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The Great SaaS Hangover (and the Cure Nobody Is Talking About)

Chris Webber
Formstack

We've all been there.

The morning-after fog. The pounding headache. The light sensitivity. The creeping existential dread.

You had a few too many last night.

It's not entirely your fault. The playlist was amazing. The dance floor was hopping. The drinks were flowing. It happens to the best of us.

What follows varies from person to person — and culture to culture. Reddit threads offer thousands of post-party remedies: a scalding hot shower, a punishing gym session, a greasy breakfast, or — for the bold — the infamous "hair of the dog." Some of these might help. Most don't. At the end of the day, everyone comes to the same conclusion: the only surefire way to avoid a hangover is to drink less in the first place.

And that brings us to the SaaS industry.

The SaaS Party That Went Too Hard

2020 was the equivalent of a wedding with a top-shelf open bar. As businesses scrambled to adjust to remote work, digital transformation accelerated at breakneck speed. New software categories emerged overnight. Tech stacks ballooned with all sorts of SaaS apps solving ALL the problems — often with little oversight or long-term integration planning, and yes frequently a lot of duplicated functionality.

Gartner estimated global SaaS spending hit $157 billion in 2020, and it hasn't slowed much since. Companies layered tools upon tools, often with overlapping functionalities, all in the name of agility and speed.

But now the music's faded. The lights are on. Everyone from the CIO to the CFO is checking the bill.

Welcome to the Great SaaS Hangover.

What Is a SaaS Hangover?

A SaaS hangover is the result of years of unchecked software adoption. It's marked by:

  • Redundant tools doing the same job in slightly different ways.
  • Ballooning software costs where every employee is another $$$ per month.
  • Disjointed user experiences that frustrate employees and reduce productivity.
  • Security and compliance risks from managing too many vendors and endpoints.

In fact, a 2023 Productiv report found that companies use an average of 371 SaaS apps, yet only 47% are actively used in any given 30-day period. That's like stocking your fridge with five brands of orange juice and drinking just one.

The Cure: SaaS Consolidation Through Horizontal Platforms

Here's the good news: unlike a gin-fueled hangover, the SaaS hangover does have a cure — and it's surprisingly simple: Shrink your stack. Consolidate your spend. Invest in platforms, not point solutions.

The smartest companies today are shifting toward horizontal platforms — tools that solve broad business problems across departments, rather than hyper-specialized point solutions. Think Notion over five separate productivity apps. Think HubSpot over a scattered mix of CRM, email, and marketing tools. Think Microsoft 365, not a patchwork of document editors, cloud drives, and meeting apps.

Why It Works

  • Lower cost: Bundled pricing often beats à la carte tools.
  • Simpler onboarding: Fewer tools means faster adoption and less training.
  • Better integration: Native connections across features reduce data silos.
  • Improved visibility: Centralized platforms offer unified reporting and analytics.
  • Stronger security: One platform means fewer vendors to vet and monitor.

And here's the kicker: consolidation doesn't mean compromise. Modern horizontal platforms are more robust than ever, often outperforming niche competitors while offering broader utility.

You Wouldn't Build a Sandwich This Way

Let's end with a metaphor as simple as it is relatable: you wouldn't go to three different sandwich shops to assemble your lunch. One for the bread, one for the meat, one for the cheese? Ridiculous. You go to one deli. You get the combo. It's faster, cheaper, and it just makes sense.

So why do we treat our software stack any differently?

It's time to sober up.

The SaaS party was fun while it lasted — but now, it's time to clean house and consolidate. Your budget, your team, and your sanity will thank you.

Chris Webber is Director of Engineering at Formstack

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The Great SaaS Hangover (and the Cure Nobody Is Talking About)

Chris Webber
Formstack

We've all been there.

The morning-after fog. The pounding headache. The light sensitivity. The creeping existential dread.

You had a few too many last night.

It's not entirely your fault. The playlist was amazing. The dance floor was hopping. The drinks were flowing. It happens to the best of us.

What follows varies from person to person — and culture to culture. Reddit threads offer thousands of post-party remedies: a scalding hot shower, a punishing gym session, a greasy breakfast, or — for the bold — the infamous "hair of the dog." Some of these might help. Most don't. At the end of the day, everyone comes to the same conclusion: the only surefire way to avoid a hangover is to drink less in the first place.

And that brings us to the SaaS industry.

The SaaS Party That Went Too Hard

2020 was the equivalent of a wedding with a top-shelf open bar. As businesses scrambled to adjust to remote work, digital transformation accelerated at breakneck speed. New software categories emerged overnight. Tech stacks ballooned with all sorts of SaaS apps solving ALL the problems — often with little oversight or long-term integration planning, and yes frequently a lot of duplicated functionality.

Gartner estimated global SaaS spending hit $157 billion in 2020, and it hasn't slowed much since. Companies layered tools upon tools, often with overlapping functionalities, all in the name of agility and speed.

But now the music's faded. The lights are on. Everyone from the CIO to the CFO is checking the bill.

Welcome to the Great SaaS Hangover.

What Is a SaaS Hangover?

A SaaS hangover is the result of years of unchecked software adoption. It's marked by:

  • Redundant tools doing the same job in slightly different ways.
  • Ballooning software costs where every employee is another $$$ per month.
  • Disjointed user experiences that frustrate employees and reduce productivity.
  • Security and compliance risks from managing too many vendors and endpoints.

In fact, a 2023 Productiv report found that companies use an average of 371 SaaS apps, yet only 47% are actively used in any given 30-day period. That's like stocking your fridge with five brands of orange juice and drinking just one.

The Cure: SaaS Consolidation Through Horizontal Platforms

Here's the good news: unlike a gin-fueled hangover, the SaaS hangover does have a cure — and it's surprisingly simple: Shrink your stack. Consolidate your spend. Invest in platforms, not point solutions.

The smartest companies today are shifting toward horizontal platforms — tools that solve broad business problems across departments, rather than hyper-specialized point solutions. Think Notion over five separate productivity apps. Think HubSpot over a scattered mix of CRM, email, and marketing tools. Think Microsoft 365, not a patchwork of document editors, cloud drives, and meeting apps.

Why It Works

  • Lower cost: Bundled pricing often beats à la carte tools.
  • Simpler onboarding: Fewer tools means faster adoption and less training.
  • Better integration: Native connections across features reduce data silos.
  • Improved visibility: Centralized platforms offer unified reporting and analytics.
  • Stronger security: One platform means fewer vendors to vet and monitor.

And here's the kicker: consolidation doesn't mean compromise. Modern horizontal platforms are more robust than ever, often outperforming niche competitors while offering broader utility.

You Wouldn't Build a Sandwich This Way

Let's end with a metaphor as simple as it is relatable: you wouldn't go to three different sandwich shops to assemble your lunch. One for the bread, one for the meat, one for the cheese? Ridiculous. You go to one deli. You get the combo. It's faster, cheaper, and it just makes sense.

So why do we treat our software stack any differently?

It's time to sober up.

The SaaS party was fun while it lasted — but now, it's time to clean house and consolidate. Your budget, your team, and your sanity will thank you.

Chris Webber is Director of Engineering at Formstack

The Latest

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...

Seamless shopping is a basic demand of today's boundaryless consumer — one with little patience for friction, limited tolerance for disconnected experiences and minimal hesitation in switching brands. Customers expect intuitive, highly personalized experiences and the ability to move effortlessly across physical and digital channels within the same journey. Failure to deliver can cost dearly ...

If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...

In a 2026 survey conducted by Liquibase, the research found that 96.5% of organizations reported at least one AI or LLM interaction with their production databases, often through analytics and reporting, training pipelines, internal copilots, and AI generated SQL. Only a small fraction reported no interaction at all. That means the database is no longer a downstream system that AI "might" reach later. AI is already there ...

In many organizations, IT still operates as a reactive service provider. Systems are managed through fragmented tools, teams focus heavily on operational metrics, and business leaders often see IT as a necessary cost center rather than a strategic partner. Even well-run ITIL environments can struggle to bridge the gap between operational excellence and business impact. This is where the concept of ITIL+ comes in ...

UK IT leaders are reaching a critical inflection point in how they manage observability, according to research from LogicMonitor. As infrastructure complexity grows and AI adoption accelerates, fragmented monitoring environments are driving organizations to rethink their operational strategies and consolidate tools ...

For years, many infrastructure teams treated the edge as a deployment variation. It was seen as the same cloud model, only stretched outward: more devices, more gateways, more locations and a little more latency. That assumption is proving costly. The edge is not just another place to run workloads. It is a fundamentally different operating condition ...

AI can't fix broken data. CIOs who modernize revenue data governance unlock predictable growth-those who don't risk millions in failed AI investments. For decades, CIOs kept the lights on. Revenue was someone else's problem, owned by sales, led by the CRO, measured by finance. Those days are behind us ...

Over the past few years, organizations have made enormous strides in enabling remote and hybrid work. But the foundational technologies powering today's digital workplace were never designed for the volume, velocity, and complexity that is coming next. By 2026 and beyond, three forces — 5G, the metaverse, and edge AI — will fundamentally reshape how people connect, collaborate, and access enterprise resources ... The businesses that begin preparing now will gain a competitive head start. Those that wait will find themselves trying to secure environments that have already outgrown their architecture ...

Ask where enterprise AI is making its most decisive impact, and the answer might surprise you: not marketing, not finance, not customer experience. It's IT. Across three years of industry research conducted by Digitate, one constant holds true is that IT is both the testing ground and the proving ground for enterprise AI. Last year, that position only strengthened ...