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SaaS Application Sprawl and Shadow IT Spend Statistics 2026

Quick answer

Two named, differently built reports land on very different SaaS application counts for a similar population, and the gap between them is itself worth knowing before you trust either number alone. BetterCloud’s State of SaaS 2025 report, its 12th annual edition surveying nearly 600 IT professionals, found the average company uses 106 SaaS applications, down 5% year over year from 112 the prior year, an 18% reduction from 2022 to 2024. Nearly 60% of IT professionals in the same survey remain concerned about shadow IT risk specifically, despite that falling headline count.

Zylo’s 2026 SaaS Management Index, built from its own platform-discovered scan data rather than IT professionals’ self-reported estimates, counts a meaningfully higher 305 average applications (240 median) per organization. The two figures are not measuring the same thing, one is a survey estimate, the other a scanned actual count, and that gap is stronger, better-sourced evidence of how much shadow IT goes undercounted than either number would be alone.

What BetterCloud’s Own Survey Found

BetterCloud’s State of SaaS 2025 report, confirmed still carrying that exact title in its most recent edition (the prior “State of SaaSOps” name has not returned), surveyed nearly 600 IT professionals for its 12th annual edition. It found the average company uses 106 SaaS applications, down 5% year over year from 112 the prior year, and down 18% from 2022 to 2024. Nearly 60% of IT professionals surveyed remain concerned about shadow IT risk specifically, even as the headline application count they report keeps falling.

A falling self-reported count next to a rising concern level is worth sitting with before treating 106 as the real size of the problem. It may simply mean IT teams know less about their own footprint than the declining number suggests.

Why Zylo’s Count Runs Nearly Three Times Higher

Zylo’s 2026 SaaS Management Index counts a meaningfully higher 305 average applications (240 median) per organization, a different vendor, a different sample, and a different method entirely. BetterCloud’s number is IT professionals’ own estimate of what is in use. Zylo’s number comes from its own licensed-discovery platform scanning actual usage across its customer base, not asking anyone to remember or report it.

The honest move is not silently reconciling these two figures as if they measure the same thing. The gap between a self-reported estimate and a platform-scanned actual count is itself a legitimate, citable illustration of the shadow IT problem this page is named for, arguably a stronger version of the point than either number would make alone.

What the Estimate-Versus-Scan Gap Means for Your Own Count

If your own IT team’s estimate of your application count looks closer to BetterCloud’s 106 than Zylo’s 305, the gap above is a reason to treat that number as a floor, not a finished count. A scanned discovery pass, not another survey, is what closes the distance between an estimate and a real footprint.

Human + AI SDRs run on VA Horizon’s own private CRM, so booking more SaaS demos does not mean adding another unaccounted-for application to the count above.

The Numbers

1

The average company uses 106 SaaS applications, down 5% year over year from 112 the prior year, per BetterCloud’s State of SaaS 2025 report.

BetterCloud, State of SaaS 2025 Report (via PR Newswire)

2

That is an 18% reduction in average application count from 2022 to 2024, per the same report.

BetterCloud, State of SaaS 2025 Report (via PR Newswire)

3

Nearly 60% of IT professionals surveyed remain concerned about shadow IT risk specifically, even as the reported average application count keeps falling.

BetterCloud, State of SaaS 2025 Report (via PR Newswire)

4

BetterCloud’s survey covered nearly 600 IT professionals for its 12th annual edition, confirmed still titled State of SaaS as of its most recent release.

BetterCloud, State of SaaS 2025 Report (via PR Newswire)

5

Zylo’s 2026 SaaS Management Index counts a meaningfully higher 305 average applications (240 median) per organization, built from platform-scanned data rather than a self-reported estimate.

Zylo, 2026 SaaS Management Index

6

The roughly three-times gap between BetterCloud’s 106-application estimate and Zylo’s 305-application scanned count is itself evidence that shadow IT tends to be undercounted when it is only self-reported.

Zylo, 2026 SaaS Management Index

Sources

The external data in this article draws on the sources below. Figures described in the text as estimates or industry triangulations are directional and are not attributed to a single dataset.

FAQ

How many SaaS applications does the average company use?
It depends which report you trust. BetterCloud’s State of SaaS 2025 report puts the average at 106 applications, based on IT professionals’ own estimates. Zylo’s 2026 SaaS Management Index, built from platform-scanned data instead, counts 305 average applications (240 median) for a similar population.
Why do BetterCloud and Zylo report such different application counts?
Different methodology. BetterCloud surveys IT professionals for their own estimate of applications in use. Zylo’s figure comes from its own licensed-discovery platform scanning actual usage across its customer base, not asking anyone to recall or report it.
Is shadow IT risk getting better or worse?
The self-reported application count is falling, 5% year over year and 18% since 2022, per BetterCloud, but concern remains high at nearly 60% of IT professionals, and Zylo’s much higher scanned count suggests the real footprint may not be shrinking nearly as much as the self-reported number implies.
How large and how recent is BetterCloud’s survey?
Nearly 600 IT professionals, for the 12th annual edition of the report, confirmed still titled State of SaaS as of its most recent release.
Which number should a company trust for its own shadow IT risk?
A scanned or discovered count is more reliable than a self-reported estimate for finding unsanctioned applications, though a self-reported survey like BetterCloud’s is still useful for tracking year-over-year direction and sentiment.

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