SaaS Stack Consolidation: How to Reduce Tool Sprawl and Save Money in 2026

The Hidden Cost of SaaS Sprawl

The average company now uses between 80-130 SaaS applications. Studies show that 30-40% of SaaS spend is wasted on unused licenses, duplicate tools, or forgotten subscriptions.

Signs You Need Consolidation

Financial Red Flags:

• SaaS spend growing faster than headcount
• Multiple tools with overlapping functionality
• Unused licenses across applications
• Surprise renewals for forgotten tools

Operational Red Flags:

• Data scattered across multiple systems
• Employees building manual workarounds
• Training burden for new employees

Conducting a SaaS Audit

Step 1: Discovery

Find all SaaS in use through:

• Finance and procurement records
• Expense reports
• SSO/identity provider logs
• Employee surveys

Step 2: Categorization

Group applications by function and identify overlaps:

• Communication tools
• Project management
• CRM systems
• Document management
• Design tools

Step 3: Usage Analysis

For each tool, determine:

• Active users vs licensed seats
• Feature utilization rates
• Business criticality

The Platform Approach

Consider platforms that cover multiple needs:

Notion can replace:

• Task management (Asana, Trello)
• Documentation (Confluence)
• Simple databases

HubSpot can replace:

• CRM
• Marketing automation
• Sales engagement

Execution Plan

Phase 1 (Quick Wins): Eliminate obvious duplicates and unused subscriptions.

Phase 2 (Strategic): Address major overlap areas with proper change management.

Phase 3 (Ongoing): Right-size licenses and implement governance.

Preventing Future Sprawl

• Require approval for new tools
• Maintain an approved application catalog
• Regular quarterly reviews
• Centralized renewal management

Conclusion

SaaS consolidation delivers cost savings, better data quality, improved productivity, and stronger security. Start with an audit and prioritize high-impact consolidations.