The 3 Silent Risks of Shadow IT

Do you know which apps your employees downloaded to their work devices this morning? While it’s nice to imagine your team is sticking closely to your official tech stack, in reality, your IT infrastructure likely looks a bit more chaotic. In the world of managed IT, we call this chaos Shadow IT—the use of software, hardware, or cloud services without the approval or oversight of your IT department—and while it’s usually done with good intentions, it’s a serious problem you need to nip in the bud now.

Here are the three biggest complications that can come from rampant Shadow IT in your business.

You’re Opening a Back Door for Data Breaches and Ransomware

The biggest threats to your business aren’t the movie-style hackers in their black hoodies; it’s the employee who uses a free PDF converter they found through Google because there isn’t another (better) tool available.

If an employee uses an unapproved application, that means the software hasn’t been reviewed and vetted by your IT department. These tools often lack the kind of enterprise-grade encryption, multi-factor authentication, and regular security patches you expect of your business tools. If your free tools ever become compromised, they become a bridge for security threats to infiltrate your network.

Remember that your network’s security is balanced on a razor’s edge. All it takes is one unpatched, unmonitored, and unmanaged tool on your infrastructure to send it spiraling.

Your Data Becomes Fragmented, Dirty, and Impossible to Back Up

One of the worst things about Shadow IT is that it creates data silos, where parts of your business’ data live outside the company’s primary ecosystem, thus making it difficult to see all of it at a glance.

When it comes time to run annual or quarterly reports, all the necessary data is scattered in different locations. None of these systems talk to each other, so you end up with a huge waste of time on your hands, as well as a lack of data integrity.

Standardizing your processes and eliminating Shadow IT is vital if you want to avoid duplicating work, compliance consequences, and data backup disasters.

You’re Wasting Money on “Zombie” Subscriptions and Overlapping Tools

Shadow IT isn’t just a security risk; it’s a direct threat to your bottom line.

How many tools are you paying for that don’t see any actual legitimate use? It’s often the case that different departments for SMBs pay for different tools that perform the same function. Think paying for a premium Slack account when Microsoft Teams (and the entire Microsoft 365 suite) is right in front of you. It’s wasteful, and the only way to uncover this is to conduct a tech stack audit.

When you’re performing this audit, look for redundant functionality, missing volume discounts, and abandoned subscriptions for completely unused tools. They exist; you just have to look for them.

Ultimately, Shadow IT is a process problem, not a people problem. Employees only turn to unapproved tools if they feel the “official” tool is too slow or too difficult to use. You have more power over this than you think, so take time to listen to your team and understand the frustrations they experience. It might save you from a Shadow IT incident.

Learn more about how to avoid Shadow IT and equip your employees with tools they actually use by working with Direct Technology Group. Get in touch with us at (954) 739-4700.