How Organizations Can Tame Shadow SaaS and SaaS Sprawl

Introduction

The rise of shadow SaaS and SaaS app sprawl impacts organizations’ security and productivity. Employees who adopt unauthorized apps and unmanaged SaaS applications to enhance their workflow unknowingly expand the attack surface and put account security at risk. This growing challenge demands attention from IT teams to strike a balance between enabling innovation and maintaining a strong SaaS security posture.

To tackle this issue, organizations need to implement a multi-faceted approach. This includes building a comprehensive SaaS inventory, leveraging browser extensions to capture data at the user level, and establishing centralized policies. Companies can better manage their SaaS ecosystem by focusing on user identity-centric issues like password reuse and lack of multi-factor authentication. The following sections will explore strategies to create an effective SaaS governance framework, enhance visibility into OAuth integrations, and streamline SSO implementation to tame shadow SaaS and reduce uncontrolled application sprawl.

The SaaS Sprawl Dilemma: Balancing Productivity and Security

The rise of Software as a Service (SaaS) has transformed the way organizations operate, offering numerous benefits while presenting unique challenges. As businesses navigate this landscape, they must strike a delicate balance between productivity and security.

Benefits of SaaS adoption

SaaS solutions have become increasingly popular due to their ability to enhance productivity and streamline operations. These cloud-based applications provide easy access to software from anywhere, enabling teams to work remotely and collaborate effectively. The scalability of SaaS platforms allows businesses to grow without the constraints of traditional software limitations.

One of the key advantages of SaaS is its cost-effectiveness. By utilizing shared environments, SaaS providers can offer their services at lower costs compared to traditional software models. This makes advanced software solutions accessible to small and medium-sized businesses that might otherwise find them prohibitively expensive.

Challenges of uncontrolled SaaS growth

While SaaS adoption brings numerous benefits, uncontrolled growth can lead to significant challenges. SaaS sprawl, the unmanaged proliferation of SaaS applications within an organization, can result in increased costs, security risks, and operational inefficiencies.

According to recent studies, 56% of apps in organizations are not managed by IT departments. This lack of oversight can lead to substantial financial waste, with more than 41% of organizations reporting that up to 19% of their total SaaS spend is on unused or underutilized licenses.

Security concerns are paramount in the SaaS sprawl dilemma. A survey revealed that 51% of organizations had experienced a ransomware attack targeting their SaaS data, with 52% of these attacks being successful. Additionally, 43% of respondents agreed that security misconfigurations lead to security incidents.

Finding the right balance

To address the SaaS sprawl dilemma, organizations must implement effective strategies to balance productivity and security. This involves creating a comprehensive SaaS inventory, implementing governance policies, and focusing on user identity-centric issues.

Organizations should leverage browser extensions to capture data at the user and browser level, providing better visibility into SaaS usage patterns. By monitoring user behavior and engagement trends, companies can identify potential security risks and optimize their SaaS portfolio.

Implementing strong authentication measures, such as multi-factor authentication (MFA), and addressing password reuse issues are crucial steps in enhancing security. Additionally, organizations should invest in customer education to ensure users understand the importance of security practices and can effectively utilize SaaS tools.

By striking the right balance between enabling innovation through SaaS adoption and maintaining a strong security posture, organizations can harness the full potential of SaaS while mitigating associated risks.

Building a Comprehensive SaaS Inventory

To effectively manage SaaS sprawl, organizations need to build a comprehensive inventory of their SaaS applications. This process involves automated discovery techniques, categorizing and prioritizing applications, and maintaining an up-to-date catalog.

Automated discovery techniques

Organizations can employ various methods to discover SaaS applications in use within their network. These techniques include:

Single sign-on (SSO) platforms: SSO data reveals when users last logged into applications, allowing companies to compare purchased and assigned licenses to logins for usage insights.
Financial records: Expense reports and connections to spend and procurement platforms can provide information on app costs and purchaser details.
API connectors: These allow retrieval of data from SaaS vendor portals, including assigned users and associated applications.
Browser extensions: Offering the most comprehensive discovery, browser extensions can detect any type of SaaS application, including known, unknown, paid, and free options
Cloud access security brokers (CASB): These tools analyze network traffic to discover SaaS applications.

Categorizing and prioritizing SaaS applications

Once discovered, organizations should categorize and prioritize their SaaS applications:

Create a comprehensive list of all SaaS applications, including details such as application name, vendor, and primary functions.
Analyze usage patterns to identify critical apps, underutilized ones, and potential redundancies.
Assess the level of permissions associated with each app and the type of data shared.
Consider historical app data, including past breaches and compliance with standards like SOC2, CCPA, and GDPR.
Evaluate the return on investment (ROI) for each application to determine its value to the organization.

Maintaining an up-to-date SaaS catalog

To ensure ongoing visibility and control over the SaaS environment, organizations should:

Implement a system of record, such as a SaaS management platform, to centralize information about all SaaS applications.
Compile and maintain contract data for each application.
Integrate SaaS apps for deeper utilization data.
Assign application owners to establish accountability.
Regularly review and update the catalog to reflect changes in usage patterns, new applications, and evolving security risks.

By following these steps, organizations can gain comprehensive visibility into their SaaS portfolio, minimize shadow IT, and make informed decisions about their SaaS investments.

Conclusion

The effective management of SaaS applications has a significant impact on an organization’s security and productivity. By building a comprehensive SaaS inventory, implementing governance policies, and focusing on user identity-centric issues such as password reuse and lack of multi-factor authentication, companies can better control their SaaS ecosystem. Capturing data at the user and browser level provides the best visibility, enabling organizations to make informed decisions about their SaaS investments and minimize security risks.

To wrap up, taming shadow SaaS and SaaS sprawl requires a multi-faceted approach that balances innovation with security. By establishing clear roles and responsibilities, creating approval workflows, and setting up monitoring processes, organizations can optimize their SaaS usage while maintaining a strong security posture. This holistic strategy empowers businesses to harness the full potential of SaaS applications while mitigating associated risks and ensuring long-term success in the digital landscape.

FAQs

How can an organization effectively implement a SaaS strategy? To effectively implement a SaaS strategy, an organization should first understand the specific needs of the business. This involves selecting and customizing the right SaaS solution, migrating existing data to the new system, training users comprehensively, and continuously monitoring and optimizing the system to ensure it meets business goals effectively.
What does SaaS sprawl mean? SaaS sprawl refers to the widespread proliferation of SaaS applications within an organization. This can include both sanctioned and unsanctioned (shadow IT) applications, resulting from decentralized purchasing by various departments, IT personnel, or individual employees.
What are the best practices for managing a SaaS company? Effective management of a SaaS company involves several key practices:

Identifying all SaaS applications used within the organization, which doesn’t necessarily require a complex IT asset management solution.
Understanding the usage data of these SaaS applications to assess their impact and utility.
Identifying and resolving redundancies and overlaps in SaaS application use.
Reducing unnecessary SaaS expenditures by cutting down on redundant or underutilized services.

What is Shadow SaaS? Shadow SaaS involves the use of unauthorized SaaS applications by employees within an organization without the knowledge or approval of the IT department. These applications are often adopted by employees to enhance productivity or address specific challenges but are not covered by the organization’s formal security and compliance protocols.