Out of sight, out of control: The silent spread of shadow IT

Imagine your IT department as the set of an old Western film. If IT management is the town sheriff, shadow IT becomes the villain: untrustworthy, unpredictable, and capable of undermining every security endeavor. This threat is worse because it comes from your team–or maybe even from your actions.

Shadow IT is any employee behavior or practice that relies on non-sanctioned technology or resources for job performance. Examples include using unapproved personal devices instead of company ones, working with software from outside an organization, or sharing login credentials. While these behaviors may seem innocent enough, they run the risk of exposing your organization to serious security breaches and other threats. 

To help you understand the risks of shadow IT and how to prevent it, here’s an in-depth rundown of shadow IT: What it is, why it exists, its consequences, and how the right IT management software solution can act as the hero you need to keep bad guys out of town.

What is shadow IT?

Shadow IT is any practice or behavior that lies outside the parameters of an IT department’s knowledge and resources. Because that defines a wide range of possibilities, here are some examples of shadow IT:

• Unapproved hardware, software, or cloud services purchases: If a company chooses to invest in a product without vetting it with the IT department, the product is considered shadow IT until it’s introduced to the IT department and subjected to onboarding protocol. 
• Unapproved software, hardware, or cloud services used by employees: If someone in an organization downloads a program, uses their personal device, or shares a file with a coworker using an outside cloud service, they’re engaging with shadow IT behavior. 
• Sharing login credentials or other sensitive information: If an employee shares their login credentials–even if with another employee–it’s considered shadow IT. 

As these examples illustrate, shadow IT can arise from many different places in many different forms. While some of these behaviors are more obvious no-nos—such as downloading unapproved software—others seem more innocuous (like sharing login credentials with a trusted coworker). In either case, it’s impossible to know when shadow IT will cross the line from being a potential risk to creating an actual security breach or other negative outcome. 

Consequences of shadow IT

Shadow IT can result in some serious consequences. A 2020 Gartner report discovered that one-third of successful cyber attacks will occur on data stored in shadow IT infrastructure. The potential fallout of shadow IT usage include:

• Data breaches: Unauthorized software can compromise a security system, especially if the user doesn’t regularly update it. A data breach may also result when shadow IT software or cloud service exposes sensitive data, resulting in a leak.
• Compliance risks: If an IT department stays in the dark about shadow IT behaviors, it can expose an organization to compliance violations that result in data loss, fines, and more.
• Erratic security protocol: When IT departments are unaware of the tools used by an organization’s employees, they remain unable to enforce best practices and security measures. 
• Increased costs: Shadow IT can cost an organization. They may find themselves paying for unsanctioned tech and its approved equivalent, unnecessarily doubling expenditures. Another example is the hidden costs of licensing fees, storage fees, and maintenance that shadow IT tech incurs. In the case of a security breach, a team will have to pay for the downtime and labor it takes to restore order–not to mention the damage to their reputation.

Given these downsides, it’s no wonder that 77% of IT professionals say shadow IT will become a major concern if management doesn’t take action. 

Why shadow IT is so prevalent

If shadow IT poses so many risks, then why do people engage in it? A Statista report found that 42% of respondents use their unapproved personal email for work, and that 58% of IT managers use unapproved tools to connect with their team. It’s also likely that remote work has increased the proliferation of shadow IT: Another report discovered that 65% of employees who worked remotely before the pandemic now use shadow IT. All these examples point to a clear trend of shadow IT usage despite its inherent drawbacks.

The reasons for shadow IT’s temptation number several, but a primary driver is that employees want to be better at their job. As a result, they take shortcuts—using personal devices or emails to share files, and installing apps or software that increase productivity. Another motivator is that employees are unsatisfied with the available technology. The prevalence of remote work has added another wrinkle to this paradigm, as employees need to find new ways to communicate with each other. 

How Atera helps IT managers overcome shadow IT

Atera provides a comprehensive solution to combat shadow IT, empowering IT departments to regain control and visibility across the organization:

• Asset discovery and management: Atera’s powerful asset discovery tools automatically scan and inventory all devices and software on your network. This gives IT teams a complete view of what’s being used, helping identify unauthorized tools and applications.
• Remote Monitoring and Management (RMM): With Atera’s RMM capabilities, IT teams can proactively monitor and manage all devices, ensuring they comply with company policies and security standards.
• Centralized software deployment: Atera streamlines software distribution, making it easy for IT to provide employees with approved tools quickly. This reduces the temptation to seek outside solutions.
• Policy enforcement: Implement and enforce IT policies across all devices with Atera’s policy management features. This helps prevent the use of unauthorized applications and services.
• Automated patch management: Keep all systems and software up-to-date automatically, reducing the security risks associated with outdated or unsupported applications.
• Reporting and analytics: Atera’s comprehensive reporting tools provide visibility into software usage, helping IT teams identify redundant or unnecessary applications and optimize licensing.
• Integration capabilities: Atera integrates with various third-party tools, allowing IT to create a more cohesive ecosystem that meets user needs without resorting to shadow IT.

By implementing Atera, organizations can shine a light on shadow IT, bringing it out of the darkness and into a managed, secure environment. This not only improves security and compliance but also enhances productivity by ensuring employees have access to the tools they need through proper channels.

Atera empowers companies to be better versions of themselves, which is why we offer a free 30 day trial!

Get started with Atera today and experience the power of better IT outcomes.