LastPass is expanding beyond password management into SaaS application monitoring, directly targeting the growing challenge of shadow IT and unauthorized AI tool usage in small and mid-sized businesses. By leveraging its existing browser extension infrastructure, LastPass aims to democratize SaaS monitoring technology previously available only to large enterprises with substantial security budgets. This move represents a strategic pivot to help organizations gain visibility into which cloud services their employees are using—particularly as AI adoption accelerates in workplace settings.
The big picture: LastPass has announced a new SaaS monitoring capability specifically designed for small to midsize enterprises struggling to track employee usage of unauthorized cloud applications and AI tools.
- The solution targets “shadow SaaS”—an umbrella term that encompasses both traditional shadow IT and the newer phenomenon of shadow AI, where employees adopt AI tools without company approval.
- By repurposing its browser extension that’s already well-positioned to observe web traffic, LastPass is entering the SaaS Identity and Access Management (IAM) market with a solution tailored for companies that can’t afford enterprise-grade alternatives.
Pricing details: The new capability comes as part of LastPass’s Business Max tier, priced at $9 per user per month—a $2 premium over its standard Business Edition tier.
- The price point positions LastPass as an affordable alternative to more complex SaaS monitoring solutions typically marketed to larger enterprises.
What they’re saying: LastPass chief product officer Don MacLennan acknowledges that SaaS monitoring technology itself isn’t new, but argues it has previously been inaccessible to mid-market companies.
- “Detecting which employees are accessing which applications is actually a solved problem,” MacLennan told ZDNET. “Except that it’s solved by really expensive and really complex technologies that a large enterprise would use, but that a mid-size enterprise can’t afford.”
Market positioning: LastPass is targeting organizations with employee counts ranging from 20 to several thousand—companies large enough to need SaaS management but too small to implement enterprise-scale solutions.
- According to MacLennan, the proliferation of SaaS applications across these organizations is precisely why they need robust password management and now, SaaS monitoring capabilities.
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