What Is IT Asset Management (ITAM) for SaaS Applications — and Why It’s Critical for Security

Martin Snyder
Jun 24
3 min read

Updated: Jun 26

IT Asset Management (ITAM) for SaaS Applications

SaaS sprawl is no longer just a buzzword — it’s a daily reality for IT and security teams. One day, you’re approving a few popular cloud apps. The next, your stack is littered with dozens of shadow tools, orphaned accounts, and unused licenses you didn’t know existed.

That’s where IT Asset Management (ITAM) for SaaS becomes a security and operational necessity.

ITAM isn’t just a finance or procurement exercise. In a cloud-first, identity-driven world, ITAM for SaaS is about:

Security risk reduction
SaaS governance
Compliance alignment
Cost optimization

And most importantly, it’s about knowing what’s in your stack before it turns into your next breach headline.

What Is IT Asset Management for SaaS?

Traditional ITAM tracked physical hardware and on-premise software. But SaaS changed everything — now, anyone in your org can spin up a new app in minutes using nothing but an email address and OAuth.

SaaS ITAM requires:

Discovery of all SaaS apps — including shadow IT
User access tracking (who is using what)
License usage & cost optimization
Security controls like SSO, MFA, and access revocation
Vendor management and renewal alerts

According to Gartner, over 50% of IT spending will shift to SaaS in 2025 — but visibility remains dangerously low. That’s a governance blind spot no org can afford.

Why SaaS ITAM Is a Security Priority

Imagine this:

Your marketing team subscribes to a file-sharing tool without IT’s approval.
Your finance team is paying for three project management platforms used by different departments.
HR renewed a recruiting tool no one logged into in six months.

Sound familiar?

Studies show 30% of SaaS spend is wasted on redundant, unused, or unmanaged tools. Worse, unmanaged SaaS accounts are:

Prime targets for phishing, data leaks, and token misuse
Not integrated with identity providers or access policies
Invisible during security audits

This isn’t just a financial drain — it’s a risk exposure multiplier.

See our full guide on Shadow IT Detection to understand how invisible SaaS tools create real-world risk.

5 Steps to Effective ITAM for SaaS Security

1. Discover Everything in Your Stack

Use a tool like Waldo’s SaaS Discovery to uncover every app connected via OAuth, browser extension, or API — including apps installed by users outside of IT’s knowledge.

2. Centralize Oversight and Ownership

Stop chasing spreadsheets. Use a SaaS Management Platform to track ownership, user access, spend, and security posture across your entire application layer.

3. Track Usage and Reduce Waste

Cancel what’s not used. Combine overlapping tools. Waldo’s risk reports help you compare redundant apps by function, risk score, and business owner.

4. Enforce Security Policies at the SaaS Layer

Make sure SaaS tools follow enterprise policies: SSO, MFA, access expiration, and OAuth Risk Review. Treat test accounts and third-party integrations with the same scrutiny as production apps.

5. Plan Ahead for Renewals and Risk

Set auto-renewal alerts. Before you renew, check usage, compliance alignment, and contract terms. For apps handling regulated data (e.g., HIPAA or SOC 2), ensure SaaS Compliance is in place.