SaaS Discovery Save Your Business from Losing Millions of Dollars Annually: A Beginner’s Guide

What is SaaS discovery

Did you know the average company loses over $135,000 annually on unused software licenses? BetterCloud’s 2024 State of SaaSOps report highlights this jaw-dropping figure, underscoring why SaaS discovery is an essential strategy for smart businesses.

So, what is SaaS discovery? Think of it as your company’s inventory system for software. It’s about identifying all the applications your team uses and, more importantly, understanding how these tools affect your budget and productivity. But it’s more than just making a list—it’s about uncovering underused, redundant, or unsanctioned apps that quietly drain resources. Without this clarity, managing usage and controlling costs becomes a guessing game.

Consequently, SaaS discovery goes deeper. It helps streamline your software stack, reduce waste, and optimize spending. And as we all expect, having a clear view of software usage isn’t just helpful—it’s transformative. Ready to cut waste and take control? Let’s talk about SaaS discovery and SaaS management to see what it can mean for your business.

What is SaaS Discovery Tool?

SaaS discovery tool are designed to simplify and organize the often chaotic world of software usage. These tools help businesses uncover, track, and manage every SaaS application their teams use. With shadow IT—unsanctioned software purchased outside IT oversight—on the rise, SaaS discovery tools are essential for gaining critical SaaS visibility.

Using methods like browser extensions, API connectors, and financial record analysis, these tools act as SaaS inventory tools, building a centralized list of all applications. They reveal details about usage, licensing, and costs, helping businesses pinpoint inefficiencies. For instance, you might discover multiple apps doing the same job or subscriptions nobody uses. These insights empower IT teams to cut waste, streamline budgets, and maximize productivity.

As hybrid and remote work continue to shape the modern workplace, the need for SaaS visibility will only increase. IT teams face mounting pressure to manage sprawling software stacks while maintaining security. The next evolution of SaaS discovery tools may include predictive analytics, enabling businesses not just to monitor their current tools but to forecast future needs.

Why SaaS Asset Discovery Matters

SaaS asset discovery matters because it is the backbone of effective SaaS management. Without knowing which tools your organization uses, managing subscriptions, licenses, and user access becomes chaotic. Picture running your business blindfolded—shadow IT grows unchecked, waste piles up, and security risks increase.

It’s also crucial for SaaS compliance. With regulations like GDPR and HIPAA tightening data privacy standards, knowing your software landscape is no longer optional. SaaS asset discovery ensures every application meets security policies, industry standards, and regulatory requirements. By identifying where data is stored and how it’s managed, you can confidently align your tools with legal and internal compliance goals.

Beyond compliance, SaaS discovery drives SaaS usage optimization. It highlights underutilized or redundant applications, enabling you to cut waste and redirect budgets towards tools that deliver real value. For instance, comparing apps found via financial records with those accessed through single sign-on (SSO) systems can reveal unsanctioned software that bypasses IT oversight.

Struggling to keep up with ever-evolving security standards? Discover the key SaaS security requirements every business manager must understand to stay compliant and secure.

How SaaS Discovery Tools Work

SaaS discovery tools use a multi-pronged approach to uncover and catalogue all software applications—both those approved by IT and the shadow IT hiding under the radar. These tools don’t just stop at what’s visible. They dig deep to identify everything being used, who’s using it, and how often.

How do they do it? SaaS discovery tools leverage several methods. Now, let’s break down several techniques of SaaS discovery tools.

Single Sign-On (SSO) Platforms

These tools can identify applications that employees access through SSO, providing insights into the organization’s sanctioned SaaS. However, it’s worth noting that SSO platforms are only useful for applications that the organisation already knows about and are therefore not useful in uncovering shadow IT.

Financial Records

Analyzing financial records is a powerful way for SaaS discovery tools to reveal hidden software spending. These tools comb through expense reports and procurement platforms to identify SaaS purchases, highlighting details like app costs, purchasing departments, and even contact information for the buyer. This approach often uncovers shadow IT—apps bought directly by business units without IT’s oversight.

While effective, this method isn’t without its challenges. The data pulled from financial records can be messy, requiring manual review to make sense of it. Additionally, free apps or software miscategorized in expense reports might slip through the cracks.

API Connectors

API connectors are a fast and efficient way to gather key SaaS data, providing insights like the number of subscriptions purchased versus those actually assigned. This makes them a go-to solution for identifying opportunities to optimize spending and resource allocation. With just a quick configuration, they deliver actionable data that can streamline your SaaS management efforts.

