What is Shadow IT: Friend or Foe?

If you or your employees have ever used unauthorized apps, cloud services, or devices for work, you’ve experienced Shadow IT. While Shadow IT can improve productivity, it can also expose your organization to a variety of risks. Here’s everything you need to know.

What is Shadow IT?

Shadow IT refers to the use of applications, devices, or cloud services without the knowledge or approval of the IT department. This could mean using personal cloud storage to share files or installing an app on a company computer without IT’s consent.

Risks of Shadow IT

Employees using unapproved software or services can lead to vulnerabilities in the company’s network. Here are some of the primary risks:

1. Security Vulnerabilities: Using unauthorized apps expands your attack surface, increasing the likelihood of malware or ransomware attacks. Unsanctioned tools often lack robust security measures, putting sensitive data at risk.
2. Increased Spending: When employees independently purchase software, these expenses can quickly spiral out of control. Auto-renewals and overlapping applications are common, further draining resources.
3. Compliance Issues: Shadow IT makes it difficult to ensure all tools meet regulatory standards. Unauthorized software can lead to non-compliance with industry regulations like GDPR or HIPAA, risking hefty fines and damaging your reputation.

1. Data Loss and Lack of Control: Sensitive data may be stored outside IT-approved systems, making it difficult to retrieve or secure in case of an incident. This poses a significant risk of data loss.
2. Inefficiencies and Wasted Resources: Redundant subscriptions and overlapping tools waste resources. IT staff often spend valuable time managing and securing these unauthorized applications, detracting from strategic initiatives.

Mitigating Shadow IT Risks

To tackle the challenges posed by Shadow IT, consider these best practices:

• Establish Clear IT Policies and Guidelines: Outline acceptable software usage, define consequences for non-compliance, and communicate these policies regularly to employees.
• Educate Employees on Shadow IT Risks: Offer training sessions to explain the dangers of using unauthorized software and encourage employees to follow the right channels.
• Implement Monitoring and Detection Systems: Use tools like CloudEagle to gain visibility into your IT stack and receive alerts on unsanctioned software purchases.

• Provide Secure Alternatives: Maintain an inventory of sanctioned applications, creating a catalog that employees can easily access.
• Streamline the Procurement Process: Automate procurement workflows and educate employees on the proper channels for requesting tools.

The pervasiveness of Shadow IT in today’s workplaces cannot be ignored. Take proactive measures to identify and mitigate these risks before they impact your business. With CloudEagle, you can achieve complete visibility and control over your IT stack, ensuring a secure, compliant, and efficient environment. Don't let Shadow IT continue unchecked - book a demo with CloudEagle today and take the first step towards a secure, compliant, and efficient IT stack. Embrace proactive shadow IT management to safeguard your business's future success.