Visual representation of cloud security risks related to unauthorized applications - Global Banking & Finance Review
This image illustrates the growing concern of shadow IT within organizations, highlighting the security threats posed by unauthorized cloud applications as discussed in the article. It emphasizes the need for better oversight in cloud app implementation.
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COMPANIES LEFT IN THE DARK AS TWO-THIRDS ADMIT CLOUD APPS BEING IMPLEMENTED WITHOUT THEIR KNOWLEDGE POSE A SECURITY THREAT

Published by Gbaf News

Posted on March 19, 2015

2 min read
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Centrify Cloud Expo Europe poll shines light on shadow IT

Unauthorised Cloud Apps Create Security Risks

More than two-thirds (67 per cent) of organisations admit that unauthorised cloud applications are being implemented without IT’s knowledge or involvement, and correspondingly pose a security risk to the business.  This is according to a snapshot poll by Centrify, the leader in unified identity management across cloud, mobile and data centre, at Cloud Expo Europe last week in London.

Shadow IT on the Rise in Organisations

As Shadow IT becomes a bigger challenge for businesses – with employees downloading applications without going through a formal IT procurement process – around 40 per cent of respondents said that between 10-20 per cent of cloud services are now being purchased outside of IT.  A fifth admitted that between 10-20 per cent of cloud applications are being implemented without any knowledge or involvement from IT, while half of respondents believed it was less than 10 per cent.

“It probably seems like an easy solution for people looking to cut corners and avoid having to go through the formal process of getting IT approval,” says Barry Scott, CTO EMEA at Centrify.  “The problem is that so much cloud-based software is easily available and requires no IT skills whatsoever to manage, so staff are just downloading the tools they like or that will help in their work, without considering the risks.

Extent of Shadow IT Often Underestimated

“While half of our poll respondents were confident that less than 10 per cent of applications were being implemented without their knowledge, they are likely to be underestimating the extent of shadow IT in their organisation.  Without the necessary controls and security policies in place, including passwords and authentication, unauthorised cloud apps are opening up corporate data to the risk of compromise,” adds Scott.

IT Teams Spend Hours Managing Risks

Visitors to the Centrify stand at Cloud Expo were also asked to estimate how much time they spend managing unauthorised cloud applications – 42 per cent said between 1-2 hours per week, while 21 per cent said between 2-5 hours per week.

Key Takeaways

  • 67% of organisations report unauthorised cloud apps are implemented without IT’s knowledge, posing security threats
  • Approximately 40% say 10–20% of cloud services are purchased outside IT processes
  • Managing unauthorised cloud apps consumes time—42% spend 1–2 hours/week, 21% spend 2–5 hours/week
  • IT likely underestimates shadow IT prevalence, increasing risk without proper controls

References

Frequently Asked Questions

What percentage of organisations admit unauthorised cloud apps are implemented without IT knowledge?
67% of organisations acknowledge that unauthorised cloud applications are implemented without IT’s knowledge, posing a security risk.
How much cloud service usage occurs outside IT procurement?
About 40% said 10–20% of cloud services are now being purchased outside of IT’s formal procurement process.
How much time do organisations spend managing unauthorised cloud apps?
42% spend between 1–2 hours per week, and 21% spend between 2–5 hours managing these unauthorised cloud applications.

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