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Why Your Business Should Simplify and Consolidate Its Tech Stack Cut the clutter and streamline your tech — this is the new catchphrase for security, productivity and long-term IT success.

By Apu Pavithran Edited by Micah Zimmerman

Key Takeaways

  • Simplify your tech stack to boost efficiency, reduce costs and enhance productivity.
  • Streamlined tools foster agility, innovation and better customer experiences across industries.
  • Regularly audit and integrate tech solutions to prevent waste and align with long-term goals.

Opinions expressed by Entrepreneur contributors are their own.

As businesses expand their tech stacks, the mounting complexity that comes with it becomes more of a hindrance than a help. Tools meant to enhance productivity are often overwhelming, with the average company juggling more than 300 SaaS applications. A bloated tech stack doesn't mean efficiency — it often signals wasted resources and reduced productivity. This sprawl of tools adds hidden costs, overlapping functionalities and a lack of integration, ultimately hindering the ability to thrive in a competitive market.

In the end, simplifying isn't just about cutting back — it's a strategic move to enhance efficiency, foster agility and stay ahead.

Related: How to Unify Your Tech Stack in 30 Days — and Save Money

The hidden costs of complexity: How too many tools are dragging you down

With 88% of organizations reporting an increase over the past year and 51% anticipating this trend to continue, the growing complexity of tech stacks is no longer just an IT problem. Its ripples can be felt across the entire organization, affecting productivity, collaboration and even customer experience.

Take employees, for instance. Studies show that employees spend up to 22% of their time navigating between different software applications. They constantly grapple with app fatigue — switching between multiple tools, manually transferring data or troubleshooting issues — consuming time that could otherwise be spent on meaningful work. Simpler systems allow employees to focus on high-value tasks instead of wasting time on tool navigation.

At the same time, as most customer interactions now exist in the digital space, fragmented customer data often leads to inconsistent interactions. A lack of seamless experience can drive customers to look for alternatives. Recognizing these challenges, 60% of CISOs are already keen on consolidating and optimizing their tools by 2025. They understand the fact that a tangled tech stack can impact different layers of businesses and are seeking ways to streamline the process to provide a better digital experience.

Furthermore, the resource costs that come with managing a bloated tech stack far exceed the advantages. Each tool brings licensing fees, custom integrations and maintenance drains that put a strain on both financial and human resources. This inefficiency is evident, as 42% of businesses admit they are paying for underutilized tech.

The solution? A centralized workflow that cuts through the chaos and empowers teams to focus on what truly drives growth.

Related: Streamlining Your Tech Stack to Unleash Maximum Efficiency

A leaner tech stack for the win

An extensive tech stack might sound sophisticated but may indicate inefficiency. On the other hand, a streamlined, well-integrated tech stack enhances efficiency and promotes innovation and resilience.

For instance, the banking industry can simplify operations by moving from traditional fragmented infrastructures to Banking-as-a-Service models, eliminating the need for expensive standalone systems. Integrating mainframes with hybrid cloud systems can greatly improve transaction performance. This way, banks can reach new markets faster with their services.

Similarly, the communication sector could also benefit from consolidating tools such as schedulers and automation scripts into a unified system. Relying on centralized monitoring and logging can help IT teams quickly identify and resolve issues, significantly reducing resolution time. This not only optimizes resource use but also ensures more reliable service delivery.

A leaner tech stack also means cost savings. The fewer the tools, the fewer the vendor contracts and maintenance requirements. In fact, 61% of businesses are already unifying their technology stacks and reducing vendor complexity by partnering with reliable vendors who offer strong compliance and integration capabilities for sustainable growth. Moreover, system integrations can greatly enhance performance; according to reports from Gartner and Forrester, organizations that implement integrations see a 40% decrease in operational costs and a 25% increase in productivity. Ultimately, a consolidated tech stack reflects simplicity, leaving more room for innovation.

Related: Your Online Customer Experience Is More Than a Buzzword — It's the Backbone of Your Business. Here's How to Optimize It.

Simplify, automate and scale

The future of IT success does not just hinge on the number of tools we possess and how well those tools work together. The core strategy is to choose platforms that serve more than one functionality, ensuring that each one brings clear value and integrates within the broader infrastructure.

For instance, with businesses relying on a multitude of devices and platforms, device management has become a critical area where unnecessary complexity could creep in. While a single device management solution could handle this diversity, many businesses knowingly or unknowingly purchase two or more solutions to manage separate OSes — like one for Apple and another for Windows.

Businesses can tackle this by choosing the right device management solution. For instance, Unified Endpoint Management (UEM) platforms are designed to manage a wide range of devices along with support for all major operating systems. Today, UEMs stand as a comprehensive solution for managing almost all endpoints that a business uses — from mobile devices and desktops to IoT, POS systems and rugged devices. Beyond device management, it also manages security and compliance and integrates with other IT tools and software to establish a smooth workflow between all IT components.

Achieving IT efficiency isn't just a set-it-and-forget-it task. It's an ongoing process that requires continuous attention. Businesses need to regularly audit their tools to ensure they're utilized effectively and integrate smoothly within the existing system. It's critical to avoid overlapping functionalities and ensure that every tool aligns with the long-term goals rather than merely adding more for quick fixes. Remember, efficiency doesn't come from piling on; it comes from pruning, refining and optimizing as you grow.

Apu Pavithran

Entrepreneur Leadership Network® Contributor

CEO

Apu Pavithran is the founder and CEO of Hexnode. Recognized in the IT management community as a consultant, speaker, and thought leader, Apu is passionate about entrepreneurship and spends significant time working with startups and empowering young entrepreneurs.

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