top of page
  • John Harden

Shadow IT Is Impacting The Way You Serve Your Clients

Digital disruption is here, and it’s here to stay. There are now, in most cases, more SaaS tools in your client’s ecosystem than there are employees at the company. This may sound overwhelming, but it’s time to saddle up because it’s not slowing down. 

Shadow IT causes lots of client problems including data sprawl, security breaches, and rampant expenses. The fact that you really no longer have any idea what is going on with your client’s technology is an even scarier problem.

IT Departments cannot handle Shadow IT and they need you! They need their trusted advisors now to help out.

What Is Shadow IT? Why is it such a big deal?

Shadow IT is simply technology and SaaS applications that exist in an organization without approval from the IT departments.

According to recent Gartner studies, nearly 30 to 40% of IT in your client’s businesses are Shadow IT. It’s common that we hear from MSP leaders about how their clients don’t use a lot of SaaS tooling. The scary thing is that the leader isn’t intentionally incorrect. They are simply not aware of how rampant Shadow IT has gotten. 

Cisco Reports that IT Managers estimate around 51 applications running on the company cloud when that number is actually closer to 730.

Industry analysts predict that one-third of successful attacks will be on their shadow IT resources. This means now more than ever, it is critical that as an MSP offering a holistic approach to Managed Security, that Managed SaaS & Shadow IT be part of the picture.

Why does this impact my MSP?

Working With a Client

Not only do they store their most valuable information in SaaS, but this is where their entire business processes are built. Client’s are building their entire businesses around SaaS and they need you to help manage it! 

This isn’t a problem that’s simply going to go away either. SaaS growth isn’t slowing down. Research done by Profitwell shows that SaaS is growing 30% per year. SaaS spend is expected to reach $143.7 billion by 2022.

SaaS is now what drives modern businesses. Network and infrastructure services aren’t going away, but they’re not growing nearly as fast as cloud-based SaaS needs. It’s time to get on the next wave in the industry, Managed SaaS Ops. With 28% of IT spending shifting to the cloud by 2022, it’s time for you to adjust the sails of your practice. It’s time to start focusing on where your clients are making investments, SaaS.

How Can We Wrangle Shadow IT For Our Clients?

It’s clear that shadow IT isn’t slowing down. Every month that Managed SaaS Ops gets pushed back on your MSP’s to-do-list, more shadow IT is being introduced in your client’s environment.

An audit is essential to identifying shadow IT and transitioning the tools to sanctioned IT. Sanctioned IT has clear business purposes, identified business owners, and identified application approval states. The first step is having Shadow IT discovered. Afterward, it’s critical that you set up recurring processes to keep the SaaS ecosystem managed. 

Check out our MSP Managed SaaS Playbook guide to understand more about how you can unlock Managed SaaS Ops, or schedule a demo below! 


Ready to wrangle your clients' SaaS stacks?

bottom of page