Vendor Sprawl: The Unspoken Challenge for Enterprise

William Thackray, Operations Director, of AGT Computer Services

The bigger a business gets, the more technology it relies upon. Legacy systems build, data is siloed, and passwords forgotten as SaaS subscriptions snowball and tools are duplicated. IT management is no longer a matter of monitoring a handful of interconnected systems, but rather dozens of overlapping platforms and contracts, and that unnecessary complexity leads to waste and risk. Every forgotten app or permission is a data leak waiting to happen, yet digital transformation remains a pressing priority, so the problem can only grow.

Managing that scenario and finding ways to control and combat that potential for risk and cost is one of the most pressing corporate challenges. So, how can large organisations break free from vendor sprawl and create a more cohesive tech stack?

What is vendor sprawl?

Although the phrase “digital transformation” is relatively new, the process isn’t. Business tech has always evolved almost organically over time, with systems being updated, new tools – and more recently, subscriptions – being added as capabilities grow. Businesses have always upgraded, moved on, adopted what was new; the problem now is two-fold. Firstly, there is so much more tech, and it’s developing so much more quickly. Secondly, that it’s not being properly managed when it’s no longer used. And that’s when vendor sprawl happens.

The result is usually a complicated mess of overlapping functions, forgotten apps, redundant permissions, and unnecessary contracts. Without proper oversight, strategy, or offloading policies, companies are left facing unnecessary expense, failed compliance, inefficiencies, and significant security risks.

The primary risks of vendor sprawl

For enterprise, the financial implications of vendor sprawl matter, because when you’re working at scale, prices can escalate dramatically. But the wasted cost is perhaps not as important as it might be to a startup or SME, where funds are significantly more limited. Nonetheless, it’s still a consideration. More pressing, however, are the security and compliance risks.

Even a forgotten Facebook permission can expose a business to fraud, data leaks, and reputational damage. So, when more integral accounts are left dormant and unmanaged, the risk is magnified. Every unattended account is an entryway for cybercrime. Data theft, financial theft, identity theft, ransomware; they can all gain a footing through unmonitored accounts, compromising security and voiding insurance policies, leaving businesses exposed.

But it’s more than just the security risk; it exposes a lack of compliance. Regulations like the GDPR, Data Protection Act 2018, and the NIS Regulations 2018 demand that businesses properly monitor and audit their technology in order to protect their customer data. So, anything that’s not regularly used and properly managed is an instant liability. The lack of ownership and security monitoring creates real operational and legal risk.

So, what’s the answer?

How to take control of your tech infrastructure and end vendor sprawl

The difficulty at the moment is that so much tech is coming on to the market, and there’s a constant demand to stay current. But efficiency and productivity tools can only be of benefit if they work for your business. So, rather than having a barrage of different tools, the aim is to choose a selection that genuinely supports the business, building efficiency, resilience, and compliance into its core, while ensuring that unused tech and permissions are removed efficiently.

This tech consolidation can save money and enhance both efficiency and security protection while building a robust and sustainable operational infrastructure.

The three stages of tech consolidation

Complete a tech inventory

If you’re working at scale, you’ll probably need help to do this, whether bringing in external experts or investing in specialised tools. The aim is to understand exactly what tech tools, integrations, and subscriptions are currently linked to your business – both active and dormant – so that you can start with an accurate picture.

Rationalise

Once you know what you’ve got, you can rationalise it, breaking it down to the bare bones of what you actually need and use, and decommissioning everything else. For some businesses, this might mean a wholesale digital transformation, ripping everything out and starting from scratch. But for others, it’s the opportunity to consolidate what you have and need, removing duplicate functionality and defunct programmes, and stripping away redundant permissions in the process. Again, for larger companies with a complex tech stack, external support is often a good idea.

Implement guardrails

And then it’s time to make sure that the scenario doesn’t repeat itself. By initiating centralised procurement policies, automated permissions management, and a central control hub that provides a whole-business overview, you gain control over your tech assets. And when you have that cohesive management strategy, it becomes easier to manage compliance, security, and spend.

Losing control of your tech stack is more common than you might think. Businesses are being overwhelmed by technology because the recent advances have become too tempting to ignore. And that’s fine, as long as tech adoption and offloading are controlled. When your tech stack is scattered and disconnected, inefficiencies and problems follow, making consolidation a priority for all.