However, API connectors have their limits. Like single sign-on (SSO) platforms, they only work for applications the organization is already aware of. They fall short when it comes to uncovering shadow SaaS—those unsanctioned tools flying under IT’s radar.

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Agents

Agents are a powerful tool for SaaS discovery, installed directly on individual devices to provide deep insights into software usage. They’re particularly effective for managing hybrid applications—those with both an installed component and an online version. Agents, however, aren’t just about cost savings—they also provide a bridge between traditional software management and modern SaaS ecosystems.

One of their standout benefits is identifying opportunities for cost optimization. For instance, agents can analyze user behavior to determine whether a user’s needs could be met with a less expensive subscription tier. 

Cloud Access Security Brokers (CASB)

By analyzing network traffic, Cloud Access Security Brokers (CASB) provide visibility into SaaS usage. These tools help organizations discover unsanctioned applications and address potential security and compliance risks. CASBs are particularly effective at identifying applications that bypass IT’s oversight, ensuring better control over your software environment.

However, CASBs do have limitations. They rely on network traffic analysis, which means they can’t detect SaaS usage when employees are off the corporate network, such as working remotely or using personal devices. Despite this drawback, CASBs ability to spotlight shadow SaaS and reduce regulatory and security vulnerabilities makes them a critical piece of any comprehensive IT strategy.

Browser Extensions

As a tool for SaaS discovery, browser extensions really help organizations identify all types of SaaS applications—known, unknown, paid, or free. Unlike some methods, browser extensions work seamlessly whether employees are on a corporate network or working remotely, making them ideal for today’s hybrid work environments.

These tools go beyond simply listing applications. They provide detailed insights, such as login activity and the amount of time spent in each app. This level of granularity helps organizations not only track software usage but also evaluate engagement and productivity.

Are your SaaS tools protected against today’s biggest threats? Learn how deep security SaaS can provide robust protection for your business.

Best Practices for SaaS Asset Discovery

In every best practice of SaaS asset discovery, it starts with a proactive strategy centred on IT asset management. So, please note: it’s not enough to just know what software your organization uses. You must understand how it’s used, who’s using it, and whether it aligns with business goals.

A comprehensive approach involves inventorying applications, assessing usage patterns, and evaluating security and compliance risks. Combining multiple discovery methods is key. For example, comparing applications found via financial records or browser extensions with those accessed through single sign-on (SSO) platforms can reveal tools bypassing IT oversight. Similarly, cross-referencing data from API connectors and browser extensions can help pinpoint users with individual licenses that could leverage corporate agreements.

To tackle SaaS shadow IT management effectively, platforms like Octobits are indispensable. Octobits provides an all-in-one SaaS management solution, offering a centralized dashboard with complete visibility over devices, billing, and reporting. With seamless integration into tools like Microsoft 365, Azure, and AWS, it simplifies IT operations while enhancing security and cutting costs. Its single-login system streamlines access, reducing friction for users and IT teams alike.

Regular audits are also essential. Periodically reviewing your SaaS inventory helps identify redundancies and underutilized tools, paving the way for cost savings. Looking ahead, automation and predictive analytics will become critical, and platforms like Octobits are already leading this evolution by combining real-time monitoring with actionable insights to future-proof SaaS environments.

Your Next Steps

Taking control of your SaaS ecosystem starts with small, manageable steps that make a big impact. With the right tools and approach, what feels overwhelming today can become a streamlined process tomorrow. Proactive SaaS discovery is your gateway to clarity, reduced waste, and a more efficient software stack.

Remember, SaaS discovery isn’t just about cutting costs. It’s about giving your business the agility to work smarter, strengthen security, and stay ahead of change. Take the first step today—streamline your SaaS management and unlock your organization’s full potential.

Article Sources

Octobits relies on primary sources to inform their work, such as white papers, government statistics, firsthand reporting, and interviews with industry professionals. Additionally, we use original research from other trusted publishers when relevant.

  • BetterCloud. (2024). State of SaaSOps 2024. BetterCloud. Retrieved from https://www.bettercloud.com/monitor/the-2024-state-of-saasops-report/
  • Már Guðmundsson, B., Berentsson, J., & Már Pétursson, V. (2023). SaaS Discovery : discovering methods to enumerate managed third-party SaaS platforms utilized by organizations with an online presence (G. Sigurðsson & S. Ingi Garðarsson, Eds.; p. 42) [PDF SaaS Discovery : discovering methods to enumerate managed third-party SaaS platforms utilized by organizations with an online presence]. http://hdl.handle.net/1946/43289
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