Article

How Microsoft Fabric enables data mesh principles to prevent shadow IT risks

Nov. 16, 2023 · Authored by Chris Wagner

In today's fast-paced business environment, organizations of all sizes face the challenge of managing their data effectively. With the proliferation of data sources and applications and the increasing demand for real-time insights, many businesses have encountered a common issue: shadow IT.

Shadow IT: A challenge every organization faces

Shadow IT refers to information technology (IT) systems, software and services used within an organization without official approval or oversight from the organization's IT department or management. This often occurs when individual employees or departments within an organization adopt their own technology solutions to address specific needs, bypassing the formal IT procurement and management processes. While it might address immediate needs, it often poses significant risks, from security vulnerabilities to compliance violations.

Shadow IT can arise for various reasons. Some common causes include a perception that the IT department needs to respond to needs faster, a desire for more specialized or user-friendly tools, or a lack of awareness about the potential risks of using unauthorized technology. Shadow IT can take many forms, such as employees using personal smartphones for work-related tasks, utilizing cloud-based storage or collaboration tools or even developing their own applications. In some cases, employees may also contract with external vendors for technology services without going through official channels.

Proponents of shadow IT argue that it can increase productivity and innovation, allowing employees to quickly adopt tools that suit their needs. It can also help organizations adapt to changing technological landscapes more rapidly. However, shadow IT can pose several risks to organizations including:

• Security vulnerabilities: One of the most significant concerns with shadow IT is cybersecurity. Unauthorized and unmonitored technology can create security gaps that malicious actors may exploit. Educating employees about the importance of data security and the risks associated with using unsanctioned tools is essential.
• Compliance violations: Depending on the industry, there may be regulatory compliance requirements that organizations must adhere to. Using unauthorized software or services can lead to compliance violations, resulting in fines and legal consequences.
• Data breaches and integration challenges