CloudEagle.ai for App Rationalization: Reduce SaaS Sprawl & Optimize Cost

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Organizations are increasingly relying on SaaS apps to run their operations, but many are struggling with SaaS sprawl, excessive subscriptions, underused apps, and rising costs.

According to reports, software spend has hit $8,800 per employee annually (up 27.5% YoY), with SaaS inflation at 12.5% and pricing models shifting due to AI adoption.

How can you effectively manage and control your organization's SaaS costs?

You need a SaaS management platform to identify, monitor, and optimize your portfolio by eliminating redundancies and unused apps.

CloudEagle.ai, a SaaS management and procurement platform, can help you optimize your SaaS ecosystem. The platform simplifies app rationalization, providing improved visibility and control over usage and spending.

Here's how CloudEagle.ai helps you tackle SaaS sprawl and realize potential cost savings.

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TL;DR

• CloudEagle.ai gives you centralized control over your SaaS apps, helping track usage, costs, and renewals in real-time for smarter decisions.
• The platform helps identify and eliminate redundant or underused apps, negotiate better vendor deals, and cut wasteful spending.
• With all contracts and vendor data in one place, you can streamline renewals, consolidate services, and secure better terms for long-term savings.
• It also helps ensure that all apps meet your organization's security and regulatory standards, reducing risks and improving compliance.
• CloudEagle.ai helps you make faster, data-driven decisions, allowing teams to allocate resources to the most critical apps for better productivity.

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Why should you care about app rationalization?

App rationalization is the process of reviewing and optimizing the software apps an organization uses. The goal is to remove redundant, underused, or unnecessary apps and ensure the remaining ones align with the organization's goals and add value.

This process typically includes:

• Identifying overlapping apps.
• Consolidating apps that serve similar functions.
• Removing or replacing underperforming or unused software.
• Negotiating better contracts with vendors.

App rationalization helps with:

• Reducing software spend by eliminating unnecessary or duplicate apps.
• Streamlining usage and avoiding wasting time on underused apps.
• Maintaining better control over your software, ensuring security and compliance.
• Focusing on apps that support your organizational goals, improving team efficiency.
• Reducing the number of apps you manage, makes it easier to consolidate vendor relationships and secure better deals.

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Challenges of SaaS sprawl and inefficient app management

As organizations adopt more SaaS apps, managing the growing portfolio becomes complex. Without proper control, SaaS sprawl leads to wasted resources and rising costs.

Here are the key challenges:

1. Lack of visibility into usage and spend: SaaS apps are scattered across teams, making it difficult to get a centralized view of usage and costs. Without this insight, organizations struggle to track spending, identify inefficiencies, and optimize their software portfolio.

“If what businesses want in 2025 is growth and stability, then scrutinizing software spend is essential. The more information you collect in the budgeting process, the more you'll spot opportunities for efficiency, ” Matt Barnard, VP Finance, Vertice.

2. Duplicate and redundant apps: Different departments often independently choose apps without coordination, leading to duplicate subscriptions for similar functions. These redundancies create unnecessary spending and inefficiencies.

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3. Complexity in managing contracts: When teams manage their own SaaS contracts, inconsistencies in terms, renewal dates, and pricing emerge. This lack of standardization prevents organizations from consolidating contracts or negotiating better deals, resulting in missed cost-saving opportunities.

4. Inefficient resource allocation: Without understanding which apps are truly driving value, companies waste resources on underutilized apps. These apps not only drain finances but also consume IT support, diverting attention from more strategic investments.

5. Security and compliance risks: Untracked or unmanaged apps may not meet security or compliance standards, exposing organizations to potential data breaches or regulatory violations. Keeping track of security requirements for each app becomes a major challenge.

How does CloudEagle.ai help with app rationalization?

CloudEagle.ai helps rationalize your SaaS stack by optimizing app usage, reducing costs, and giving organizations full control over their software investments by:

1. Centralized app inventory and usage tracking

CloudEagle.ai offers a centralized dashboard that provides a comprehensive view of all SaaS apps. With all relevant data in one place, IT and procurement teams can quickly assess which apps are being used effectively, which are underutilized, and which are unnecessary. This visibility streamlines decision-making and rationalizes SaaS management.

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2. Identifying redundant and underutilized apps

CloudEagle.ai analyzes usage patterns across your organization to identify duplicate, redundant, or underused apps. By detecting overlap and underutilization, it helps you take action to consolidate or eliminate these apps, reducing unnecessary costs and rationalizing your SaaS stack.

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For example, CloudEagle.ai might reveal that two departments are using similar project management apps. With this insight, you can eliminate or consolidate redundant subscriptions and save costs.

Learn how WeFunder identified they were spending twice on a single application using CloudEagle.ai and saved big.

3. Eliminating shadow IT

Shadow IT is a major cause of SaaS sprawl, and CloudEagle.ai solves this by providing complete visibility into all apps used across teams, both approved and unapproved. If employees are using unapproved apps, CloudEagle.ai flags them, allowing IT to take quick action and streamline app rationalization.

