Managing the Risks of SaaS Sprawl and Shadow IT

In today's digital world, companies of all sizes rely on various online tools and services known as SaaS (Software-as-a-Service) applications. These applications offer many benefits, such as cost-effectiveness and ease of use, but they also bring security challenges, especially when it comes to managing user access. This blog post will discuss the importance of SaaS Identity and Access Management (IAM) and the growing problem of shadow IT.

What is IAM and Why is it Important?

IAM stands for Identity and Access Management. Imagine it as a system that controls who can enter different rooms in a large building. In the context of technology, IAM ensures that only authorized individuals (users) have access to specific resources, such as applications, data, and systems. Think of it like a digital security guard who checks everyone's ID before letting them in.

IAM is crucial for maintaining security and protecting sensitive information. Without proper IAM, unauthorized individuals could gain access to confidential data, leading to data breaches and other security risks.

Understanding SaaS IAM

SaaS IAM is a specific type of IAM focused on managing user access to SaaS applications. It helps companies control which employees can use which applications and what level of access they have within those applications.

SaaS IAM is particularly important because of the increasing popularity of SaaS applications and the rise of remote work. When employees work from different locations and use various devices, it becomes more challenging to manage access and ensure security. SaaS IAM solutions provide a centralized way to control access to SaaS applications, regardless of where employees are working or what devices they are using.

The Rise of Shadow IT

Shadow IT refers to using software or IT services within an organization without the IT department's knowledge or approval. It's like someone sneaking into that large building without the security guard noticing. This often happens when employees find tools they believe will help them be more productive and start using them without informing the IT department.

While these tools may seem helpful, shadow IT can pose significant security risks. When the IT department doesn't know what applications are being used, they can't ensure those applications are secure or properly managed. This can lead to data breaches and compliance violations. A study found that a surprising 65% of SaaS applications used in businesses were unsanctioned, meaning the IT department was unaware of their use.

Several factors contribute to the rise of shadow IT:

• Easy access to SaaS applications: It's incredibly easy for employees to sign up for and start using SaaS applications without involving the IT department.
• The shift to remote work: With more employees working from home or other locations, it's become more difficult for IT departments to track and manage software usage.
• Employees' desire for productivity: Employees often adopt new tools to improve their work efficiency, even if those tools haven't been approved by the IT department.

The Impact of Shadow IT

Shadow IT can have serious consequences for businesses:

• Security breaches: Unapproved applications may have security vulnerabilities that can be exploited by attackers.
• Compliance violations: Using unsanctioned software may violate industry regulations or company policies.
• Increased costs: Overlapping functionalities in different applications can lead to wasted spending.
• Lack of visibility: IT departments lose visibility into what applications are being used and how data is being handled.

Protecting Your Company's Data

To protect their data and mitigate the risks of shadow IT, businesses should take proactive steps:

1. Develop a clear IT governance framework:
   Establish clear policies for software procurement, usage, and decommissioning. This framework helps define rules and guidelines for using technology within the organization.

2. Conduct regular software audits:
   Regularly check which software is being used across the organization to identify any unapproved applications. Think of this as the security guard doing a walkthrough of the building to ensure no one is sneaking around.

3. Implement a SaaS management platform:
   Use a centralized platform to manage all SaaS applications, giving the IT department visibility into software usage and the ability to control access. It's like having a master control panel for the building's security system.

4. Strengthen access controls and authentication:
   Implement measures like multi-factor authentication and password managers to prevent unauthorized access. This adds extra layers of security to the building's entrances.

5. Foster open communication and collaboration:
   Encourage communication between the IT department and employees to ensure technology needs are met while maintaining security. This helps build trust and understanding between the security guards and the building occupants.

6. Provide approved alternatives:
   If employees need specific tools, offer them secure and approved alternatives to unsanctioned applications. It's like providing a safe and authorized way for people to access the resources they need in the building.

7. Educate employees:
   Train employees on data security best practices, such as recognizing phishing attempts and reporting suspicious activities. Think of this as giving the building occupants safety training so they can identify and report potential dangers.

SaaS IAM for Small and Midsize Businesses

Small and midsize businesses (SMBs) might not have the same resources as larger companies to invest in expensive IAM solutions. However, they can still implement effective SaaS IAM strategies by leveraging cloud-based solutions like Microsoft Entra ID (formerly Azure AD) or Google Workspace.

These platforms offer robust IAM features at a more affordable price. SMBs can integrate these platforms with SaaS management tools to create a comprehensive and cost-effective IAM solution.

Here's a simple strategy that works well for many SMBs:

1. Microsoft Entra ID or Google Workspace:
   Start by integrating Microsoft Entra ID or Google Workspace into your IAM strategy. These platforms centralize user authentication and enforce access policies.

2. SaaS Management Platform:
   Once you have Microsoft Entra ID or Google Workspace in place, choose a SaaS management platform that suits your needs and budget. These platforms provide visibility into software usage and help manage user access.

3. Synergy Between Cloud IAM and SaaS Management:
   Use Microsoft Entra ID or Google Workspace to manage user identities and access across your cloud environment. The SaaS management tool provides granular control over your SaaS applications.

By taking these steps, SMBs can enhance data security, streamline access management, and address the challenges of shadow IT without overspending.

Conclusion

In today's digital landscape, SaaS IAM is essential for businesses of all sizes. It helps protect sensitive information, ensures compliance, and reduces the risks associated with shadow IT. By understanding the importance of SaaS IAM and taking proactive steps to implement effective security measures, businesses can embrace the benefits of SaaS applications while safeguarding their valuable data.

Is your company struggling with shadow IT, SaaS sprawl, and the potential security risks that come with them? Don't let unmanaged software usage leave you vulnerable. AlphaSaaS helps you regain control of your SaaS landscape!