AIMultiple ResearchAIMultiple Research

Manage App Sprawl & Increase Automation with 3 Solutions in '24

Table of contents
Solutions to App Sprawl

In 2023, the average SaaS application portfolio of a company grew 32% vs 2021, reaching 371 apps (Figure 1).

Figure 1: Companies, on average, use 371 different apps.1

However, when it comes to app engagement, more employees are engaging with shadow IT apps (54%), than those owned by their IT department (40%)2 (Figure 2). The takeaway is that employees are using too many disparate systems that can often overlap with each other. This phenomenon could be because:

  • Employees aren’t taking full advantage of existing tools already at their disposal
  • They are unaware of their company’s existing app stack.
Graph shows the engagement rate between shadow IT apps and those owned by companies' IT teams.
Figure 2: 54% of companies tech stack is shadow IT, outside of the IT teams jurisdiction. Source: Productiv

Poor app engagement results in lower ROI, suboptimal resource utilization, lost data and insights, and a reduced competitive edge.

Solutions to App Sprawl

1) iPaaS or enterprise automation platform

Given that most apps are cloud-based (Figure 3)3, the remedy for integrating applications, data, and processes across various cloud environments is an iPaaS (integration platform as a service) or enterprise automation platform.

Bar graph showing the use of multi-cloud apps being on the rise.
Figure 3: Companies are using more than one cloud to handle all their cloud-based apps. Source: Flexera

These platforms are not just for data integration, they also have automation capabilities.

Application consolidation

Apps with overlapping functionality can be consolidated to minimize the need for copy pasting across applications or the need to build data pipelines between applications

Application modernization

Legacy apps can be retired and consolidated in a small number of modern apps.

If you have questions or need help in finding vendors, reach us:

Find the Right Vendors
Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
Follow on

Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

To stay up-to-date on B2B tech & accelerate your enterprise:

Follow on

Next to Read

Comments

Your email address will not be published. All fields are required.

0 Comments