Shadow IT management is an increasingly important aspect of business operations, with experts estimating that a significant 40% of IT spending occurs outside of the IT department. This phenomenon can be attributed to the growing popularity of cloud applications, such as file sharing and collaboration tools, which have become essential for maintaining competitiveness in today’s market.
Interestingly, the rise in IT spending outside the IT department has been positively impacting employee productivity. By providing employees with the necessary tools and resources, businesses have witnessed a boost in productivity. The constant growth of Software-as-a-Service (SaaS) applications has facilitated streamlined workflows, enabling employees to operate faster and more efficiently in their daily roles.
Considering these statistics, it becomes clear that understanding and managing shadow IT is crucial for businesses. Embracing and controlling this trend can yield significant benefits in terms of productivity and operational efficiency. However, it is also important to acknowledge the potential risks that come with shadow IT, such as security breaches and compliance issues. Therefore, implementing effective shadow IT management solutions and tools is essential to mitigate these risks.
By preventing unauthorized software usage and unsanctioned tool adoption, businesses can ensure proper security and compliance protocols are followed. This proactive approach reduces the likelihood of potential security issues and hefty fines that may result from non-compliance. Additionally, employing a robust discovery process and implementing a cloud access security broker (CASB) can provide insights into unauthorized applications and help manage the growing use of cloud-based services.
In conclusion, staying informed about shadow IT management statistics is vital for specialists in the field. Embracing the benefits that shadow IT can offer, such as increased productivity and employee satisfaction, while mitigating potential risks, will contribute to overall business success. By understanding the impact of shadow IT, businesses can adopt effective management strategies that align with their objectives and ensure secure and efficient technology systems.
Shadow IT usage statistics
The rise of shadow IT in the workplace is truly astounding, with a significant number of individuals utilizing unauthorized software. As the availability of cloud-based applications continues to expand, these statistics are expected to soar in the coming years.
An astonishing 80% of workers confess to using software-as-a-service (SaaS) applications without obtaining the proper approval from the IT department. The scale of shadow IT cloud usage is estimated to be ten times larger than the known cloud usage, indicating the magnitude of this trend. On average, companies are unaware of a staggering 975 cloud services being used within their organizations, while also having knowledge of over 108 sanctioned cloud services.
Furthermore, it is concerning to note that 35% of employees feel the need to circumvent their company’s security policies in order to fulfill their job responsibilities effectively. Shockingly, approximately 21% of organizations lack a policy addressing the use of new technologies, thus amplifying the risks associated with shadow IT.
Collaboration tools are also a key area affected by shadow IT. Two-thirds of teams introduce their own collaboration tools into their organizations, with 82% pushing back against IT or management in determining which specific tools should be utilized.
Despite these potential risks, 77% of surveyed professionals believe that their organizations could gain a competitive advantage by embracing shadow IT solutions. However, it is important to address the financial implications of such practices, as an estimated $34 billion in licensing waste is generated annually between the United States and the United Kingdom. Additionally, a concerning 8% of software licenses are only utilized once a month, further exacerbating the issue of unnecessary spending.
To effectively manage the shadow IT phenomenon, it is imperative for organizations to gain better visibility and control over their technology ecosystem. By implementing comprehensive policies, establishing clear ownership and approval processes, and leveraging proper management tools, businesses can efficiently mitigate the potential risks associated with shadow IT.
Shadow IT security risk statistics
Shadow IT poses significant security risks to organizations. One of the main dangers is the potential for data leaks, which can result in severe financial damages. In fact, these breaches can cost millions of dollars to companies, along with additional expenses incurred in data recovery efforts.
To mitigate these risks, it is essential for employees to always consult with their IT department before using any new software. Surprisingly, a staggering 79% of employees acknowledge that introducing unauthorized technology exposes their company’s security, making it a top concern.
To combat these issues, 28% of IT leaders are now turning to SaaS management tools to gain visibility into shadow IT. This visibility is vital for protecting sensitive data and securing critical systems.
The migration to the cloud also presents its own set of security concerns. In fact, 33% of people express security as their primary apprehension when migrating to cloud-based services. Additionally, a striking 83% of IT professionals report that employees store company data on unsanctioned cloud platforms, further compounding the security risks.
Looking to the future, these concerns are only expected to escalate. By 2025, three out of four individuals believe that shadow IT will become an even greater security issue within their organizations.
It is imperative for companies to address these risks head-on and implement robust security measures to protect sensitive data and ensure compliance. By doing so, they can safeguard their valuable assets and maintain the trust of their customers and stakeholders.
Shadow IT cost statistics
In the realm of large organizations, it is customary for budgets to be allocated to procure software to meet the specific needs of each department. However, an alarming trend has surfaced where organizations fail to designate budgets for shadow IT usage, resulting in the misuse of funds.
A staggering 59% of individuals surveyed have identified that IT spend and cost overruns rank as the second most concerning issue surrounding shadow IT. This indicates a significant misalignment between projected budgets and their actual disbursement.
Interestingly, it has been observed that between 20% to 40% of enterprise technology funding is now being spent outside the purview of IT. This suggests that departments are increasingly taking matters into their own hands, circumventing the established IT channels for their software needs.
To compound matters further, a recent study conducted by EMC reveals an astonishing cost of $1.7 trillion annually due to data loss and downtime resulting from shadow IT security breaches. This substantial figure underscores the urgency for organizations to address the risks associated with unsanctioned technology usage.
Sources: Zdnet, The Next Web, Security Boulevard, Information Week, Forcepoint, Forbes, Augmentt, Quality Deployment.
Shadow IT popularity is growing everyday
As the popularity of shadow IT continues to grow, organizations are faced with the challenge of monitoring and managing the usage of unsanctioned software within their company. Companies are increasingly realizing the need to take control of their technology stack to ensure efficiency and security.
One of the key concerns surrounding shadow IT is its impact on IT spend and cost overruns. Surprisingly, a staggering 59% of individuals surveyed have expressed concern over the misalignment between projected budgets and the actual disbursement of funds. This indicates a significant reliance on unsanctioned software and a disconnect from established IT channels.
Furthermore, between 20% to 40% of enterprise technology funding is now being spent outside the purview of IT. This shows a growing trend of departments taking matters into their own hands and seeking software solutions independently. This not only creates a challenge for IT departments in terms of maintaining control but also results in potential security risks and compliance issues.
In fact, the cost of data loss and downtime resulting from shadow IT security breaches is staggering. According to a study conducted by EMC, organizations are incurring an estimated annual cost of $1.7 trillion. This figure highlights the urgent need for organizations to address and mitigate the risks associated with the usage of unsanctioned technology.
To effectively tackle the issues posed by shadow IT and regain control over the technology stack, organizations are turning to solutions like Key Subscriptions. By leveraging tools that monitor software spend and ensure stack security, companies can proactively manage shadow IT and prevent potential risks and compliance violations.
As the shadow IT landscape continues to evolve, it is becoming increasingly vital for organizations to recognize the significance of monitoring and managing unsanctioned software usage. By doing so, companies can not only regain control of their technology stack but also ensure efficiency, security, and compliance throughout their operations.
