What is “shadow IT”? Have you experienced it in your own company? Ellen Messmer reports for Network World about the growth in shadow IT.
Shadow IT is when business divisions bypass IT and purchase cloud-based application services. These services are sometimes unknown to IT and the CIO. Many times these cloud computing services are for the sales and customer relationship management functions within the organization.
One analyst estimates based on a recent survey that 15-30% of IT spending is now done outside of the standard consolidated budget. Common reasons for why a business unit might bypass IT are typically around the feeling of urgency. The business unit, whether true or untrue, may feel that enterprise IT will be too slow to react to market changes. Analysts point out that many times the business unit does not realize or know about hidden costs that may come from managing the data or the costs associated with data integration into the enterprise.
Many experts feel that shadow IT is here to stay and IT will need to come to grips. One way that shadow IT is being addressed is on the security and compliance side. The chief security officer is able take the overall view and analyzes the implications and risks of shadow IT for high level evaluation and identification.