Three Tiers of SaaS Apps
The number of apps an organization uses often exceeds what IT can fully manage and govern. Gartner estimates that the average organization now uses over 1,000 SaaS apps, with only a fraction of those integrated with their Identity Provider (IdP). This sprawling ecosystem can be categorized into a practical three-tier model: fully managed business-critical apps, known but unmanaged apps, and the vast and risky wild west of Shadow IT, increasingly being described as business-led IT. While not an industry standard, this framework provides a clear way to understand the varying levels of SaaS visibility and management challenges organizations face, making it essential for robust security, governance, and operational efficiency.
Savvy brings clarity and control to this chaos, helping organizations address risks across all three tiers. But why does it matter? Let’s dive deeper into these tiers, their risks, and how Savvy transforms SaaS management into an identity-first security strategy.
Tier 1: Fully Managed – The Gold Standard
Tier 1 apps are the crown jewels of SaaS management. Integrated with your IdP and often managed through Identity Governance and Administration (IGA) platforms like SailPoint or Saviynt, these applications are the most secure. User lifecycle management, compliance, and centralized visibility ensure they operate as intended. Gartner highlights that fully managed apps reduce the risk of credential misuse by up to 80%, making them the gold standard for organizations prioritizing identity security.
Savvy enhances Tier 1 governance by validating that security investments like Single Sign-On SSO and Multi-Factor Authentication (MFA) are functioning optimally. This ensures your “official” apps stay as secure and efficient as possible.
Tier 2: Known but Unmanaged – The Gray Zone
Tier 2 represents apps that are visible to IT but remain outside the boundaries of centralized management. Due to technical constraints or integration challenges, these apps can’t be onboarded to your IdP or IGA. This lack of governance leads to gaps like inconsistent MFA enforcement, poor visibility into user access, and unreliable offboarding processes. According to Gartner, nearly 35% of security incidents stem from gaps in managing known but unmanageable apps.
Savvy bridges these gaps by bringing visibility and enforcing security hygiene for Tier 2 apps. Savvy ensures they remain part of your identity fabric even without full integration, minimizing risks and maintaining control.
Tier 3: The Wild West of SaaS – Shadow IT
The largest blind spot in any SaaS ecosystem lies in Tier 3: Shadow IT. These apps are often adopted independently by employees, bypassing IT entirely. Gartner reports that Shadow IT accounts for 40% of the SaaS apps used within organizations, creating an enormous attack surface. Risks include weak credential hygiene, unauthorized app-to-app connections that expose sensitive data across platforms, and an inability to offboard users once they leave the organization. These unseen interconnections amplify the attack surface, creating hidden vulnerabilities that traditional security tools miss.
Savvy shines in this tier, uncovering the full inventory of SaaS applications, identifying SSO bypasses, and remediating issues through automated workflows. By transforming the Wild West into a managed ecosystem, Savvy turns potential vulnerabilities into actionable insights.
The Cost of Neglecting SaaS Visibility: Financial and Operational Risks
The consequences of ignoring SaaS visibility are significant, both financially and operationally. Gartner estimates that organizations lose an average of $1.2 million annually due to inefficiencies and security breaches stemming from Shadow IT. These costs accumulate through poor offboarding, credential misuse, regulatory fines, and time-consuming manual remediation.
Operationally, the lack of visibility into Tier 2 and Tier 3 apps strains IT teams, forcing them to address blind spots reactively rather than proactively. Savvy’s ability to automate workflows and uncover hidden risks reduces these costs, providing organizations with a cost-effective approach to SaaS management.
Preparing for the Future of SaaS Security
SaaS is evolving, with emerging trends like AI-powered SaaS tools and app-to-app integrations creating new challenges. Gartner predicts that by 2027, app-to-app connections will account for 65% of SaaS-related breaches, highlighting the urgent need for visibility into these often-overlooked interdependencies. Without comprehensive oversight, a single compromised app can cascade risks across your entire SaaS ecosystem, turning minor vulnerabilities into major security incidents.
Savvy’s scalable and adaptive solutions prepare organizations for the future by providing continuous visibility, identifying emerging risks, and enabling proactive identity governance. Addressing all three tiers of SaaS today sets the foundation for secure and efficient operations in the years to come.
Why the Three Tiers Matter
Understanding and addressing these three SaaS tiers is critical for security, compliance, and operational efficiency. Each tier presents unique challenges, and traditional tools often fall short in providing comprehensive visibility and control.
Savvy’s identity-first approach ensures risks are addressed across all tiers:
- Tier 1: Validating IAM tools to secure managed apps.
- Tier 2: Extending visibility and control to unmanaged apps.
- Tier 3: Uncovering and mitigating Shadow IT with full inventory and remediation.
The three-tier structure of SaaS management highlights the complexity and challenges of today’s cloud-driven environments. From the gold standard of fully managed apps to the chaotic Shadow IT frontier, each tier demands tailored solutions to secure, govern, and optimize your SaaS ecosystem. Savvy brings unparalleled visibility and control, ensuring no app or risk goes unseen.
“Visibility is the first step to governance, and governance is the foundation of security.” – Gartner
With Savvy, your SaaS ecosystem becomes manageable, secure, and future-ready.
