Software Sprawl: Too Many Apps, Not Enough Connections

Most growing businesses now run dozens of apps. The problem isn’t the apps, it’s the data moving between them, and that nobody owns the connections

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Many business apps connected to one set of numbers

How Businesses Got Here

Ten years ago most businesses ran on one or two big systems. Today a typical growing business uses a separate app for almost everything: Xero or MYOB for the accounts, a job or field system, a CRM, rostering and payroll, stock, quoting, approvals, file sharing, and now AI tools. Each app does its own job well. The trouble is everything between them.

Customers, jobs, orders, hours and invoices have to get from one app to the next. Sometimes a built-in connector does it, sometimes a Zapier flow, often a person with a spreadsheet. Nobody is responsible for the whole picture, so details get typed twice, numbers stop matching, and a connection quietly fails until someone notices at month-end.

This is often called software sprawl, or SaaS sprawl. It isn’t a reason to stop using good software. It’s a reason to decide how your apps fit together, and who looks after the connections.

By the Numbers

What the research says, with the source and date for each figure.

36 apps

used on average by businesses with 50 or fewer staff

Counts only apps connected to single sign-on, so the real number is usually higher.

Source: Okta, Businesses at Work (SMB), 2024

58 apps

used on average by businesses with up to 500 staff

Same caveat: a minimum, not a full count.

Source: Okta, Businesses at Work (SMB), 2024

80 apps, up 11%

average for Australian companies, in a single year

Covers businesses of all sizes, not only small ones.

Source: Okta, Businesses at Work, 2024

10%

of Australian businesses actively collected or analysed their data in 2024–25

Plenty of apps; very little joined-up use of the data in them.

Source: ABS, Characteristics of Australian Business 2024–25 (released June 2026)

30%

of Australian small businesses said their 2025 technology spending improved profit

Spending on software doesn’t pay off by itself.

Source: CPA Australia, Asia-Pacific Small Business Survey, April 2026

~4 hours a week

lost to switching between apps and refocusing

Measured in large companies; a useful indication, not a small-business figure.

Source: Harvard Business Review, 2022

Why it’s getting harder, not easier

The apps keep changing underneath you. From 2 March 2026 Xero moved apps that connect to it onto paid developer plans, and on 1 September 2026 MYOB retired the broad permission many integrations relied on, so connections stopped syncing until an MYOB administrator reconnected them. New AI tools are adding still more apps, often bought on a credit card outside any plan.

Most of the app-count research comes from companies that sell software-management tools, and much of it is based on larger businesses, so treat the exact numbers as a guide. The direction is clear: more apps, and more data moving between them.

Signs of Software Sprawl

If several of these sound familiar, the joins between your apps need attention.

  • The same customer, job or supplier details are entered in two or three apps
  • Reports are rebuilt in Excel because no single app has all the numbers
  • A connector or Zapier flow stopped working and nobody noticed for weeks
  • Staff have bought apps on a credit card that nobody else knows about
  • You pay for several apps that do overlapping jobs
  • When someone leaves, nobody is sure which apps they could still log into

How Data Moves Between Your Apps Today

Most businesses use a mix of these. Each has a place; each has a way of breaking.

Retyping

Someone copies details from one app into another. Simple to start, but slow, error-prone, and it stops when that person is away.

Export and import

A spreadsheet is exported from one app and imported into another. Works for occasional moves, but formats drift and nobody checks what didn’t come across.

Built-in connectors

Many apps connect to Xero or MYOB out of the box. Use them when they fit. They often move some of the data, but not the jobs, tracking categories or rules you actually use.

No-code tools

Zapier, Make and similar tools join apps with ‘when this happens, do that’ rules. Great for simple steps; risky when a business process depends on dozens of flows nobody documented.

Custom API integrations

A connection built on each system’s official API, with logging and alerts. The most reliable option for important data, and the one that needs a clear owner.

A reporting layer

Data from several apps brought together in one place for reporting, so owners see one set of numbers without anyone building a spreadsheet.

What to Do About It

You don’t need fewer good apps. You need them to work as one system.

1

List every app and what it holds

Which apps you pay for, who uses them, and which customer, job, stock or money data lives in each. Most businesses find a few they had forgotten.

2

Decide which system is the master

For customers, jobs, items, staff and money, pick the one system where each is created and kept right. Everything else reads from it.

3

Fix the connections that matter

Use built-in connectors where they genuinely fit, and build proper integrations where they don’t, starting with the ones that cost the most time or cause the most errors.

4

Give the connections an owner

Someone responsible, with alerts when a sync fails and notes on what moves where. Platform changes like Xero’s and MYOB’s in 2026 are much easier when this is in place.

5

Cut what you don’t need

Once the picture is clear, retire apps that duplicate others and licences nobody uses.

Want the whole picture mapped for you? That is what our Process & Systems Audit does.

Common Questions

Software sprawl (or SaaS sprawl) is when a business ends up running many separate cloud apps, each bought for one job, without a plan for how they share data or who looks after them. The result is double entry, numbers that don’t match and connections that break unnoticed.

More than most owners think. Okta’s 2024 small business report found businesses with 50 or fewer staff used about 36 apps through its sign-on service, and up to 500 staff about 58. Those figures only count apps connected to single sign-on, so the real number is usually higher.

Usually both, in that order of thinking: first decide which system is the master for each kind of data, then connect the apps you keep properly, then retire the ones that duplicate others. Cutting apps without fixing the connections just moves the problem.

For simple, low-risk steps, often yes. For data your accounts, payroll or customers depend on, you want logging, error alerts and someone who owns it. That is where a proper integration, or a well-documented set of flows, makes the difference.

In businesses without an IT department it usually falls to the finance manager, the bookkeeper or whoever built the first connector, often by accident. It works better when one person or provider is clearly responsible, with alerts and written notes on what moves where.

It depends on how many apps are involved and how much needs building. We scope it first and give you a fixed quote after a free initial chat. If you want everything mapped first, the Process & Systems Audit is a fixed $5,000.

Related: business systems not talking to each other, systems integration, one source of truth and Xero and MYOB integration.

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