business continuity. But after the cloud adoption phase came the phase many companies are in now, which is struggling with how to streamline cloud use and overcome cloud waste. Cloud waste equates to having more applications in your business network than you actually need. The symptoms are bloated cloud subscription costs and paying for duplicate apps that perform a function another app you already have can do. For example, a company paying for Microsoft 365 and also paying for a service like Zoom for video calls, are wasting money because within their M365 subscription is Teams, an app that can make video calls. How bad has the cloud waste problem become? A report from Blissfully, 2020 Annual SaaS Trends, shows that this is a growing problem. Here are some of the statistics from 2019 as compared to the year prior:
Cloud waste is nearly doubling year over year
Companies churn through 30% of their cloud apps
Companies on average have 3.6 duplicate apps
Orphaned app subscriptions rose almost 100% All of these statistics point to cloud use being out of hand for a majority of businesses and the need to streamline and optimize. Costs due to cloud waste can quickly add up, so it’s vital to get those costs under control sooner rather than later.
Steps for Reducing Cloud Waste & Excess SaaS Costs
A typical company wastes as much as 35% of its cloud budget. Contributing factors include paying for redundant apps, not policing shadow IT, and leaving resources unused.
Here are some ways you can stop the waste and bring your cloud costs down as a result.
Survey Employees About Cloud Use The first step in controlling your cloud use is to find out exactly what cloud apps all your employees are using in their workflows. Shadow IT, which means applications used without knowledge of a company or their IT team, can often go unchecked. A survey will help in a number of ways:
Identify shadow IT
Identify most and least used apps
Identify which apps employees find the most or least helpful
Identify redundancies and gaps in your cloud tools