Picture this: You wake up after a wild night out. The details are fuzzy, the receipts don’t add up, and your head is pounding with the realization that you might have gone a little overboard. Now swap the cocktails for SaaS subscriptions and the bar tab for your IT budget. That’s where most companies are today — living through the consequences of a multi-year software binge. 

When SaaS Became the Open Bar 

The early 2020s were unlike anything the business world had ever seen. Entire workforces went remote almost overnight. The “digital transformation” initiatives that companies had been slow-walking suddenly had to happen yesterday.  

And SaaS vendors were ready. Need a way to chat with your team? There’s an app for that.  Need virtual whiteboards? Here are three. Need a fast way to onboard employees, launch a webinar, or analyze customer data? Sign here, click here, and you’re up and running. It was frictionless. It was exciting. And it felt like the only way to keep up.  

By Gartner’s count, SaaS spending hit $157 billion in 2020 alone — and growth hasn’t slowed much since. The average enterprise now runs hundreds of apps, many overlapping, many underused. For a while, this frenzy looked like innovation. Today, it looks more like a hangover. 

The Symptoms of SaaS Overload 

Every hangover comes with telltale signs. In the SaaS world, they look like this: 

• Duplicate tools: Two or three apps doing the same thing, but adopted by different departments. 

• Escalating bills: Every user license adds up. At scale, you’re looking at millions in recurring costs. 

• Employee fatigue: Switching between apps 50 times a day isn’t agility — it’s friction. 

• Security sprawl: More vendors, more logins, more vulnerabilities.

A 2023 report by Productiv put hard numbers to the problem: Companies use 371 SaaS apps on average, but fewer than half are active in any given month. Imagine paying for 10 streaming services and only watching Netflix. That’s the reality for corporate software stacks today. 

Why We All Said “Yes” 

Before we pile on too much regret, let’s acknowledge the obvious: the SaaS binge was inevitable due to several factors: 

• Remote work forced speed. Companies didn’t have time for careful vetting or procurement cycles. They needed solutions now. 

• Capital was cheap. With low interest rates and growth-first thinking, the cost of adding more tools barely registered. 

• Innovation was everywhere. Vendors churned out category after category of tools. Saying “no” felt like falling behind.

In that environment, buying more SaaS wasn’t reckless—it was rational. The problem is that most companies never stopped to clean up afterward. 

The True Cost of Too Much SaaS 

At first glance, more tools should mean more capability. But in practice, SaaS sprawl drags organizations down. 

• Lost productivity: Employees waste hours every week re-entering data, searching for the right platform, or learning yet another interface. 

• Financial waste: Paying for licenses that go unused is like leaving the lights on in an empty building — only far more expensive. 

• Data chaos: With information scattered across dozens of apps, insights get missed and errors creep in. 

• Increased risk: Every vendor adds legal, compliance and security overhead.

The hangover isn’t just a CFO problem — it’s a company-wide performance problem. 

The Detox: Fewer, Stronger Platforms 

Here’s the bright side: unlike last night’s whiskey shots, the SaaS hangover has a cure. It’s called consolidation. Instead of a sprawling mess of specialized apps, companies are shifting to horizontal platforms — tools designed to solve a wide range of problems across teams. 

Think: 

• Microsoft 365 or Google Workspace instead of five different chat, doc and cloud apps. 

• HubSpot instead of piecemeal CRM and marketing tools. 

• Notion instead of siloed project and knowledge management solutions.

The future isn’t “best-of-breed everything.” It’s “fewer, more powerful platforms.” 

Why Platforms Win 

The benefits of consolidation extend far beyond cutting costs: 

• Lower spend: Bundled pricing almost always beats a patchwork of separate licenses. 

• Simpler onboarding: Fewer tools mean employees get up to speed faster. 

• Seamless integration: Features within a platform are built to talk to each other. 

• Clearer visibility: Unified analytics give leaders a complete picture. 

• Stronger security: Fewer vendors, fewer vulnerabilities.

And here’s the kicker: Modern platforms aren’t compromises. They’ve matured into robust ecosystems that can rival or even outperform the niche tools they replace. 

Getting Started With Consolidation 

The idea of cutting hundreds of apps can feel overwhelming. But detoxing your stack doesn’t have to mean ripping everything out at once. 

Start small: 

• Audit usage. Identify what’s truly being used versus what’s collecting dust. 

• Spot overlaps. Two project management tools? Three survey apps? Time to choose. 

• Talk to teams. Find out which tools are beloved and which ones are burdens. 

• Prioritize broad platforms. Invest where you get the widest coverage. 

• Phase change carefully. Sunset tools in waves to avoid disrupting workflows.

Think of it less like a crash diet and more like mindful nutrition: Cut the junk, keep what fuels you and lean into balance. 

Lessons From Other Markets 

SaaS isn’t the first industry to go through consolidation. 

• Telecom: Remember when you needed separate devices for phone calls, music and GPS? Now it’s all on your smartphone. 

• Banking: Customers once had to juggle multiple institutions for checking, loans and investments. Now, full-service platforms dominate. 

• Retail: You don’t visit three shops to make dinner — you go to a supermarket.

Software is heading the same way. The companies that embrace consolidation early will be leaner, more efficient, and more resilient. 

A Different Metaphor: The Closet 

If you’ve ever cleaned out an overstuffed closet, you know the drill. At first, buying more clothes felt practical — one more shirt, a new pair of shoes, another jacket for “special occasions.” But eventually, the closet overflows. You can’t find what you need. Half your wardrobe goes unworn. The solution isn’t a bigger closet. It’s being intentional: keep the essentials, let go of the rest and organize what’s left. Your software stack is no different. 

Time to Clean House 

The SaaS party was necessary. It kept businesses afloat during an unprecedented crisis. But the aftermath is here, and the hangover is real. 

The companies that thrive in the next era won’t be the ones with the most apps. They’ll be the ones with the right apps — leaner stacks, stronger platforms, and better alignment between tools and strategy.  

So take stock. Trim the excess. Consolidate where it counts. Your budget, your employees and your IT team will thank you. Because in the end, business runs better without the headache.