Step-by-step guide to audit your tech stack, consolidate redundant tools, and cut software costs without losing functionality.
Tech Stack Audit: How to Eliminate Software Bloat and Cut Costs by 20%
How many software subscriptions does your company have?
If you had to guess, you'd probably be wrong by 40%.
The average company with 50-200 employees has over 100 SaaS subscriptions. Most don't know about half of them. And studies show 30-40% of software licenses go unused.
Here's how to find out what you're actually paying for, eliminate the waste, and consolidate into a stack that actually works.
What is Software Bloat?
Software bloat happens gradually:
- Year 1: Marketing buys Mailchimp for emails
- Year 2: Sales buys HubSpot for CRM (which also does email)
- Year 3: Someone signs up for ConvertKit for a specific campaign
- Year 4: New CMO brings in Klaviyo
- Year 5: You're paying for 4 email platforms
Nobody made a bad decision. Everyone was solving a problem. But nobody was looking at the whole picture.
Common symptoms of software bloat:
- Multiple tools doing the same thing
- Data stuck in silos (doesn't flow between systems)
- "Let me check [tool]" takes 5 minutes to figure out which tool
- Licenses for people who left months ago
- "That's the old system, but some people still use it"
The Real Cost of Software Bloat
Direct costs are just the beginning:
Direct Costs
| Company Size |
Typical SaaS Spend |
Waste (30%) |
| 10-25 employees |
$50K-100K/year |
$15K-30K |
| 25-50 employees |
$100K-200K/year |
$30K-60K |
| 50-100 employees |
$200K-500K/year |
$60K-150K |
| 100-200 employees |
$500K-1M/year |
$150K-300K |
Hidden Costs
Context switching: Average employee uses 9 apps daily, switching 1,100 times. Each switch costs 20+ minutes of focus.
Training: Multiple tools = multiple training requirements = higher onboarding cost.
Integration maintenance: Each connection between tools needs maintaining. 5 tools might need 10 integrations. 15 tools need 105.
Data quality: Same data in multiple systems = different versions of truth. Someone's always wrong.
Security risk: Each tool is a potential breach point. More tools = more attack surface.
The Tech Stack Audit Process
Phase 1: Discovery (Week 1)
Goal: Know what you have.
Step 1: Pull financial data
- Export credit card statements (last 12 months)
- Pull accounts payable records
- Check expense reports for individual subscriptions
- Search email for receipts and renewals
Step 2: Survey the team
Send a simple survey:
- What software tools do you use daily?
- What tools do you use weekly?
- What tools do you pay for personally for work?
- What tools frustrate you most?
- What tools could you live without?
Step 3: Check IT systems
- SSO dashboard (if you have one)
- Google/Microsoft admin console
- Browser extension audits
- Mobile device management
Step 4: Create your inventory
Build a spreadsheet:
| Tool |
Vendor |
Cost |
Billing |
Users |
Owner |
Category |
Used Daily? |
| HubSpot |
HubSpot |
$800/mo |
Annual |
15 |
Marketing |
CRM |
Yes |
| Asana |
Asana |
$250/mo |
Monthly |
45 |
PMO |
Project Mgmt |
Yes |
| Zoom |
Zoom |
$150/mo |
Annual |
50 |
IT |
Video |
Yes |
Phase 2: Analysis (Week 2)
Goal: Understand what's working and what's not.
Step 1: Categorize everything
Common categories:
- Communication (Slack, email, video)
- Project management
- CRM / Sales
- Marketing automation
- Finance / Accounting
- HR / People
- Development tools
- Design tools
- Analytics
- Security
- Productivity
- Document management
Step 2: Find overlaps
Look for multiple tools in same category:
| Category |
Tools Found |
Overlap? |
| CRM |
HubSpot, Salesforce |
Yes - pick one |
| Project mgmt |
Asana, Monday, Trello |
Yes - consolidate |
| Video |
Zoom, Google Meet |
Maybe - one might be free |
| Email marketing |
Mailchimp, HubSpot |
Yes - HubSpot does this |
Step 3: Check utilization
For each tool, ask:
- How many licensed users vs. active users?
