5 Ways Shadow IT Services Hurts Enterprises

Pallavi Varanasi Cloud Security Expert - CloudCodes Software
  • July 10th, 2020

There happens to be a massive impact of the dark shadow that Shadow IT casts on businesses around the globe. An EMC study is suggesting that data loss, as well as downtime, collectively cost around $1.7 trillion every year. Out of 1000+ cloud services, the bulk of it can be categorized under the umbrella of Shadow IT services. 

The users can download and use cloud apps (unsanctioned apps) to increase their production or efficiency, but fail to take approval from their administrators to download. Indeed, this adventurous nature may lead to unnecessary exposure of the organizations’ confidential data sitting on the Cloud, which they are working through, and poses a threat to the organization for data breach security and even unlawful thefts compromising Enterprise Security.


Top 5 Ways In Which Shadow IT Services Hurt An Enterprise

Below listed are the top 5 ways in which Shadow IT services might hurt an enterprise:

  • When Cloud Security is not for an enterprise: The first and foremost thing that strikes the mind is how adequately the measures taken for Cloud security, and if they can safeguard against ALL threats to data residing over the cloud? The legend says that only about 7% of all cloud services go well with enterprise security requirements and meet the top standard criteria for security, governance, and compliance. It is important to investigate before downloading any cloud service if adequate protection gears accompany the cloud app itself. The layering of data storage over the cloud, access permissions to are essential parameters to gauge the applications’ sensitiveness concerning cloud security. If these parameters are not adequate, then the enterprise must need to revisit and strengthen their cloud security protocols by defining policies stringent enough to block any potential threat.


  • When confidential data on a Cloud network: The data on the Cloud network is accessed by too many stakeholders, challenging to keep a track on, amplifies the threat of data leakage to a great extent. To w keep the data safe, an enterprise must ensure to keep track and manage the flow of data over the cloud and must have the ability to define precisely the location of confidential data to be maintained. It is precisely where the visibility of data over cloud appears shadowy and vulnerable to threats. So, a CASB solution is needed, which should be sharp enough to make every single data element visible over the vast cloud network.


  • When Cloud applications are not optimized: Certain cloud apps are meant for a single user and work on their feedback through their interaction with the application. Such cloud apps are not optimized to be used on a cloud network, and the user accidentally starts using it to access enterprise data, which magnifies the threat to Cloud security. Such cloud apps are themselves not reliable enough to be a part of a bigger cloud network and be able to sustain, and also don’t address the nitty-gritty involved in enterprise security overcloud. Besides the use of sanctioned apps, enterprise data, through the use of several third-party unsanctioned apps, gets compromised. So, any such cloud application needs to be screened for security features, reliability for storing confidential data, and if data recovery is possible.


  • The cost of individual licenses is higher: Individual users using specific cloud apps are not aware of the volume pricing for enterprises, which is, in most cases, different. For any cloud app, it may cost several times higher individually as a single-license than a bulk enterprise license, which is on the order of 100 to 1000 or maybe more. So, a right CASB solution for cloud security, under Shadow IT solutions, must capture, report, and act against unsanctioned Cloud apps. It must eliminate activities from any particular user using such an unsanctioned app.


  • The accountability of cloud security: If a user uses an unsanctioned app, the responsibility lies with the IT admin. A Cloud Access Security Brokers solution must empower the IT admin with its Shadow IT services to control any unknown activity that is not in line with the organizations’ enterprise security policy by capturing, reporting, and restricting mechanisms.


CloudCodes way of Shadow IT:

CloudCodes CASB Shadow IT solutions can address the Shadow IT by merely finding or understanding or securing the cloud services in organizations. CloudCodes CASB is one of the widely used and a great solution that helps the organization to have better data security control inside the organizations.

CloudCodes CASB Shadow IT solution helps in maintaining a balance between the user needs and the needs of an enterprise for security purposes by ultimately managing all types of potential threats. For example, data leakage, using sanctioned apps in the cloud environment, blocking download or upload of unsanctioned apps, blacklisting URLs, and also by mapping & identifying cloud environment and cloud apps which organization uses. All these ensure complete enterprise security.