The True Cost of Software Underutilization: A Practical Guide to Smarter SaaS Spend Management

We hate to break it to you, but chances are, you’re paying for software you’re not using. And you’re not alone: according to the Flexera 2024 State of ITAM Report, more than 50% of SaaS licenses go unused within organizations, leading to millions in wasted spending annually.

Deloitte research shows enterprises waste up to 27% of their cloud and SaaS spend on idle resources.

Are your software investments and technology stack being used to their maximum potential, or are valuable features gathering dust, contributing to IT and MarTech stack bloat?

Why Software Underutilization Occurs

Software underutilization can happen for a variety of reasons. Siloed spending within departments often leads to redundant tools that go unnoticed. A lack of adoption leaves valuable software sitting unused, while organizational churn means that when employees leave, those remaining may not even know what tools are available. Additionally, a lack of skills to properly implement and distribute functionality prevents these tools from reaching the people who need them most. This all leads to wasted money and reduced productivity.

One significant consequence is IT sprawl. When teams independently adopt tools without a cohesive strategy, software stacks become overly complex, disjointed, and costly to manage. Without proper tech stack optimization, companies overspend significantly without realizing the intended value. Spendflo’s 2025 SaaS Tech Stack Report highlights that, on average, companies are managing over 300 SaaS tools, but only about half are regularly used.

Unused software licenses are a silent killer of efficiency. When employees leave or roles change, licenses often remain active, draining budgets unless monitored carefully.

On top of this, teams often aren’t aware of the full functionality of the tools they use. You could be investing heavily in advanced automation, AI-driven insights, and integration features—but if no one knows they exist, they go untapped. Software optimization is not just about buying the latest tools but about maximizing what you already own.

Many organizations adopt Salesforce for its core sales and marketing capabilities, such as managing contacts, leads, opportunities, and campaigns, but often underutilize more advanced features that could significantly boost efficiency and insight. Tools like Flow Builder (automation) are available within many Salesforce editions, while others like Einstein Analytics (AI-driven insights) and Pardot (B2B marketing automation) may require additional licensing. Yet, these powerful functionalities are frequently overlooked. A Salesforce study found that top-performing sales teams are 2.3x more likely to leverage AI capabilities than underperformers, underscoring the opportunity that comes with deeper feature adoption.

How Do We Solve This?

Now that we’ve had the hard conversation, it’s time to focus on solutions. The best way forward is to start with an audit, and with today’s technology, audits no longer need to be a tedious, manual process.

1. Use AI-Powered Software Audits

   Modern audit management software and AI-driven analytics tools allow companies to track feature-level adoption, identify dormant licenses, uncover overlapping tools, and even suggest consolidation opportunities.

   AI-enabled audits don’t just show what’s being used—they reveal whether you’re using it effectively, helping enterprises reduce software costs and optimize usage with precision.

   Gartner estimates that companies that do not manage their SaaS licenses actively will overspend by 25% or more on SaaS expenses alone.

2. Software ROI: Maximize What You Already Have

   After completing your audit, evaluate areas where usage is low or inconsistent. Are there key functionalities that could be useful? If functionality isn’t activated or users aren’t properly trained on it, it might as well not exist.

   Here’s where training, change management, and stronger IT-business collaboration come in. Ensure that:

   • Users are aware of available features.
   • Power users are enabled to train others.
   • Usage is tracked continuously (not just at renewal time).

   Software ROI improves dramatically when teams engage with the full functionality they’ve already paid for.

3. Trim or Reallocate SaaS Licenses You Don’t Need

   If a department isn’t using an app at all, consider dropping it. Or if you’re over-licensed, reclaim seats and redistribute them.

   The 2025 Mailmodo SaaS Stats Report found that companies waste nearly $135,000/year on unused SaaS licenses—often because deactivation or reallocation is overlooked. SaaS spend management isn’t just about negotiating better prices, it’s about constant rightsizing to actual business needs.

4. Look For New Uses and Cross-Functional Gains

   Maybe a tool isn’t being used by the team that bought it. Could it be repurposed?

   • A project management tool like Monday.com, originally purchased by Marketing, could also be valuable for HR onboarding workflows.
   • Support software could be leveraged by Field Ops, not just Customer Support.

   When you repurpose existing investments creatively, you engage in software asset management solutions that deliver higher returns without increasing spend.

5. Promote “Invest with Intention” As A Cultural Pillar

   Avoid treating software purchases as one-time events. Every tool must have a business case, a rollout plan, and ownership.

   Before investing, ask:

   • Who will use this—and how?
   • What existing tools might already solve for this need?
   • How will we track adoption and measure software ROI?
   • Who owns user adoption, training, and software optimization?

   IDC and Endava found that 50% of digital transformation initiatives fail to meet their intended outcomes, leading to wasted investments and unrealized software ROI.

Software investment success is not about owning more tools—it’s about maximizing usage and aligning technology decisions with real business value.

Companies with mature SaaS cost optimization strategies and committed software optimization practices remain lean, productive, and highly competitive, even with complex environments.

Conclusion

Underutilization isn’t just an IT issue or a business issue, it is a business challenge that exists in the disconnect between the two. The tools bought by the business must be implemented, optimized, and governed by IT—and vice versa. Success lies in shared responsibility. One actionable step? Make software utilization a shared KPI between IT and business stakeholders. That accountability drives better conversations, better audits, and, ultimately, better ROI.

If you suspect your company is struggling with underutilization but aren’t sure how to chart a path forward, we’re here to help. We love partnering with organizations to unlock hidden value and ensure maximum return from software assets through tech stack optimization.

Contact us so we can help you make the most of your technology investments.

Want to dive deeper into this topic? Check out our eBook: Get What You Pay For: Optimizing Your Software ROI

References

www2.deloitte.com/us/en/insights/industry/technology/technology-media-and-telecom-predictions/2025/tmt-predictions-finops-tools-help-lower-cloud-spending.html

www.spendflo.com/blog/key-takeaways-saas-tech-stack-report-2025

www.salesforce.com/news/stories/state-of-sales-5th-edition/

www.mailmodo.com/guides/saas-statistics/

www.gartner.com/en/information-technology/topics/digital-transformation

info.flexera.com/ITAM-REPORT-State-of-IT-Asset-Management