SHADOW IT & SAAS SPRAWL: HIDDEN RISKS IN YOUR CLOUD ENVIRONMENT
You can’t protect what you can’t see.
In today’s fast-moving digital workplace, employees regularly adopt tools like file-sharing platforms, chat apps, and design software without IT oversight. This phenomenon, shadow IT is quietly spreading like wildfire through Australian businesses.
In fact, Gartner reports that over 30% of IT budgets are now spent outside the IT department, primarily on unauthorised or unmanaged SaaS tools.
A growing trend in modern workplaces is that non-IT departments such as marketing, HR, and finance are independently purchasing and using technology tools particularly SaaS (Software as a Service) applications, without involving the central IT team.
This shift is driven by the ease of access to cloud-based tools that require little more than an email and a credit card, the desire for speed and autonomy in decision-making without waiting for IT approval, and the need for specialised solutions that may not be prioritised by IT departments.
The Risks of SaaS Sprawl
Every unapproved app increases your attack surface. Shadow IT creates several major risks:
- Data Loss & Leakage – Sensitive files may be stored or shared in non-compliant platforms with weak encryption.
- Compliance Violations – You may unknowingly breach the Privacy Act or ISO 27001 standards.
- Poor Visibility – Security teams can’t respond to incidents they’re unaware of.
What’s Fuelling the Problem?
Remote and hybrid workforces, the ease of SaaS subscriptions, and the desire for productivity tools have made shadow IT nearly impossible to contain without the right tools.
The Solution: Secure Access Service Edge (SASE)
With CommuniCloud delivering the Cato Networks SASE platform, your business gains:
- Real-Time SaaS Discovery: Identify and assess the risk of every SaaS application in use.
- Cloud DLP: Monitor data in motion to detect unauthorised file sharing or sensitive data transmission.
- Access Control: Define who can use which apps and from where.
You can’t stop users from seeking productivity, but you can manage it intelligently.
What Happens If You Don’t Report?
Actionable Tips:
- Run monthly SaaS audits to map shadow IT.
- Implement strict role-based access controls.
- Educate employees on the risks and offer secure alternatives.
- Use Cato’s App Catalogue for SaaS classification and risk scores.
Shadow IT has become the hidden layer of modern business operations, but with the right visibility and control, organisations can illuminate the risks and transform unmanaged app usage into secure, productive workflows.
Source:
- Gartner: “The Future of Shadow IT” 2024
- Cato Networks: SaaS Visibility Whitepaper
- ACSC (Australian Cyber Security Centre): Cloud Security Guidelines
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