SaaS discovery is the process of identifying and inventorying all software-as-a-service (SaaS) applications used within an organization, including those adopted without IT approval, often referred to as shadow IT. This visibility is essential because businesses can’t protect what they don’t know exists. Discovery is foundational and the “identify” in the NIST cybersecurity framework: Identify, protect, detect, respond. Before securing SaaS, organizations must first understand their complete SaaS attack surface.

SaaS Discovery FAQs

What is SaaS Discovery?

SaaS discovery is the process of identifying all SaaS applications used within an organization, whether officially approved or not. It helps businesses uncover shadow IT (tools used without IT’s knowledge), track usage, manage costs, ensure security compliance, and optimize software investments. SaaS discovery tools or processes scan networks, analyze spending, or monitor logins to build a comprehensive inventory of active SaaS tools in use.

Why Is SaaS Discovery Important?

SaaS discovery is crucial because it provides organizations with full visibility into the software tools being used across the business, both sanctioned and unsanctioned.

In today’s decentralized, cloud-first environment, employees often sign up for SaaS apps without IT approval, leading to what’s known as “shadow IT.” This creates blind spots that increase security vulnerabilities, data compliance risks, and unnecessary software spend. Without discovery, it’s nearly impossible to manage user access, enforce security policies, or ensure that tools align with company standards and regulations, such as GDPR or SOC 2.

Beyond risk mitigation, SaaS discovery also empowers smarter decision-making and cost optimization. By identifying underused or redundant tools, businesses can consolidate services, reclaim unused licenses, and renegotiate contracts for better pricing. It also improves collaboration between departments by aligning tool usage with actual business needs.

SaaS discovery is a foundational step for organizations looking to stay secure, compliant, and efficient while navigating an ever-growing and fast-changing software landscape.

What Are the Risks of Not Doing SaaS Discovery?

Failing to perform SaaS discovery exposes organizations to a range of hidden risks, the most significant being security vulnerabilities. When employees use unapproved apps, often without IT’s knowledge, it creates shadow IT, which bypasses security protocols like single sign-on (SSO), multi-factor authentication (MFA), and data encryption.

These unmanaged apps can lead to data breaches, unauthorized access, and non-compliance with regulations such as GDPR, HIPAA, or SOC 2. Without visibility, there’s no way to monitor who has access to sensitive data or whether those apps are secure.

Beyond security, financial and operational inefficiencies quickly pile up. Organizations often pay for unused or redundant SaaS licenses without realizing it, wasting budget and complicating vendor management. Departments may adopt similar tools independently, leading to fragmented workflows and poor data integration.

Without a clear understanding of what software is in use, IT and procurement teams struggle to plan renewals, negotiate contracts, or support end users effectively. In the long run, the lack of SaaS discovery leads to higher costs, decreased productivity, and increased risk exposure.

How Often Should SaaS Discovery Be Done?

SaaS discovery should be an ongoing, continuous process rather than a one-time audit. Given how quickly new tools can be adopted, and often without IT involvement, regular monitoring is essential to maintain accurate visibility and control.

Ideally, organizations should use automated discovery tools that integrate with financial systems, SSO platforms, and network activity to provide real-time updates. At a minimum, formal reviews should be conducted monthly or quarterly to catch new applications, reassess usage, and align software inventory with security and compliance requirements.

SaaS Discovery Methods

There is a general method that most organizations follow for SaaS discovery, regardless of the tools used. It typically involves several key steps to uncover and manage all the SaaS applications in use:

• Data Collection. Gather information about all possible SaaS tools in use.
• Identification & Inventory. Build a complete, centralized list of SaaS applications.
• Assessment & Categorization. Understand what each app does and who’s using it.
• Stakeholder Review. Engage departments or teams for validation by determining if the tools are business-critical or redundant.
• Optimization & Action. Take any of the following steps based on what’s discovered: Eliminate duplicate or underused tools, consolidate licenses or negotiate better deals, ensure security policies are enforced (e.g., MFA, DLP), add essential apps to the official approved list.
• Continuous Monitoring. Keep the SaaS inventory up to date. Automate discovery using a dedicated SaaS management platform or regular audits.

Following these steps ensures organizations stay secure, cost-efficient, and agile while avoiding tool sprawl or compliance risks.

SaaS Discovery Best Practices

Here are some best practices for SaaS discovery that help ensure visibility, security, and efficiency across an organization:

Centralize SaaS Visibility

• Use a SaaS Management Platform (SMP) or integrate data from SSO, finance, and endpoint tools.
• Keep a real-time inventory of all apps, authorized and shadow IT.

Educate Teams on Shadow IT

• Make teams aware of the risks of using unsanctioned apps (security, compliance, cost).
• Encourage them to go through proper channels when evaluating new tools.

Leverage SSO and IAM Integrations

• Connect your SaaS discovery process to SSO providers (like Okta, Azure AD) to track logins.
• Map user access and reduce orphaned accounts.

Measure Usage, Not Just Presence

• Go beyond discovery, track how often tools are used, by whom, and for what.
• Reduce the use of underused or duplicate software.

Include Security and Compliance Checks

• Check whether discovered apps follow your data handling, access control, and MFA policies.
• Identify high-risk apps that access sensitive data.

Define a SaaS Procurement Policy

• Create a clear process for requesting, evaluating, and approving new apps.
• Include security review, integration needs, and licensing terms.

Schedule Regular Reviews

• Conduct quarterly or monthly audits since SaaS ecosystems change constantly.
• Use dashboards or automated alerts for newly discovered apps.

Collaborate Across Departments

• Involve IT, finance, legal, procurement, and team leads in reviewing tools.
• Break down silos so everyone has visibility into what’s in use and why.

Don’t Just Discover – Secure

• Go beyond identifying SaaS apps – pinpoint unsanctioned or high-risk applications and take action to secure them. Enforce policies, remediate access, and reduce exposure.
• Use discovery insights to strengthen your security posture, guide incident response, and support compliance efforts.

Does AppOmni Provide SaaS Discovery?

​Yes, AppOmni provides comprehensive SaaS discovery capabilities as part of its SaaS Security Posture Management (SSPM) platform. The platform offers automated discovery of both sanctioned and unsanctioned SaaS applications by integrating with identity providers (IdPs) like Okta. This integration allows AppOmni to identify all applications installed within the IdP environment, even those that may not be actively monitored, thereby helping organizations uncover potential blind spots in their SaaS ecosystem.

In addition to discovering applications, AppOmni’s platform provides continuous monitoring to detect misconfigurations, improper permissions, and risky third-party connections. This proactive approach enables security teams to prioritize and remediate high-risk issues efficiently, ensuring a secure and compliant SaaS environment.​

Read more about AppOmni’s SaaS Security Platform.