The Hidden Costs of Unmanaged IT Assets: What You're Really Paying

From SaaS apps and software licenses to contracts and hardware like laptops and mobile devices, IT assets keep your organization running. But when left unmanaged, they silently drain budgets, increase security risks, and create compliance challenges.

Unused SaaS licenses, outdated apps, and shadow IT might seem minor issues, but together, they become an expensive problem that often goes unnoticed until it’s too late.

According to reports, 69% of organizations have experienced cyberattacks caused by unknown or unmanaged IT assets.

Now’s the time to take control. With a solution like CloudEagle.ai, you gain full visibility, eliminate waste, and ensure every IT asset delivers real value.

Let’s explore why an effective IT asset management strategy is required to address unmanaged IT assets and the right platform to do so.

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TL;DR

• Unused or duplicate licenses contribute to unnecessary SaaS spend, especially when departments purchase apps independently or fail to reassign licenses from ex-employees.
• Unapproved apps used by employees bypass IT governance, creating security risks, inefficiencies, and higher costs due to redundant app purchases.
• Manually tracking renewals often leads to missed deadlines, resulting in costly auto-renewals and missed opportunities for better pricing or upgrades.
• Unpatched devices or software expose organizations to cyber threats, with unaddressed vulnerabilities increasing the risk of data breaches or non-compliance.
• Unmanaged IT assets can lead to software licensing violations, missed audits, and severe penalties, as well as violations of data protection regulations.

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1. What Happens When You Don’t Manage Your IT Assets?

Unmanaged IT assets can lead to increased costs, security risks, and operational inefficiencies that disrupt productivity and compliance.

Companies now spend about $1,370 per employee each year on software, according to Gartner. But a big chunk of that is wasted. Around 25% of licenses go unused, and nearly half of Microsoft 365 users aren’t using the tools fully, says Block 64.

A. Wasted Spend on Unused or Duplicate Licenses

Without a centralized system to track SaaS usage, organizations often continue paying for licenses that no longer serve a purpose. For instance, if an employee leaves or switches roles, their licenses may go unused, yet remain active and billed.

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Additionally, different departments often purchase similar apps independently, leading to redundancy. This decentralized approach inflates software costs and prevents organizations from benefiting from volume-based discounts.

Over time, these small oversights contribute to SaaS sprawl—an uncontrolled expansion of software apps across the organization. As SaaS sprawl grows, managing and optimizing software usage becomes more challenging.

The overlapping subscriptions and inefficient usage drive up costs and create significant budget strain, leaving fewer resources available for more strategic investments.

Check out this inspiring success story of how CloudEagle.ai saves RingCentral $250K by consolidating duplicate apps.

B. Shadow IT Drives Up SaaS Spend

Shadow IT refers to the use of software and apps that aren’t approved or monitored by the IT team. Employees often sign up for free trials or purchase low-cost apps with their corporate email accounts, thinking they’re helping productivity. However, this creates fragmented, uncontrolled software environments.

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Such tools often duplicate functionality already available within approved applications, unnecessarily increasing costs. Shadow IT also bypasses governance, making it harder to secure company data, control spending, or comply with legal and regulatory frameworks.

Gartner has found that shadow IT accounts for 30 to 40% of IT spending in large enterprises. 

C. Missed Renewal Due to Manual Tracking

Tracking renewals manually, often through spreadsheets, scattered folders, or emails, makes it easy to miss important deadlines. This can result in auto-renewals for expensive or unused software, missed cancellation opportunities, and lost chances to negotiate better pricing or discounts.

Vendors often offer attractive pricing or enhanced features for early renewals, but without automation, organizations may miss out on these savings. Manual tracking also makes it difficult to align renewals with evolving business needs, leaving IT leaders locked into long-term contracts that no longer serve their organization’s goals.

D. Outdated or Unpatched Assets Create Security Vulnerabilities

Unmanaged IT assets, whether they are devices or software, are often left behind when it comes to critical security updates. When software or firmware isn’t regularly patched, it creates gaps in your security defenses. These gaps serve as weak points that cybercriminals can exploit, putting your entire organization at risk.

Hackers are always on the lookout for systems with known vulnerabilities, especially those that have not been updated. Even if just one device or application is unpatched, it can provide an entry point for attacks.

A Gartner study found that 69% of employees knowingly bypassed cybersecurity protocols within the year, despite being aware they were breaking the rules.

E. Former Employees Retaining Access to Apps

Without automated deprovisioning workflows, former employees may retain access to SaaS applications, file-sharing tools, or communication platforms. This is particularly risky in remote or hybrid work environments, where offboarding procedures are often overlooked.

Unauthorized access can lead to data leakage, sabotage, or unintentional mishandling of sensitive information. In addition to the security risks, organizations may also continue paying for licenses that are no longer being used, wasting budget and further exposing the organization.

F. Legal Penalties from Software Licensing Violations

Vendors frequently conduct audits to ensure their software is being used according to the agreed licensing terms. If your records are inaccurate or outdated, you risk being flagged for over-deployment, under-licensing, or misuse.

Penalties from failed audits can include hefty fines, forced purchases, and public scrutiny. Manual license tracking is prone to errors and can leave companies vulnerable. A strong IT asset management (ITAM) system is critical to avoid legal issues and maintain positive relationships with software providers.

G. Compliance Failures with Data Regulations

Industries like healthcare, finance, and education are bound by strict data privacy laws such as HIPAA, GDPR, and PCI-DSS. Unmanaged IT assets makes it difficult to ensure compliance with these regulations.

GDPR fines can be substantial, with penalties starting at €10 million or 2% of global turnover for minor breaches, and escalating to €20 million or 4% for more severe compliance violations.

When there is no clear visibility into where sensitive data is stored or who can access it, organizations are at risk of non-compliance. This lack of oversight can result in severe penalties and damage to the company’s reputation.

