SaaS Wastage: The True Cost of Shelfware & Underutilized Software

SaaS shelfware – software that's been purchased but is no longer used – is quietly draining IT budgets. As tech stacks expand, so does the risk of paying for these tools that sit idle – something already happening with 21% of applications.

But shelfware is only part of the problem.

Even when subscriptions are active, many aren’t being used to their full potential. Our own data shows that an additional 45% of applications are underutilized – with organizations using less than half of the licenses they're paying for.

This combination of unused and underutilized tools contributes to a growing problem of SaaS wastage – one that procurement and finance teams can no longer afford to overlook.

What is SaaS wastage?

SaaS wastage refers to the unnecessary or inefficient spending on software – largely caused by unused licenses, overprovisioned seats, or unapproved tools that constitute Shadow IT.

But as SaaS stacks grow by an average of 7% year-on-year, the problem only intensifies.

More tools + trend of low usage = even more wasted spend.

It’s no surprise, then, that the volume of wastage has increased 12% in the past year alone, making this a rapidly escalating issue.

Which means that identifying and eliminating this waste is no longer optional – it’s critical for maintaining financial control, operational efficiency, and long-term scalability.

See exactly how much companies like yours are wasting on software. Download the full report to uncover the financial wastage broken down by company size, industry, and type of software.

Why better procurement visibility is key to reducing SaaS wastage

Tackling SaaS wastage effectively requires more than just identifying unused licenses – it demands a deeper understanding of how software is purchased, tracked, and utilized across the entire organization. This is where SaaS spend management platforms with procurement analytics capabilities come into play.

These solutions give finance and procurement teams real-time visibility into software usage, contract terms, renewal dates, and vendor performance – helping to prevent overbuying, detect redundant tools, and pinpoint underutilized licenses before they become wasted costs.

Tracking the right procurement metrics is also crucial – from license utilization rates to spend per employee – as this enables organizations to more reliably benchmark performance, monitor trends, and take proactive steps to optimize spend.

With clearer data, tighter controls, and smarter decision-making, companies can significantly reduce waste while maximizing the ROI of their SaaS investments.

The cost of unused SaaS subscriptions

The impact of SaaS wastage extends far beyond just dollars and cents. It can:

• Put organizations at risk of security vulnerabilities, as unmonitored tools bypass procurement controls.
• Cause operational inefficiencies, with teams working across multiple platforms that serve the same purpose.
• Negatively impact employee productivity and satisfaction, leaving users overwhelmed by redundant tools, unsupported on the platforms they do need, or stuck navigating bloated SaaS stacks that slow them down.

But while these can all have a detrimental impact, the financial toll is often the most acutely felt – especially as finance leaders face mounting pressure to keep costs under control and maximize ROI.

So, just how much are companies losing on unused and underutilized software?

The short answer: more than most realize.

Breaking down the real cost of shelfware and underutilized SaaS

From entirely unused software to partially tapped tools that deliver a fraction of their potential value, SaaS wastage is eroding budgets of every size.

And with spend increasing year-over-year, the financial impact is far from trivial.

In our latest report, we reveal exactly just how much is being wasted on everything from overprovisioned collaboration tools to unused enterprise software.

Our benchmarking data goes beyond the surface, pinpointing which software categories are driving the highest levels of inefficiency, while revealing the staggering amounts being lost annually across companies of all sizes and industries – insight that will equip you to identify exactly where the hidden drains on your budget lie.

What’s more, we provide actionable steps on how you can eliminate instances of wasted software spend, helping you achieve maximum cost savings while getting optimal value from your SaaS investments.