Understand Shadow IT: Definition & Implications| Stay Secure!
Shadow IT is an increasingly common term used in IT circles, but many business owners are unfamiliar with its meaning. For those who may not know, shadow IT refers to any technology that is used inside a company without the knowledge or approval of the organization's IT department. This article provides an overview of shadow IT, how it differs from cloud computing, and how businesses can protect themselves from the potential risks associated with its use. For business owners serious about protecting their data and managing their IT resources effectively, understanding shadow IT and related concepts is essential.
Table of Contents
- Introduction: What is Shadow IT?
- Static vs Dynamic Shadow IT
- Benefits and Drawbacks of Shadow IT
- Common Uses for Shadow IT
- Regulations and Governance
- Examples of Shadow IT Usage
- Security Implications of Shadow IT 8.Conclusion
- Introduction: What is Shadow IT?
Shadow IT is an often-overlooked concept that is becoming increasingly common in business environments. It refers to personal computing resources and applications in use by an employee or team, that have not been authorized or approved by the IT department. This includes both hardware and software products, such as independent email or communication services, online collaboration applications, and other third-party services.
Shadow IT can be a great asset to a business, as personnel may be able to leverage novel solutions and applications relatively quickly and without incurring large costs associated with official IT infrastructure. It can also be detrimental, however, as it can leave the organization vulnerable to security and privacy risks. This article will discuss what shadow IT is, its associated benefits and drawbacks, common uses, regulations, examples, and security implications.
- Static vs Dynamic Shadow IT
Shadow IT, or the unauthorized use of technology without the knowledge or approval of the IT department, is a real issue for many businesses. As the name implies, it refers to the use of technology without the IT department's consent, often outside of the company's officially sanctioned IT infrastructure. But what many don't realize is that there are actually two types of Shadow IT: static and dynamic.
Static Shadow IT refers to software that is downloaded and installed on the user's system. This software is not authorized by the IT department and may be used to circumvent technical solutions, budgetary constraints, or other policies and restrictions. Classic examples of static Shadow IT include the use of freeware for file sharing, using unofficial collaboration tools, or using a personal device such as a laptop or smartphone.
Dynamic Shadow IT, on the other hand, usually refers to the Section use of cloud-based services or web applications. These services are hosted on third-party systems and used to access company data or applications. In this case, the service is running on the cloud, and data is transferred between the service and the user's machine or device.
Dynamic Shadow IT is becoming increasingly more common, due to the ease of use and relatively low cost compared to traditional IT services. Many companies are encouraging its use to support a more agile process, maximize productivity, and to facilitate innovation amongst employees. Examples of dynamic Shadow IT include using email or calendar services, such as Google Apps and Microsoft Office 365, or online collaboration tools like Slack and Basecamp.
It's important for businesses to understand the difference between static and dynamic Shadow IT, and to examine the risks and potential benefits associated with each. This is the first step in determining whether either type of Shadow IT can be safely incorporated into a company's IT infrastructure.
- Benefits and Drawbacks of Shadow IT
Shadow IT has both advantages and disadvantages. On the plus side, allowing users to choose and use their own technology solutions can help an organization to innovate and move quickly. Shadow IT can enable users to find solutions to their own problems, without having to wait for central IT teams to respond. This agility can benefit the organization in many ways.
On the downside, there is always a risk associated with allowing users to bring their own solutions onto the organization’s IT systems. Access to these solutions can be hard to control since IT departments may not be aware of what individuals are doing. Furthermore, the user-selected technologies may not be as secure, reliable or compliant as enterprise-grade solutions. This can create additional risk to the organization, and can also lead to fragmentation of IT architectures, making support and integration much more challenging.
- Common Uses for Shadow IT
Shadow IT doesn’t only have harmful consequences; it can also be beneficial in certain circumstances. To better understand Shadow IT, it is important to recognize when its use is helpful and beneficial to an organization.
One use for Shadow IT is to increase business agility and speed. Shadow IT often allows projects to move fast and get launched quickly since they do not require corporate IT approval or infrastructure. Because of this, Shadow IT can be beneficial when organizations want to quickly develop and deploy small to medium sized projects.
This agility also allows an organization to test out ideas or conduct experiments with minimal cost and time invested. By releasing MVPs of applications or services to a small group of customers with rapid feedback cycles, an organization can quickly evaluate and refine its offerings and opinions.
Shadow IT can also allow certain data sets and information, such as customer data or sensitive financial information, to be accessed quicker and more easily. This not only helps data be more accessible to those who need it; it also helps by not overburdening the IT team.