Proper IT asset management is key to mitigating these risks. It’s not just about operations—it’s essential for protecting sensitive data, avoiding legal issues, and maintaining customer trust.

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2. How CloudEagle.ai Addresses Your Unmanaged IT Assets?

CloudEagle.ai simplifies IT asset management by providing real-time visibility, automating license tracking, and streamlining procurement and compliance from a single platform.

A. Centralized IT Asset Visibility

CloudEagle.ai boasts an automated discovery engine that scans your entire IT environment to detect and catalog all SaaS apps. This gives IT teams a comprehensive, real-time view of the entire asset landscape, including previously untracked or shadow IT tools.

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By continuously scanning the network, the discovery engine ensures that no asset goes unnoticed, helping organizations maintain control over their tech stack.

“We believe in active portfolio management but not aggressive portfolio management.” ― Hendrith Vanlon Smith Jr, Investment Banker, Mayflower Plymouth

With CloudEagle.ai’s feature-level insights, organizations can dig deeper into how specific apps and features are being used. This capability provides valuable data on feature adoption and usage trends, allowing organizations to identify underused software or overpaid licenses.

By analyzing granular usage data, teams can make informed decisions about their unmanaged IT assets, like downgrading unnecessary licenses and eliminating apps that don’t add value.

B. Eliminating Shadow IT

CloudEagle.ai helps detect and eliminate Shadow IT by identifying and tracking all unapproved applications within the organization, effectively curbing SaaS sprawl.

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By monitoring user activity and integrating with SSO, financial tools, and even credit card transactions, CloudEagle.ai automatically flags any non-compliant software. This enables IT teams to regain control, reduce security risks, and ensure that all applications align with company policies.

C. License Management

CloudEagle.ai analyzes license usage and recommends upgrades or downgrades, so you’re never overpaying or under-licensed. It helps align licenses with real usage, cutting costs while ensuring the right access for every user. When employees leave or switch roles, CloudEagle.ai flags unused licenses so they can be reclaimed instead of wasted.

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CloudEagle.ai automatically identifies unused and underused SaaS applications. With its license reclamation workflows, you can efficiently reclaim and redistribute licenses, eliminating waste and optimizing resource allocation across teams.

Know how CloudEagle.ai saves RingCentral time and costs in license harvesting.

D. Renewal Management

CloudEagle.ai automates the entire renewal process, from tracking upcoming license renewals to managing approvals. This ensures renewals are handled on time, minimizing the risk of missing deadlines. Automated workflows alert teams at the right moments, allowing them to plan for contract renegotiations and avoid auto-renewals at higher rates.

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The platform’s renewal calendar provides a comprehensive view of all upcoming contract renewals, offering a centralized location for IT, finance, and procurement teams to stay on top of deadlines. This helps prevent unplanned spend and ensures no software contract is overlooked or allowed to lapse.

E. Contract Management

CloudEagle.ai creates a single, secure location for all your contracts. This eliminates the need for scattered files or manual tracking, ensuring that every contract’s key terms (pricing, duration, termination clauses, etc.) are easily accessible. A centralized repository enhances compliance by ensuring that you have the necessary documentation at your fingertips.

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CloudEagle.ai uses AI to extract critical metadata from contracts, such as renewal dates, pricing terms, and vendor obligations. This automatic extraction speeds up the contract review process and ensures that all relevant details are captured for easy reference, saving your team time and reducing human error.

F. Compliance and Audit Readiness

Compliance is an ongoing process, and CloudEagle.ai helps your organization stay compliant with internal policies and external regulations like ISO 27001, SOC 2 Type II, GDPR, HIPAA, and others. The platform continuously monitors your SaaS environment and alerts you to any discrepancies or non-compliant applications.

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Its automated tracking features ensure that all assets are properly licensed and that every action is logged for transparency. With detailed audit trails, real-time insights, and accurate usage data, CloudEagle.ai makes passing audits simpler and helps avoid fines or penalties related to non-compliance.

G. Cost and Usage Analytics

CloudEagle.ai’s analytics dashboard provides real-time insights into IT asset costs and usage patterns. With detailed breakdowns of software and hardware usage, organizations can easily identify areas where they’re overspending or underutilizing assets.

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These insights allow for better budget planning and informed decision-making on software procurement, helping organizations reduce waste, consolidate vendors, and negotiate better contract terms.

H. Seamless Integrations

CloudEagle.ai integrates seamlessly with over 500 enterprise applications, including HR systems, finance tools, and procurement platforms. By connecting with systems like Okta, Workday, and NetSuite, the platform automatically pulls in relevant data and syncs with your existing workflows. 

These integrations eliminate the need for manual data entry, reduce errors, and improve collaboration across departments. As a result, teams can manage IT assets more efficiently, with accurate, up-to-date information at their fingertips.

Iffy Walla, Founder and CEO of Edge, shares how CloudEagle.ai provided a clear, top-down view of their software portfolio, allowing them to track license usage, monitor app usage, and understand spending.

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3. Conclusion – Take Control Before the Costs Control You

Unmanaged IT assets can quickly lead to unnecessary costs, security risks, and compliance issues. From wasted licenses to missed renewals and shadow IT, the consequences of poor IT asset management are far-reaching. But with the right tool and strategy, you can take control of your IT assets before the costs spiral out of control.

In such cases, you should choose CloudEagle.ai, which simplifies IT asset management by giving you full visibility, automating important tasks, and helping you reduce costs. With real-time insights, smart license management, and automated renewals, it makes managing your IT assets easy, efficient, and cost-effective.

Don’t let your IT assets control your budget.

Take charge now with CloudEagle.ai and start optimizing your IT environment for better efficiency, cost savings, and compliance.

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