Discover Shadow IT: What It Is and How to Define It
Shadow IT, a somewhat controversial issue within the information technology (IT) sphere, is a term used to describe IT systems, projects, and solutions that are set up and used by departments or individuals within an organization without explicit, organizational approval. In this article, we will discuss the definition of Shadow IT, how it differs from traditional IT, and the risks and rewards associated with it. Additionally, we will explore strategies for managing Shadow IT that organizations can use to both identify and limit its use.
Table of Contents
- Introduction to Shadow IT
- Definition of Shadow IT
- Examples of Shadow IT
- Benefits of Shadow IT
- Risks of Shadow IT
- Strategies to Manage Shadow IT
- Difference of Traditional IT and Shadow IT
- Concluding Remarks
Order 1: Introduction to Shadow IT
Shadow IT, or the ‘unknown IT’, is a concept that has been around for a long time but has been gaining traction in recent years as organizations face changing technology demands. Named after its tendency to exist ‘in the shadows’, Shadow IT can refer to any unauthorized use or infrastructure of technology within a company. This could include applications being used on employee devices, personal accounts to access company systems, or even cloud-based solutions not authorized by the enterprise.
Despite many organizations having clear detection methods in place to identify any form of Shadow IT, employees and other stakeholders continue to use technology solutions that are not entirely in line with enterprise policy. What this means is that Shadow IT can be seen as an IT version of customer ‘product evangelism’ – an unplanned diffusion of technology from individual users to departments or even entire organizations. This in turn has helped spread the idea of Shadow IT among other users, often with positive results.
- Definition of Shadow IT
Definition of Shadow IT
Shadow IT, also sometimes referred to as “stealth IT”, is the practice of using technology without the consent or knowledge of the organization’s IT department. Shadow IT can include using software, services, or devices not sanctioned by the IT team, or compromising IT policies or security standards in order to utilize unauthorized solutions or platforms. Often, the approach is used to allow employees to get their work done quickly, but sometimes it is done in order to store or access information in a way that circumvents an organization’s security procedures.
In most cases, shadow IT does not follow any of the principles of cybersecurity. IT teams are unable to protect corporate data or devices if they do not know about them, which makes it difficult to ensure proper controls are in place. Shadow IT is risky because it can easily introduce vulnerabilities to an organization’s network and data, as well as open the door for cyber criminals to access sensitive information. Beyond this, shadow IT often does not comply with regulatory compliance requirements, making it easier for a company to be out of compliance with various laws and regulations.
- Examples of Shadow IT
Shadow IT, also known as enterprise “gray IT” or “stealth IT,” can be defined as the use of information technology systems and tools without organizational approval. Examples of shadow IT include use of software-as-a-service (SaaS) application, mobile application, cloud storage, personal devices, and other IT tools for departmental or individual projects. One of the most common examples is using software or devices without informing the IT department, such as downloading unapproved applications, using personal devices or web-based applications, or storing data in a cloud without authorization.
In addition, IT personnel sometimes use “utility computing” services or applications that are not officially approved or configured by the IT department. These “freeware” applications include file sharing and collaboration tools, social media, IM, gaming, remote access, and online marketing. They enable users to access services or software without obtaining permission from the IT department.
Other examples of Shadow IT can also include tools that are purchased and used to build department-level applications. The examples of these tools can include but not limited to programming languages, frameworks, development libraries, web services, and other components. In addition, organizations also need to consider infrastructure-level implementation such as using personal laptops, home computers, and internet connection on corporate devices that are not controlled by the IT department. All these can be categorized as Shadow IT since they are conducted without proper IT governance and management.
- Benefits of Shadow IT
Shadow IT has a number of potential benefits that can help organizations increase their efficiency, reduce costs, and provide better products and services. At the same time, it can also provide new perspectives on how to approach problems and ways of doing business.
The primary benefit of shadow IT is that it permits departments to adopt new technological solutions quickly, without having to go through the potentially lengthy process of obtaining the necessary approval from the IT department. This can allow departments to more quickly take advantage of new software and services that may have been unfamiliar or unavailable to them in the past.
Shadow IT can also be useful for allowing departments to move at a faster pace, as they can experiment with solutions that may not have been tested or approved before. This is especially useful for departments with innovative ideas or highly specialized needs, as they can identify and use solutions that are tailored to their specific goals and problems.
Shadow IT can also be useful for helping departments save money. By providing ready-made solutions off the shelf, departments can avoid the expensive development costs that often come with custom solutions. Additionally, this can lead to cost savings and efficiency improvements by allowing departments to quickly adopt new solutions that may have previously taken months or years to develop.
Finally, shadow IT can provide potential insights into novel solutions and problems that may not have been considered before. This can provide an avenue for departments to try different approaches or angles to problems, allowing them to benefit from new perspectives or ideas that they may not have been exposed to in traditional IT departments.
