: 20-30% savings (Flexera)
The Tool Audit Framework
Quarterly Tool Review
- Inventory: List every tool being used
- Usage data: Active users vs. licenses
- Overlap: Do multiple tools serve same purpose?
- Decision: Kill, consolidate, or keep
The Experiment
Pull usage data for all tools. Identify 3 with <50% utilization. Kill or consolidate at least 1. Measure savings.
Sources
- Okta. State of Enterprise SaaS. 2023.
- Gartner. SaaS License Optimization. 2023.
Key Takeaways
- Average company has 137 SaaS apps—30% underutilized
- Quarterly tool audits prevent sprawl
- Consolidation saves 20-30% on SaaS spend