The R&D Budget You Didn’t Know You Had: Uncovering Hidden Millions in Your SaaS Portfolio

In the race to bring new treatments to market, every dollar matters. Pharmaceutical companies invest billions in research and development (R&D), yet many unknowingly waste millions through underutilized or redundant software applications.

Managing software in a pharmaceutical environment is anything but simple. Teams across the business—from research to clinical to commercial—rely on specialized tools to do high-stakes, high-impact work. But without clear visibility into what’s being used, by whom, and how effectively, software spend can quietly skyrocket. As a result, budgets that could be fueling innovation end up tied up in tools that aren’t delivering real value.

What If Your Next Big Discovery Isn’t in the Lab—But in Your SaaS Portfolio?

Consider this: What if you could uncover an entirely new R&D funding stream without increasing your existing budget? What if it’s already there, tied up in duplicate tools, excess licenses, or shelfware?

According to our 2025 SaaS Management Index, organizations waste an average of $21M per year on unused SaaS licenses. And in any given month, just 47.3% of purchased licenses are actually used—meaning more than half of what’s being paid for delivers no value. 

That’s millions of dollars that could be redirected toward funding new research and innovation.

Leading pharmaceutical companies have recognized this potential and taken action by investing in SaaS Management. At its core, SaaS Management is the discipline of discovering, optimizing, governing, and getting the most value from your software subscriptions. It gives IT, Procurement, and Finance teams a centralized view of every application in use: who’s using it, how much it costs, and whether it’s actually delivering value.

“We start with a clear understanding of our existing software landscape using tools like Zylo to uncover hidden applications and expenses, then we build governance processes tailored to manage these effectively.”

— Steve McKenzie, IT Supplier Management Lead, Zoetis

With that visibility, organizations can eliminate redundancy, rightsize licensing, reduce shadow IT, and ultimately free up budget that can be redirected toward strategic initiatives like R&D. 

With SaaS now a top OpEx line item, leading pharmaceutical companies are transforming the way they manage software. On average, organizations are managing 275 SaaS applications and spending $49M annually, making oversight more critical than ever.  

• AbbVie tackled SaaS waste with a data-driven, governance-first approach. By addressing shadow IT and driving license optimization, they canceled more than 60 unauthorized subscriptions and reduced expense spend by 47%. One standout win: they achieved $2.2M in cost avoidance by reclaiming and reallocating unused Salesforce licenses.
• Biogen implemented a structured SaaS Management program that includes a centralized platform for visibility, a cross-functional governance team, and a disciplined process for managing renewals. With 300-400 SaaS renewals per year and software now one of their largest OpEx items, Biogen needed a scalable, repeatable system to control spend. The program delivered fast results, unlocking $400,000 in savings almost immediately.

“We set a goal this year of saving a million dollars in renewals,” said Keith Sarbaugh, former VP of IT Infrastructure, Architecture, and Operations at Biogen. “I’m happy to say we’re well on track to hit that in our full first year of Zylo implementation.”

These examples demonstrate that substantial savings are achievable with a focused approach to SaaS Management.

The Hidden Risks Lurking in Your SaaS Environment

Unmanaged software introduces several risks:

• Unvetted applications increase the risk of noncompliance with regulations like HIPAA and GxP.​
• Teams often purchase similar software in silos, leading to overlap and wasted spend.
• Without visibility, you risk overpaying for underused licenses and losing leverage in renewals. SaaS vendors may not audit you, but they will upsell, renew at higher tiers, and push minimum commitments, especially if you don’t come to the table with usage data.

On average, lines of business own 70% of SaaS spend and half of all SaaS apps, while IT manages just a fraction. That fragmented ownership makes it nearly impossible to maintain consistent governance or ensure compliance across the board. 

Each of these risks above carries a significant price tag, both financially and operationally. And every dollar spent on unused software is a dollar not invested in clinical trials, drug development, or talent acquisition. Multiply that across thousands of apps, and the opportunity cost becomes massive. 

SaaS Management, The Hidden Accelerator for Pharma

Across Zylo’s pharmaceutical customers, one theme stands out: cost savings may be the initial win, but it’s far from the only one. While cost savings are significant—and often immediate—that’s just the beginning. The real value of SaaS Management emerges as organizations gain visibility, control, and alignment across their SaaS portfolios. 

With the right foundation in place, SaaS Management becomes a lever for operational excellence and agility. Pharmaceutical leaders are putting it into action by:

• Creating a single source of truth across thousands of apps
• Partnering across IT, Procurement, and Software Asset Management to drive better software decisions
• Empowering teams with the right tools (and only the right tools)
• Building governance and renewal discipline that keeps software spend optimized over time

Ready to Take Control of Your SaaS Portfolio?

Pharma organizations can’t afford blind spots when software spend is rising and every dollar counts. Zylo helps IT, Procurement, and SAM teams bring clarity to complexity, so you can ensure your software strategy keeps pace with your innovation goals.

Explore how Zylo can help you uncover savings, strengthen governance, and fuel your next wave of innovation.