What is Shadow IT?

Shadow IT is when employees use unapproved software and services at work. It starts because IT moves too slowly, but it opens doors to phishing, data breaches, and compliance problems. An internal audit can help you find what's actually running in your company.
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It's time we talk about the mysterious mistress of enterprise cloud computing, and that's Shadow It. If you're watching this video, you've probably heard whispers of this name and are possibly even looking for a solution around it. If so, you're in the right place, because in today's video, I'm going to explain what Shadow it is, how it happens, the pros and cons of it, and how it can make your data and business vulnerable. And don't forget to stick around to the end of the video because I've got a solution for you to see if Shadow it is happening in your organization. So without further ado, get your night vision goggles on because we're going deep into the depths of the Shadow it cave. So what is Shadow it? Let's look at the definition. Shadow it is defined as the use of any software, hardware, or now more than ever, cloud services in your organization that IT or the relevant security department has not approved. Also, just to clarify, it's not always the IT department that accumulates Shadow It. For the most part, it happens in far off departments like marketing and sales, where where they're looking for productivity hacks and innovating new ways to get work done faster. But now that we know the definition, let's look at how it all started. Shadow it is something that began out of pure need. As constant technological innovation in the workplace had become essential to keeping up with the bottom line, those tech savvy employees began hunting for their own solutions to solve those specific business problems faster, easier and smarter than they ever have before. Also, they could keep up with the changing environment in the modern day office. The push for innovative technological solutions became immense, which birthed a myriad of SaaS, software and even hardware solutions from shrewd entrepreneurs looking to make a quick buck by helping employees streamline their workflow. But not only was helping people profitable, they soon realized that selling their data was even more profitable. And the explosion escalates. Now, if you want a scheduling app, you can choose from 20 different ones in 20 countries. But be careful on which one you choose. Here's some examples of Shadow It. Let's say a project manager wants to download a scheduling software that works with their Gmail account or Office account to help them organize their operations a little bit better. Maybe you and your colleagues want to communicate a little better around the project you're working on, so you decide to launch an instant messaging application to talk about it. Now, it could even also be a developer spinning up a sandbox environment that has not been approved by it, or it can also be my personal favorite downloading TikTok on a work device as you can clearly see, Shadow it comes from a wholesome place, and it also comes in many forms too. However, it preys on a person's quest for a quickly implemented solution. Malicious parties know this and have been targeting those SaaS apps as they can produce a lucrative amount of data and value if successfully penetrated. Now, I'm sure by now you've heard enough of those classic security buzzwords, but this doesn't really make sense unless we've put it in a typical security vulnerability scenario. Here's one that I bet my silver dollar you've experienced before. Let's say you found an app that'll help you schedule things, so you go for it. However, when installing it, something like this pops up. Now, we see this a lot these days, so you may not think twice about it and agree to the terms. You sign in with your work credentials and start implementing this fresh software. Right now you're thinking of the praise you'll get from all those sweet productivity gains. But wait, did you see that during that open authorization form, a duplicated page popped up that replicated the Outlook or Google sign in and you were a little sleepy from working all night the night before, so you didn't think twice to check it out extra closely. Now your credentials have just been phished. If you're privy to official documents, the hacker has just hit the jackpot. Next thing you know, things like company credit cards, client lists, employee credentials have been lifted and are now being sold on the darknet to some guy in Latvia. But let's say you enter your credentials in a solid form and everything checks out. You agree to the permissions they asked, like allow this app to access your calendar in order to use this application. Now, whatever access you've granted them is in their hands to keep safe. But can you say for sure they're really going to keep it safe? Are their databases protected as they say they are, or are they Are they sending any of that to third parties, which may sell it to your competitors? Maybe, but the answer is we don't know for sure. And that's why Open Authorization enabled it. Applications can cause a security risk that many often overlook. Hundreds of these applications are typically seen in an enterprise. Most of them are harmless. You'll typically see file sharing, storage or collaboration applications. However, depending what you're sharing on those applications, this could present another risk in your environment with the consumerization of it. Downloading an app to help you do your work is faster than IT and security can implement their solutions. This can create the old Tortoise and Hare scenario which can expose the gap in your company's IT infrastructure. The security risk from Shadow IT can be a thorn in IT teams side around the world. However, there is some light at the end of the tunnel. Let's weigh these risks with some pros and cons. Let's talk about the pros first. The pros can create innovative new workflows in your organization can increase productivity. Shadow IT can also identify weaknesses in the current IT environment. It can be used to streamline IT software implementation process, cutting down on the lengthy approval process and creating new ways to deploy these apps agilely. Now let's take a look at some of the cons. Shadow IT can put you in risk of a security breach and or a data leak if you're not careful can create a rift in department relationships if companies crack down too hard. Shadow IT can also put you out of compliance with some software renders which could come back and bite you if you're not up to date with what is going on in your environment. If you're looking to gain insight on the applications that are floating around in your organization, you need to perform what's known as an internal audit. Luckily, we have a tool for you to do just that. It's called SAM Compass and just like the compass itself, it can help you navigate and provide insight into your IT inventory. So if you want to stick your tentacles out there and see what's really going on, don't hesitate to get in contact with us. You can do so by clicking the link in the description below. Alternatively, you can give us a good old call at the number on screen here. After you click the link in the description, you'll have to fill out a form after that. Our experts will be in contact with you very soon. Thanks for watching this video on Shadow it. Hopefully it refreshed you well. Don't forget to smash that like button click subscribe and ring the bell. Subscribe so you can stay up to date and be notified when we post more software asset management content videos like this one on the channel. Thanks for watching and I'll see you next time.
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