- What features are we paying for vs. using?
- How often is it actually used?
- Is there training or adoption issues?
Easy wins to look for:
- Licensed users who never log in
- Premium features you don't use
- Tools no one can remember signing up for
- Duplicate functionality across tools
Step 4: Map integrations
Draw how data flows between tools:
- CRM → Email marketing → Analytics
- Project management ← → Time tracking
- Finance → Expense management
Look for:
- Manual data entry between systems (should be automated)
- Data that doesn't flow anywhere (orphaned)
- Multiple tools with same data (which is source of truth?)
Phase 3: Decision Making (Week 3)
Goal: Decide what to keep, consolidate, and cut.
Decision Framework:
For each tool, place in one of four quadrants:
HIGH USAGE
|
KEEP & INVEST | KEEP
(core tools) | (working fine)
-------------------|-------------------
EVALUATE | CUT
(low use but | (waste)
needed?) |
|
LOW USAGE
Questions to ask:
Keep:
- Is this our source of truth for critical data?
- Would removing this break core workflows?
- Is the team trained and productive on this?
Cut:
- Does another tool already do this?
- Are we paying for unused licenses?
- Has usage dropped significantly?
Consolidate:
- Can one tool replace multiple?
- Is the cost of switching worth the savings?
- Will consolidation improve data flow?
Step 5: Build the target stack
Design your ideal state:
| Category |
Current Tools |
Target Tool |
Action |
| CRM |
HubSpot, Salesforce |
HubSpot |
Migrate SF → HubSpot |
| Project mgmt |
Asana, Trello |
Asana |
Migrate Trello → Asana |
| Email |
Mailchimp, HubSpot |
HubSpot |
Cancel Mailchimp |
| Video |
Zoom, Meet |
Meet |
Cancel Zoom (covered by Google) |
Phase 4: Implementation (Weeks 4-8)
Goal: Execute changes without disrupting operations.
Step 1: Quick wins first
Start with changes that are:
- Low risk (no data migration needed)
- High savings (expensive unused tools)
- Easy (just cancel or downgrade)
Examples:
- Remove unused user licenses
- Downgrade to lower tiers
- Cancel tools with direct replacements
- Stop auto-renewals on tools being evaluated
Step 2: Plan migrations carefully
For tools being consolidated:
Data migration plan
- What data needs to transfer?
- Who will do it?
- What's the rollback plan?
Training plan
- Who needs training on the consolidated tool?
- Create documentation
- Schedule sessions
Timeline
- Run tools in parallel initially
- Set a hard cutoff date
- Communicate to all affected users
Step 3: Update processes
Tools changing means processes changing:
- Update SOPs to reflect new tools
- Revise onboarding to remove old tool training
- Change integrations to point to new tools
The Consolidation Playbook
Here's what consolidation typically looks like by category:
CRM: Pick One
Common situation: HubSpot + Salesforce + spreadsheets
Solution: Pick based on needs and migrate everything
| Choose HubSpot If: |
Choose Salesforce If: |
| Marketing-led business |
Sales-led business |
| Under 50 sales users |
Enterprise scale |
| Want simplicity |
Need customization |
| Budget-conscious |
Complex sales process |
Project Management: Pick One
Common situation: Asana + Monday + Trello + Notion + spreadsheets
Solution: Standardize on one, enforce adoption
Typical choice: Asana or Monday for work management, Notion for wikis/docs
Communication: Limit to Two
Common situation: Slack + Teams + Email + WhatsApp + SMS
Solution: One async (Slack or Teams), one video (built-in or Zoom)
Don't let Teams creep in if you're a Slack shop (or vice versa).
Marketing Stack: Consolidate Around Your CRM
Common situation: 8 different marketing tools
Solution: Use your CRM's marketing features first, add point solutions only for gaps
HubSpot Marketing Hub can replace:
- Mailchimp (email)
- Buffer (social)
- Unbounce (landing pages)
- Various analytics tools
Productivity: Standardize on Suite
Common situation: Mix of Google and Microsoft products
Solution: Pick one ecosystem, go all-in
Google Workspace gives you:
- Gmail, Calendar, Drive, Docs, Sheets, Slides, Meet
Microsoft 365 gives you:
- Outlook, Calendar, OneDrive, Word, Excel, PowerPoint, Teams
Using both creates complexity. Pick one.