- Risks of Shadow IT
Shadow IT has the potential to create a number of risks for any organization. Not only do unapproved programs potentially leak sensitive data, but they can also be used to commit crimes. Whether it is accessing confidential information or committing fraud, Shadow IT can be highly dangerous if not monitored properly.
One of the main risks of Shadow IT is the security risk. Without oversight and control, unauthorized software can pose serious threats to the company’s security. Since shadow IT applications are not checked using the company’s internal policies, there is no way to know if they are secure or malicious. It is possible for unauthorized software to contain severe vulnerabilities, such as data breaches, identity theft, malicious code, network intrusions, and more.
Another risk of Shadow IT is the potential for compliance violations. If software used in the company is not approved, it could put the business in a difficult situation if an audit is conducted. Not only that, but the lack of oversight leads to a lack of accountability. As a result, rogue applications pose a greater risk of non-compliance and violation of corporate governance policies.
Lastly, unauthorized software can lead to compatibility issues. When incompatible programs are used, it can create conflicts and performance issues, ultimately leading to lost data and poor user experiences. This in turn, can cause frustration among employees and can lead to decreased productivity.
All in all, Shadow IT has the potential to cause a great deal of damage to any organization. It is important to be aware of the risks and to put a proper management plan in place in order to ensure the safety of the company.
- Strategies to Manage Shadow IT
Shadow IT is a term used to describe the use of hardware, software, and services by employees and IT teams for business purposes without the knowledge or approval of the IT department. This can cause a variety of security risks and cost organizations large amounts of money. It is important for organizations to have strategies in place to manage Shadow IT, in order to ensure IT security and proper use of resources.
There are a few key strategies organizations can use to manage Shadow IT and ensure the security of organizational data. First, organizations should have a clear set of guidelines on the approved tools and services employees can use for work-related activities. This will allow employees and IT teams to understand what is acceptable and what is not.
Second, organizations should keep a record of all Shadow IT applications, services, and users within the organization. This will help the organization be aware of all potential risks and take steps to mitigate them. Third, organizations should be proactive in communicating with employees on which applications or services are allowed in the workplace. This will ensure that employees understand the risks that Shadow IT presents and will be less likely to use unauthorized applications.
Finally, organizations should conduct regular audits of Shadow IT usage and enforce policies and penalties for misuse. This will help IT teams identify unauthorized applications and users, and take steps to mitigate the risks associated with them.
By taking the proper strategies to manage Shadow IT, organizations can ensure the proper use of their resources and prevent the associated security risks. It is important for organizations to have clear guidelines in place and enforce them in order to keep their data safe and secure.
- Difference of Traditional IT and Shadow IT
When discussing the differences between traditional IT and Shadow IT, it is important to understand the differences between the two. Traditional IT refers to the use of authorized IT processes, procedures, and technologies within an organization. This includes IT systems and applications that are approved and officially sanctioned by the organization for use in its business operations.
Shadow IT, on the other hand, refers to unauthorized or unsanctioned processes, technologies, or systems used within an organization. This can include applications, software, hardware, or cloud services used by individuals within an organization without approval from the official IT team.
The primary difference between traditional IT and Shadow IT is the level of control and security. Shadow IT typically lacks the ability to meet security requirements such as encryption and authentication, as well as the processes to regularly backup and update the software to ensure its continued functionality and personal data safety. Traditional IT is subject to rigorous security protocols and regular maintenance and updates, thus providing a greater level of security.
Additionally, Shadow IT can be difficult to monitor and track, creating potential problems in terms of security and data protection. If an employee is using an unauthorized application, it can be difficult to understand what is happening with the data and if it is being used in a secure manner. This risk is not present with traditional IT as it is easier to track use and access levels.
In summary, the key difference between traditional IT and Shadow IT lies in the level of control and security around the process and technology, and diligence required from the official IT team. Traditional IT requires strict protocols and regular maintenance and updates, while Shadow IT often lacks the stability or control of traditional IT.
- Concluding Remarks
As we have seen, Shadow IT can provide many benefits to organizations, such as increased efficiency, improved customer service, and more cost-effective solutions. However, Shadow IT also carries the potential risks of noncompliance with legal and regulatory requirements, data security issues, and unauthorized access to networks. To mitigate such risks, organizations must develop a strategy for managing Shadow IT. This strategy should include measures such as formal policies, user education, and collaboration between IT and business teams.
Organizations should also consider the differences between Shadow IT and traditional IT in order to properly identify and track such activities. While many of the same processes should be employed for Shadow IT, different solutions or strategies may be necessary to implement and ensure the security of such projects.
In conclusion, Shadow IT can be a valuable tool for businesses, as long as the organization has the appropriate processes in place to ensure its security and compliance with relevant regulations. By properly managing Shadow IT, organizations can enjoy the many benefits this type of technology provides without experiencing significant risks.
