Shadow IT – IT systems and solutions used inside companies without company approval – is here to stay, and that's a good thing. It means the business world is embracing new technologies at a rapid clip. Your job now is to figure out how to keep up and add value to the process.
Despite the fact that I cover IT trends constantly, I have a confession for you: I think Shadow IT risks are overblown. I'm starting to tune out IT pros when they whine about it, and I'm not alone.
I'm not minimizing the risks of adopting untested, poorly secured cloud services and mobile apps. I understand that there are real risks here. But, you know what? Tools are emerging to automate the process of discovering those risky apps, and the best of these tools will also help you secure them.
I was recently invited to speak at ExactTarget's Connection Conference on exactly this topic. ExactTarget is a marketing automation company, which was recently acquired by salesforce.com. The point of my talk was that the collision of marketing and IT can go in one of two directions.
The first path leads to one of those gigantic Interstate highway pileups I see so frequently on local L.A. newscasts. The second follows a path of collaboration, with two equally strong business departments helping each other reach a destination where each arrives better off than when they originally departed on the journey.
Which option would you prefer? Seems like a no-brainer, but these sorts of changes are never that simple.
After my talk, I was approached by several attendees, most of whom admitted they couldn't put these technology genies back in the bottle, yet who were equally uncertain about how to move forward in a way that won't compound the problem.
A couple others weren't so risk-averse. "I'd argue that Shadow IT is not a problem; it's progress," said Ian Murdock, VP Platform, ExactTarget. "It's kind of like software Darwinism. The services and applications that are adopted widely are the ones that IT will have to figure out how to support – whether they like it or not. On the other hand, the ones that IT legitimately cannot sign off on – because they are too insecure, too poorly designed or simply an invitation for an audit – will die off."
Granted, Murdock has a dog in this fight, being part of a marketing automation organization, yet his advice makes sense. He argues that IT departments are missing the fact that the Consumerization of IT, Shadow IT, BYOD, call it what you will, is an opportunity. IT wastes too much time on cumbersome manual processes that typically end with the same result: telling someone "no."
With so many tedious tasks becoming automated – everything from email marketing to software risk scoring to social media marketing – why wouldn’t IT want to evolve into something stronger, smarter and more perfectly adapted to an environment where a ten-year-old can adopt bleeding-edge cloud technologies from an iPad?
"Remember how Linux became practically ubiquitous?" Murdock asked. "Very few business leaders said, 'Hey, we have to adopt Linux.' Instead, they learned that they could throw Linux on an old PC and turn it into a low-cost server. Adoption solved a problem and cost next to nothing. They would have been crazy not to embrace Linux."
Remember, these "shadow" technologies are adopted so people can do their jobs, and usually do them cheaply and efficiently. Add to that the fact that IT is viewed as a cost center, rather than a profit generator, and you can see why IT moves so much more cautiously than marketing or sales when adopting new technologies. If a shadow technology leads to a major data breach, IP theft or some other catastrophe, the sales or marketing team will have the excuse of "we didn't know any better." IT will not, even if they didn't know about the adoption in the first place.
"A sales guy will never get fired for using salesforce.com, but he very well could be fired for missing his quarterly numbers," said Yorgen Edholm, CEO of Accellion, a provider of secure mobile and cloud collaboration and file-sharing services.
* 35% of IT spending will take place outside of IT by 2015, growing to 90% by the end of the decade.
* CMOs will spend more on IT than CIOs by 2017.
* 44.4% of IT professionals say they will be moving applications to the cloud within the next year.
* 44.9% of IT professionals are already running some applications in the cloud.
* Comparing departments, marketing/advertising/communications are the big adopters, with 43% admitting to using shadow IT services (this study polled European office workers)
NSA Surveillance and Shadow IT
There is one complicating factor, at least regarding U.S.-based cloud services. The NSA surveillance revelations leaked by Eric Snowden could cause regulatory problems for European companies using cloud services based in the U.S.