How To Detect Shadow IT And Optimize Your SaaS Stack?

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3
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Calender
November 21, 2024
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In most companies, employees purchase applications without waiting for approval from the IT team.

This decentralized buying creates shadow IT in the company. A 2024 Gartner study found that shadow IT accounts for 30-40% of IT spending in large enterprises, resulting in millions of dollars in unnecessary expenses.

CloudEagle.ai detects 100% of shadow IT instances, provides cost optimization opportunities, and streamlines existing operational activities within your organization.

In this guide, you will learn how to use CloudEagle.ai to address your current shadow IT challenges, achieve comprehensive SaaS visibility, and eliminate them.

TL;DR

  • Shadow IT Risks: Shadow IT accounts for 30-40% of IT spending in large enterprises, causing security risks and millions in unnecessary expenses.
  • Challenges with Shadow IT Detection: Organizations face issues like decentralized purchasing, limited visibility via Google Workspace API, and complex verification processes.
  • How CloudEagle.ai Solves It: CloudEagle.ai detects 100% of shadow IT, centralizes visibility, identifies duplicates, and automates verification processes to optimize costs and security.
  • Step-by-Step Detection Guide: From identifying free apps to automating alerts and notifications, CloudEagle.ai provides actionable steps to eliminate shadow IT effectively.
  • Benefits of Using CloudEagle.ai: Streamlined IT operations, enhanced security, precise SaaS spend control, and comprehensive visibility into your organization's app usage.

Challenges with existing shadow IT detection methods

Organizations often struggle to identify Shadow IT and eliminate it completely. But, when they opt for an advanced Shadow IT detection tool, it becomes a breeze for them. Without such tools, they face:

Difficulty in shadow IT detection: Organizations struggle to differentiate between IT-approved apps and duplicates or similar apps employees use without the IT team knowing. This lack of clarity can pose security risks and result in inefficient resource allocation.

Decentralized purchasing: Without established procurement procedures, users can independently buy software, bypassing IT supervision. It increases the use of unapproved applications in the organization, posing security and compatibility risks.

Access to corporate credit cards: Corporate credit cards with unrestricted spending help employees make software purchases without IT approval.

This accessibility encourages the adoption of shadow IT, as users may overlook organizational guidelines and opt for individual solutions. This potentially leads to budgetary issues and security concerns.

Limited visibility with Google Workspace API: The current limitations of the Google Workspace API prevent organizations from effectively monitoring unapproved apps accessed by users. As a result, organizations lack comprehensive insights into user activities, hindering their ability to identify and address shadow IT risks.

Verification process complexity: Even if organizations set up Gsuite API access to monitor logged-in apps, they face the complexity of cross-verifying them with their financial system to check if they're already paid for. This manual process is time-consuming and prone to errors.

Benefits of utilizing CloudEagle.ai for shadow IT detection

When you use CloudEagle.ai, you can easily identify unapproved apps and make decisions to eliminate those not sanctioned by the IT team. Additionally, it provides:

Simplified centralized visibility: CloudEagle.ai offers a single platform to easily identify unsanctioned apps used within your organization. This makes it quick to spot apps not officially approved or paid for, helping you assess the extent of unauthorized app usage.

Shadow IT detection: CloudEagle.ai reduces security risks by monitoring app usage across your organization. It spots instances of shadow IT where employees use unapproved apps without IT's knowledge.

Refined shadow IT alerts: CloudEagle.ai enables proactive shadow IT management. You can configure alerts to notify of unsanctioned app entries, preventing early-stage issues. Also, you can send an inquiry email to users to understand app purchases and requirements before optimization.

Duplicate app identification: CloudEagle.ai flags cases where employees use apps that duplicate internal ones. This helps optimize resource usage and avoid unnecessary expenses on software licenses.

Easy integration: CloudEagle.ai quickly integrates with platforms like Gsuite to gather comprehensive app usage data. This allows organizations to understand non-approved app usage and take action.

Auto verification: CloudEagle.ai automates verification by consolidating app usage and financial data. It simplifies identifying if apps are already paid for, making compliance and cost management easier.

A step-by-step guide to effectively detect shadow IT

To detect shadow IT in your organization, follow these step-by-step processes:

Step 1: Identifying the free and unlicensed apps

On the CloudEagle.ai dashboard, navigate downwards to locate the reports section. There, you will find the Shadow IT option. Click the icon for different reports on free and paid usage in the last 30 days.

Image of CloudEagle's report module

You can check the detailed reports by clicking on the mentioned tabs.

  • Free apps users signed up for in the last 30 days
  • Free apps with active usage in the last 30 days
  • Free applications in use (Shadow IT)
  • Purchases from Credit Card (Shadow IT)

Alternatively, there’s another way to check the free apps. From the home option, navigate to the recommendations section. Here, you'll discover various actionable suggestions.

Select the recommendation labeled "Free apps users are logging Into in last 30 Days" to continue.

Image of CloudEagle's main dashboard

Step 2: Review the application list

In this section, you'll find a list of apps detected through single sign-on (SSO), and their status will be displayed as confirmed or unconfirmed.

You'll also see the total number of logged-in users, any duplicates, and their login details. Click "Logged Users" to see who's logged into these apps.

Image of CloudEagle's Free apps login data module

Step 3: Sending an inquiry email

The chosen application shows the total number of logged-in users. To email them, click on the logged users to select the person to whom you should send an email regarding the need to use such an IT team-unsanctioned app.

Image of CloudEagle's inquiry email menu

Step 4: Draft the confirmation message and take necessary action

You can draft a message asking why the users accessed the chosen application or utilize a pre-made messaging template.

After crafting your message, you can send it to all recipients at once or distribute it individually. Click "Send" when ready to proceed.

Image of CloudEagle's inquiry email draft

Step 5: Enabling notifications/alerts/control

To adjust the alert settings for this recommendation, click the settings icon. You can change the notification period to 60 or 90 days.

Alternatively, you can manage these notifications directly from the notification settings.

Image of CloudEagle's free apps alert

Step 6: Setting advanced notifications

Select "Advanced Notification Settings" to access various notification categories.

Under "Free Apps," you can customize notification preferences for email, Slack, or in-app alerts.

Image of CloudEagle's notification settings

CloudEagle.ai's recommendations show which free apps users use, which can help you decide whether to restrict access to certain apps.

Follow these steps to find the overlapping apps. It'll help you make safer choices about app usage.

How can you take full advantage of this feature?

By leveraging CloudEagle.ai, you can create a productive environment within your organization. Let's explore the benefits further:

  • With CloudEagle.ai, you can effortlessly keep track of any alterations in your SaaS stack, ensuring you're always up to date with the latest developments.
  • The tool allows you to review corporate credit card transactions meticulously, set spending limits, and promptly remove card access when necessary. It allows you to take precise control over your SaaS spend.
  • You can identify unauthorized usage of free apps through CloudEagle.ai's detailed analysis. By promptly removing IT teams' unapproved apps, you can streamline spending and ensure that resources are allocated efficiently.
  • CloudEagle.ai empowers you to streamline IT operations, freeing valuable time and resources. By optimizing workflows and processes, you can boost efficiency across the board.
  • With CloudEagle.ai's robust vetting capabilities, you can minimize the risks associated with third-party apps. It ensures compliance and bolsters security measures, safeguarding the integrity of your SaaS stack.

CloudEagle.ai is the go-to solution for eliminating Shadow IT and fostering a more organized and productive work environment.

Want to learn how CloudEagle.ai can transform your organization's approach to shadow IT? Schedule a demo today!

Written by
Raja Adhikary
Content Writer
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