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Shadow IT Risk and Reward


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Shadow IT Risk and Reward

  1. 1. Embrace Shadow IT September 2014 Chris Haddad @cobiacomm
  2. 2. Embrace Shadow IT • Why Teams Lean Towards Shadow Activity • Trends Impacting IT Budget and Centralized Enterprise IT Authority • The Enterprise IT Delivery Gap • Building a Common Team Mindset
  3. 3. Who is Shadow IT? Image Source: :
  4. 4. Who is Shadow IT? YOU - Just Follow Human Nature EGO OWNERSHIP FREEDOM Image Source:
  5. 5. FREEDOM Shadow IT Teams value the freedom to • Create • Innovate • Set Development Pace and Scope • Choose Cost Structure
  6. 6. OWNERSHIP Manage and operate at your own pace under your own control. Shadow IT teams value: • Fast, iterative schedules • Low Cost Structure • Minimizing delivery hurdles – Easy to build and spin up a business solution
  7. 7. EGO: I know what I know. I am what I am. What I know is good enough to deliver business value. • Skills and Expertise • Best Practices • New – Tools – Patterns – Processes
  8. 8. Shadow IT Team View By operating independently, Shadow IT teams gain: • Immediate access to needed resources • Rapid, creative experimentation without red tape hurdles • An ability to tailor solution towards specific business requirements
  9. 9. Driving Shadow IT Growth Externalize, Consumerize, Democratize (ECD) