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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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For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

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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

I've spent a lot of time in the channel, and one thing I keep coming back to is this: a partner program is only as good as what it looks like in the field. Many programs look great on paper, but when a partner is in front of a customer navigating a complex hybrid environment or trying to make the case for AI-powered observability, the gap between what a vendor promises and what it actually delivers becomes very clear, very fast ...

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

For years, DevOps teams operated under a simple assumption: collect enough telemetry, and you can find and fix any problem. That assumption is breaking down. Modern enterprises now operate across microservices, hybrid cloud environments, APIs, Kubernetes, and highly automated delivery pipelines. Releases happen continuously, dependencies shift constantly, and failures spread faster than teams can diagnose them ...

New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...