You did everything you were supposed to.
You experimented with new tech. You grew your stack in the name of innovation and “smarter, not harder” ideology.
And yet, like a house filled with junk after years of buying the latest gadgets and novelty items, you’re now sitting in a wasteland of overlapping, irrelevant, and underutilized tools.
You’re not the only one. What started as a drive for innovation has led to inefficiency, complexity, and serious integration headaches for countless companies.
That’s why 2025 is shaping up to be the year of vendor consolidation—not just as a cost-cutting measure, but as a strategic move to boost agility, security, and scalability.
Why now? Because organizations are at a breaking point. Here’s how we now:
1. Budgets Are Tighter, Scrutiny Is Higher
In uncertain economic times, “do more with less” is more than a mantra—it’s a mandate. Finance teams are pushing back on SaaS sprawl, questioning redundant tools, and demanding ROI from every vendor. If a platform doesn’t provide clear value or integrate cleanly, it’s on the chopping block.
In a recent report by Better Cloud, more than half of survey respondents said budget pressure, along with too many underused apps and licenses, is driving their SaaS consolidation and spending cuts. In fact, the average number of SaaS tools for companies between 1,500 and 4,999 employees has decreased 18% in the last two years.
Reality check: Are you still paying for tools your employees no longer use—or worse, tools that do the same job as others?
2. IT Teams Are Drowning in Complexity
Every new tool adds integration work, compliance risk, and maintenance overhead. Multiply that by dozens (or hundreds) of apps, and it’s no wonder IT teams are burnt out.
It’s the latest epidemic facing the business world, according to CIO.com. In a 2024 article, more than half of IT workers (58%) said they felt overwhelmed by their daily responsibilities and tasks. Further, the average IT worker reported they only have the capacity to support 85% of the tickets they receive each day.
Vendor consolidation helps relieve this burden by reducing surface area and standardizing how data, workflows, and user access are managed across the business. To cope, 81% of organizations have already automated at least one SaaS management process, with 45% of
organizations automating more processes in the last year.
3. Security and Compliance Demand It
More vendors means more risk. Each additional integration is a potential vulnerability, and every disconnected tool increases the chance of data exposure or non-compliance. Shadow IT (unauthorized devices and SaaS apps used by employees) is even more dangerous, as it pervades corporate computers without IT’s awareness. The newest concern? Shadow AI—AI that employees find useful to do their jobs, but is unsanctioned by the company.
Consolidating vendors simplifies risk management, makes audits less painful, and gives security teams better visibility and control. In the last year, to better control SaaS costs and reduce shadow IT, 41% of organizations increased their IT department’s control of their organization’s SaaS apps. In addition, 33% of them consolidated redundant SaaS apps and accounts.
4. AI and Automation Work Better in Unified Environments
AI presents a huge opportunity for companies to streamline their operations and uncover insights. But fragmented systems create data silos that limit what AI can actually do.
Platforms that centralize data and workflows make it easier to apply AI meaningfully. This is because disconnected apps lead to fragmented data, limiting AI's ability to:
- Understand customer journeys
- Identify patterns and trends
- Deliver accurate predictions or recommendations
“The first challenge is integrating AI into a broader ecosystem that connects models to business processes, real-time data, and enterprise-grade security. Without this foundation, even the most advanced AI models will remain underutilized or misaligned with strategic objectives.”
- Salesforce
5. Users Are Tired of Learning Yet Another Tool
One of the most practical reasons for consolidating your tech? Avoiding the collective “not another tool” groan from employees. From clinicians and call center reps to HR managers and field techs, your people want to get their jobs done without logging into five different systems.
Consolidated platforms reduce training needs, improve adoption, and ultimately boost productivity. Even better, platforms that are easy for non-developers to use without learning complex code accelerate its use and keep teams from bogging down IT with requests.
6. Vendors Themselves Are Pivoting to Platforms
Even software providers are adapting. Instead of offering narrow point solutions, many are expanding into platforms that support multiple use cases. Tech giants like Salesforce, Adobe, and Oracle have built their platforms over time through various means. But smaller names with more niche tools have followed suit in recent years, including Atlassian, Miro, and Notion.
Platforms make it so you don’t have to manage 10 tools to solve 10 problems anymore. One well-designed platform can solve 10 problems with far less overhead.
Keep Reading: Is “platformization” just a buzz word—or the new imperative? Get the verdict in our latest blog.
A Platform is Greater Than the Sum of Its Parts
Organizations are shaping up their tech stacks in 2025. It’s time to stop chasing shiny new tools and start focusing on smarter, more sustainable tech ecosystems. Vendor consolidation isn’t about doing less—it’s about doing more with better, connected tools that actually work in harmony.
No matter your industry, you’re most likely facing rising complexity and tightening budgets. Perhaps it’s time to rethink your vendor landscape. What could one platform do for you versus three or more point solutions?
Formstack Streamline consolidates forms, workflows, document generation, and eSignatures into a single, no-code platform that integrates with the tools you already use. Let’s talk about how you can eliminate vendor bloat and accelerate your impact this year.
Request a demo or start your 14-day free trial today.
