Data Security

Mitigating Risks of Shadow IT and SaaS Sprawl

February 15, 2024

Mitigating Risks of Shadow IT and SaaS Sprawl

Introduction

Shadow IT and SaaS sprawl have become major concerns for many organizations. As employees adopt cloud services without IT oversight, companies can lose control over their data and face increased security risks. However, with the right strategies, businesses can mitigate these risks and harness the power of SaaS responsibly.

Understanding Shadow IT and SaaS Sprawl

What is Shadow IT?

Shadow IT refers to any hardware, software, or services used within an organization without explicit IT approval. It encompasses things like:

Unapproved cloud services – Services like Dropbox, Slack, and Trello adopted by employees without IT vetting them first.
Self-purchased software/hardware – Employees buying devices or applications without IT involvement.
Workarounds – Employees using makeshift solutions to get work done without proper IT systems or support.

Causes of Shadow IT

There are several key causes of shadow IT:

Agility – Lengthy IT approval processes drive employees to adopt solutions faster outside of IT.
Ease of access – The availability of easy-to-use, low-cost cloud apps makes shadow IT straightforward.
Limited solutions – Employees turn to shadow IT when IT-sanctioned solutions don’t meet their needs.
Younger workforce – Millennials and Gen Z are used to quickly adopting new technologies on their own.

What is SaaS Sprawl?

SaaS sprawl occurs when an organization uses a large, unmanaged number of Software-as-a-Service applications. This sprawl happens as a result of shadow IT, with employees deploying apps freely without oversight. Key problems caused by SaaS sprawl include:

Security risks – Unsanctioned apps can introduce vulnerabilities if not properly vetted.
Compliance issues – Certain regulated data may be improperly stored in unapproved cloud services.
Cost overruns – Numerous SaaS apps can lead to overlapping capabilities and licensing waste.
Integration challenges – Getting disparate SaaS apps to work together smoothly can be difficult.
Audit challenges – Tracking all active SaaS apps across the business becomes nearly impossible.

Strategies for Mitigating Risks

Implementing Cloud Governance

The first step is to implement cloud governance – policies, processes, and tools to manage cloud usage consistently across the business. Key elements of cloud governance include:

Cloud policy – Sets guidelines for things like data security, acceptable use, and SaaS procurement.
Cloud roles and responsibilities – Defines specific roles responsible for cloud oversight like architecture review and vendor management.
Cloud processes – Standard procedures for adopting, integrating, and offboarding cloud services.
Cloud tools – Solutions for cloud security, cost management, and ongoing governance.

Improving IT Agility

Often shadow IT springs from slow, clunky IT processes. Improving agility can reduce the need for workarounds:

Automate request/change processes – Make requesting services and system changes faster and simpler.
Offer self-service capabilities – Let employees easily obtain IT-approved resources themselves.
Take an API-first approach – Leverage integration to quickly connect approved apps.
Encourage feedback – Get input from staff to improve services.

Increasing Visibility

Gain visibility into shadow IT through:

Cloud access security brokers (CASBs) – Tools that identify sanctioned vs. unsanctioned cloud usage.
Network traffic analysis – Packet inspection to detect unknown SaaS applications.
SaaS management platforms – Discover, manage, and secure SaaS apps from one dashboard.
Cloud infrastructure monitoring – View usage of IaaS/PaaS across cloud environments.

Securing Collaboration Channels

Rather than blocking everything, take a pragmatic approach:

Sanction popular apps – Evaluate and approve apps like Slack, Dropbox, and Trello for general use.
Enforce controls – Use CASBs to enforce security policies on sanctioned apps.
Restrict regulated data – Limit use of unapproved apps when sensitive data is involved.
Educate employees – Train staff on proper use of collaboration tools.

Right-sizing SaaS Licenses

Prevent licensing waste through SaaS management platforms providing:

Centralized visibility – Discover all cloud apps and associated license details.
Regular audits – Continuously audit entitlements vs. actual usage per application.
Policy-based controls – Set policies to automatically deactivate inactive users.
Workflow automation – Automate user provisioning/deprovisioning across SaaS apps.

Key Takeaways

Adopt cloud governance frameworks to standardize cloud management.
Improve IT agility to remove incentives for shadow IT workarounds.
Increase SaaS visibility through various monitoring tools.
Secure popular collaboration apps but limit unvetted app use.
Right-size SaaS licenses by regularly auditing usage and automating controls.

With the right strategies, companies can successfully embrace cloud services while minimizing risk, cost, and compliance challenges. The key is taking a thoughtful approach to establish governance, visibility, security, and management across the SaaS environment.