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Once these apps are identified, you can decide whether to remove them, replace them with safer options, or consolidate redundant apps. CloudEagle.ai also helps enforce policies to ensure that only approved apps are used in the organization.

4. Smart app categorization for optimization

CloudEagle.ai categorizes SaaS apps by function, usage, and value, helping you identify low-value apps to replace with more cost-effective options. This clearer view allows smarter purchasing decisions aligned with your goals.

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It also provides detailed insights into your SaaS spend, broken down by department or team, so you can prioritize high-value apps and cut inefficiencies. With data-driven insights, CloudEagle.ai enables procurement teams to optimize your SaaS budget and prioritize critical apps.

5. SaaS license management

Managing a large number of SaaS licenses can quickly become overwhelming, but CloudEagle.ai simplifies the process by providing full visibility into all your software licenses. It tracks how many licenses you have, how many are being used, and when they’re set to expire or renew—making it much easier to manage your entire license portfolio.

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CloudEagle.ai also helps identify underused or unused licenses, allowing you to reclaim them using license harvesting workflows and repurpose them for other employees or teams. This reduces waste and ensures that you're not paying for more licenses than you need.

Read this inspiring success story of how RingCentral saved $1.2M using CloudEagle.ai's license harvesting workflows.

6. SaaS contract management

Managing SaaS contracts can get complicated as companies grow. CloudEagle.ai simplifies this by offering a central hub to track and manage all your contracts. You can easily stay on top of renewal dates, pricing, and terms to avoid missing deadlines or getting stuck with unfavorable deals.

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With AI-powered metadata extraction, CloudEagle.ai pulls key details like start and end dates and renewal terms, setting up automatic reminders to help you avoid auto-renewals, negotiate better deals, and adjust software usage as needed.

7. Streamlined procurement

CloudEagle.ai streamlines the procurement process, which is essential for app rationalization. By centralizing and automating software acquisitions, it ensures that new apps are aligned with your organization’s current needs and goals.

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This process ensures that every new purchase is properly vetted and approved, helping avoid unnecessary apps, eliminate duplicates, and add only relevant, cost-effective apps. Additionally, CloudEagle.ai offers Slack-based workflows to help teams easily request, approve, and track software purchases directly in Slack.

8. Self-service app catalog

The self-service app catalog plays a crucial role in app rationalization by providing employees with a curated list of approved and relevant apps. This ensures that employees have access to apps that meet organizational standards and are already vetted for security, compliance, and value.

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By guiding employees toward the right apps, it prevents the introduction of redundant or unnecessary software, allowing for better consolidation of apps and reducing the overall number of apps in use across the organization.

9. Streamlined vendor management

CloudEagle.ai simplifies vendor management by giving you a comprehensive overview of your vendor relationships, contracts, and app usage. By tracking performance, renewals, and costs, you can easily identify underperforming or redundant vendors and apps.

This visibility helps you consolidate overlapping services and rationalize your SaaS stack, ensuring you're only paying for software that truly adds value. It also supports better contract negotiations, allowing you to optimize your SaaS spend and streamline your SaaS portfolio.

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Key benefits of CloudEagle.ai for app rationalization

CloudEagle.ai helps organizations with app rationalization with:

1. Reduced SaaS spend: CloudEagle.ai identifies and eliminates redundant apps, optimizes vendor contracts, and provides full visibility into usage and spending. With pricing insights, you can negotiate better deals and avoid overspending on non-essential apps.

2. Improved operational Efficiency: By centralizing all SaaS data, CloudEagle.ai simplifies app management, reduces time spent tracking subscriptions, and helps teams make quicker, informed decisions about app usage, renewals, and contracts.

3. Enhanced security and compliance posture: It ensures all apps meet internal policies and regulatory standards. It provides visibility into app access, data usage, and certifications, helping you stay compliant with regulations like ISO 27001, GDPR, SOC 2 Type II, etc.

4. Faster decision-making and resource allocation: CloudEagle.ai’s data-driven insights allow teams to quickly assess the value of each app, ensuring that resources are allocated to the most essential apps. This drives operational efficiency and optimizes software spend.

5. Simplified vendor management and negotiation: With centralized contracts, pricing, and vendor data, CloudEagle.ai makes it easier to manage relationships and negotiate better terms. It helps organizations consolidate vendors and track renewal schedules to secure long-term savings.

Learn how Eric Silver, Head of Procurement at RingCentral, leverages CloudEagle.ai for app rationalization, renewal benchmarks, team integration, and more.

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Conclusion

CloudEagle.ai helps organizations tackle SaaS sprawl and optimize software investments. With centralized visibility into app usage, costs, and renewals—integrating with over 500 SaaS apps—the platform provides insights to make smarter, cost-effective decisions.

Whether identifying duplicate apps, negotiating better contracts, or enforcing access policies, it helps teams control their SaaS portfolio and save costs in the long run.

Ready to take control of your SaaS portfolio?

Schedule a demo to see how CloudEagle.ai can help you rationalize your SaaS apps and achieve greater cost savings.

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