One of the ways that Shadow IT has been beneficial is by allowing teams to more easily collaborate across countries and departments. By leveraging Shadow IT, teams are able to quickly and easily share documents or access applications shared among various departments. By making collaboration easier, Shadow IT can make an organization more agile and unified.
These are just a few of the common uses for Shadow IT. While Shadow IT has been criticized in the past, these examples show that it can be beneficial when used properly. It is important to understand and evaluate when Shadow IT can further the organization’s goals.
- Regulations and Governance
The use of Shadow IT is becoming increasingly available and pervasive in organizations of all sizes, but it’s critical for organizations to understand the regulatory and governance challenges posed by its usage. Because Shadow IT can bypass corporate IT governance and may involve the transmission of confidential data, IT departments and other stakeholders need to work together to ensure that Shadow IT is deployed in a secure and compliant manner.
In many cases, Shadow IT may involve the addition of a new cloud application to an existing architecture. These applications can provide the organization with cost and scalability benefits, but they may also introduce potential security and compliance risks if certain rules and regulations are not considered and managed. In addition, Shadow IT may involve cross-border data transmissions that require the organization to be compliant with the relevant foreign data privacy and other regulations, such as the EU's General Data Protection Regulation.
Organizations must also be aware of the risks posed by the “security gap” that can exist when new cloud applications are added to an existing architecture. If the existing architecture isn’t secure, for example, the new application could potentially be vulnerable to attack. IT departments and other stakeholders need to ensure that all applications, cloud-based or otherwise, are secure and adhere to the necessary privacy and security regulations.
Overall, the key takeaway for organizations when it comes to Shadow IT is to implement and enforce a strict governance framework. IT teams and other stakeholders need to closely monitor the usage of Shadow IT, and ensure that all applications are secure and compliant with relevant regulations. By taking these steps, organizations can reap the benefits of Shadow IT without compromising their security and compliance requirements.
- Examples of Shadow IT Usage
Examples of Shadow IT usage are becoming increasingly common across enterprise environments. In many cases, business divisions and departments are adopting applications and systems to meet their own specific needs, without consulting with the IT department. These applications are often completely disconnected from established internal IT structures and protocols.
Examples of this type of Shadow IT usage include the use of Dropbox or Private VPN networks for file storage or the use of messaging platforms such as WhatsApp instead of company-sanctioned ones. In other cases, departments may choose to host their own internal websites or applications without consulting IT personnel, resulting in data that is cut off from the main business systems.
Overall, the examples of Shadow IT usage demonstrate the increasing divergence of technology and the inability of IT departments to keep up with the pace in which technologies evolve. With faster access to data and applications, there’s a greater risk of security breaches, lack of compliance, and struggles to maintain a standardised system.
- Security Implications of Shadow IT
Security is the primary concern when it comes to Shadow IT. As business employees continue to bypass the requirements of IT departments, they open their firms up to a host of potential risks. Organizations must be aware of the potential security vulnerabilities that stemming from unmanaged Shadow IT, and understand how to mitigate them.
The primary concern with Shadow IT is the lack of visibility that IT departments have over each piece of software and hardware being used. Without knowing what an employee is using and how they are using it, there is no way of knowing if the program is adequately secured or if any data that is collected is handled safely. There is also the risk of employees introducing malware, which can further compromise business security.
Organizations using Shadow IT also run the risk of violating industry regulations and laws, as many require a certain level of compliance and traceability. By avoiding regulation, organizations exposes themselves to more risk than they may realize, including potential compliance fines and loss of customers.
Finally, as more sensitive data is stored in the cloud, organizations face a heightened security risk due to the potential of data breaches. Shadow IT users may not have the same level of security protocols as IT departments, insufficiently secure the data, or leave it exposed to malicious actors.
Organizations should establish strict policies on the usage of Shadow IT and understand the security implications. This includes regularly checking for unauthorized programs, assessing the legal compliance of any programs being used, and having a contingency plan in-place in the event of a security breach. Furthermore, IT departments should work together with business units to ensure that any new software or hardware they implement is evaluated and securely configured.
8.Conclusion
Shadow IT has become a pervasive part of many organizations around the world, allowing employees to use untested software and services to help them work faster and smarter. On one hand, shadow IT can provide businesses with a range of benefits, such as improved creativity, agility, and workforce collaboration. On the other hand, it also carries some risks and costs. Shadow IT should not be used as a replacement for traditional, secure IT options, but rather as a way to supplement them.
When deciding on the use of shadow IT, organizations should assess the potential risks and benefits and develop policies and governance accordingly. It is important to ensure that any shadow IT implementations are secure and meet any necessary regulatory requirements. By understanding the implications and potential for misuse, organizations can ensure that they are using shadow IT safely and responsibly for the benefit of their business.