Maintaining Stack Discipline
Auditing once isn't enough. Software bloat grows back.
Procurement Policy
Create a simple policy:
- All new software requests go through [IT/Ops/Finance]
- Must document: problem it solves, alternatives considered, cost
- Check for overlap with existing tools before approving
- Quarterly review of all new additions
Annual Audit Cycle
| Frequency |
Activity |
| Monthly |
Review new subscriptions added |
| Quarterly |
Check utilization reports |
| Annually |
Full tech stack audit |
| At renewal |
Re-evaluate each tool |
Tool Owner Assignment
Every tool needs an owner responsible for:
- Justifying continued use
- Managing licenses/users
- Training and adoption
- Renewal decisions
No owner = candidate for elimination.
Expected Results
After a proper tech stack audit, companies typically see:
| Metric |
Typical Result |
| Direct cost reduction |
15-30% |
| Tools eliminated |
20-40% |
| Integration complexity |
-50% |
| Onboarding time |
-25% |
| Data quality issues |
-40% |
More importantly: Your team stops wasting time switching between tools and fighting with integrations.
Common Mistakes to Avoid
Mistake 1: Cutting too fast
Don't cancel tools mid-project or without warning. Give teams transition time and ensure data is migrated.
Mistake 2: Not getting buy-in
If you force a change without explaining why, people will just sign up for the old tool on a personal card. Communicate the reasoning.
Mistake 3: Ignoring the free tier creep
Free tools aren't tracked like paid ones. But they still fragment your data and create security risks. Include them in your audit.
Mistake 4: Optimizing for cost alone
The cheapest option isn't always the best. A tool that costs more but has better adoption and features might be the right choice.
Mistake 5: One-and-done
Software bloat grows back. Make auditing an ongoing discipline, not a one-time project.
Frequently Asked Questions
What is software bloat and how does it happen?
Software bloat occurs when companies accumulate multiple redundant tools over time without oversight. It typically happens gradually as different teams purchase similar tools independently to solve immediate problems, resulting in duplicate functionality, unused licenses, and fragmented data across systems.
How much can I realistically save with a tech stack audit?
Companies typically reduce SaaS costs by 15-30% through a proper audit, which translates to $15,000-$300,000 annually depending on company size. Beyond direct savings, you'll also reduce onboarding time by 25%, integration complexity by 50%, and data quality issues by 40%.
How do I find all the software subscriptions my company has?
Start by pulling 12 months of credit card statements and accounts payable records, then survey your team about which tools they use daily and weekly. Also check your SSO dashboard, Google/Microsoft admin console, and search email for receipts and renewal notifications to catch forgotten subscriptions.
Should I consolidate around one big platform or use multiple specialized tools?
For core functions like CRM and project management, pick one tool and enforce adoption. For productivity, standardize on one ecosystem (Google Workspace or Microsoft 365, not both). Add specialized tools only when your platform can't handle specific needs and the ROI justifies the added complexity.
How often should I audit my tech stack?
Conduct a full tech stack audit annually, with quarterly reviews of utilization reports and monthly checks on new subscriptions added. Also re-evaluate each tool at renewal time, and assign every tool an owner responsible for justifying continued use and managing licenses.
What's the biggest mistake companies make during tech stack audits?
Cutting tools too fast without proper data migration or team buy-in. This causes people to sign up for the old tool on personal cards or creates data loss. Give teams transition time, communicate the reasoning behind changes, and ensure data is properly migrated before canceling anything.
Your Tech Stack Audit Checklist
Week 1: Discovery
Week 2: Analysis
Week 3: Decisions
Weeks 4-8: Implementation
Ongoing
Cedar Operations helps companies build efficient operational infrastructure—including tech stack optimization. If you're drowning in tools and want help consolidating, let's audit together →
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