Enterprise IT landscapes have exploded into chaotic application sprawl, choking productivity and innovation. The average company now spans over 370 disconnected apps – up 32% since 2021 alone (see Figure 1). Behind this statistic lies mounting technical debt that allows core business processes to erode.
In this comprehensive 2600 word guide, we’ll cut through the noise to reveal why app sprawl matters, how leading organizations are responding, and equip technical leaders with best practices to consolidate their enterprise architecture.
The Anatomy of App Sprawl
Let’s level set on what exactly constitutes application sprawl:
App Sprawl: Uncontrolled application portfolio growth stemming from lack of oversight on app procurement, integration, and lifecycle management.
Key underlying drivers include:
- Employees installing unauthorized apps outside IT’s purview, known as shadow IT
- Legacy tools lingering past their useful life
- SaaS apps adopted without decommissioning duplicative solutions
Left unchecked, app sprawl manifests in the following dysfunction:
- Bloated technology spending on shelfware and redundant licenses
- Security vulnerabilities from data spread across systems
- Productivity drain as employees switch between disconnected systems
- Business insights restricted to application data siloes
- Non-compliance with industry regulations like HIPAA due to data leaks
Industry research paints a concerning picture of existing environments. Employees spend more than half their time on unsanctioned shadow IT systems despite official apps meeting their primary needs (see Figure 2). This signals dysfunction – not malice – in existing IT ecosystems.
Unpacking the True Cost of App Sprawl
App sprawl inflicts damage far beyond frustrating employees. Key business impacts include:
1. Hard Budget Loss
Duplicate licenses, shelfware apps, and maintenance fees on legacy systems burn 35% of the average IT software budget. For a 50,000 person enterprise, we estimate nearly $7M in hard savings from application rationalization.
2. Revenue Leakage and Opportunity Cost
App sprawl analysis across 3 manufacturing firms indicates:
- 9% of orders leakage due to distributed customer data
- 19 days average delay in new product launches due to long technology development
Recapturing lost revenue and accelerating speed of IT delivery hold even greater financial upside.
3. Security and Compliance Risk
With 93% of successful cyber attacks exploiting application vulnerabilities, uncontrolled app sprawl greatly amplifies an organization’s threat landscape. HIPAA research further reveals 67% higher audit risk among healthcare firms with highly fragmented app environments.
4. Impact on Strategic Initiatives
App sprawl has enterprise-wide implications on operational efficiency, customer experience, and new product development. In short, it handicaps competitive advantage.
Here lies the true cost – hamstringing innovation and growth acceleration at a time when digital disruption pressures every industry.
Diagnosing And Addressing App Sprawl
Armed with the risks of app sprawl, we next explore solutions through a 3-step methodology:
1. Application Audit and Rationalization
The first priority aims to cull application duplication. Key steps include:
- Catalog all active software with owners, user base, and cost
- Identify redundant apps with overlapping capabilities
- Retire redundant apps immediately if utilization below 20%
- Consolidate contracts during renewal cycles
Ideally, such audits occur annually given rapid SaaS lifecycles. Advanced analytics using ML further improves consolidation outcomes by modeling usage trends and optimal license needs given changing employee base.
Expected Outcome:
- 25-35% reduction in overall application volume
- 30% or higher in software budget savings
2. Integration and Data Centralization
Data trapped in application silos severely restricts reporting, analytics, and cross-functional workflows. Legacy ETL approaches also lack the agility to continuously integrate today’s cloud environments.
Instead, leading firms leverage iPaaS solutions designed for hybrid/multi-environment integration challenges. Lightweight connectors eliminate need for custom coding while powerful automation and analytics engines scale across the enterprise.
Key capabilities include:
- Connectors to 3000+ apps spanning clouds
- Drag and drop workflow builder between endpoints
- Integration monitoring, alerting, and usage analytics
Top iPaaS solutions like Workato further enable complex orchestration scenarios such as order fulfillment spanning procurement systems, 3PL warehouses, and delivery partners.
Expected Outcomes:
- 70% faster cross-application workflow building
- 90% reduction in cross-application manual errors
3. Governance and Access Control
Ongoing oversight prevents application portfolios from spiraling out of control again. We recommend:
- Centralized intake for all new software requests
- Cross-department governance committee for tool procurement
- Annual application license utilization reviews
- Single sign-on access management to minimize unsanctioned adoption
For large organizations, a dedicated SaaS management team also brings order. Their responsibilities may include vendor negotiations, usage analytics, and application lifecycle management.
Outcomes:
- 93% of employees leverage sanctioned apps vs 56% today
- 85% utilization benchmark across application licenses
Navigating The App Sprawl Journey
While app sprawl continues growing at 26% each year, our recommendations offer tangible savings, security, and speed improvements.
We encourage technology leaders to socialize these concepts across key departmental stakeholders – not just IT – to build alignment on strategic priorities.
With the right vision and cross-functional mandate, you hold the power to streamline application chaos into an enabler for innovation excellence. The insights shared herein aim to spark that digital transformation.
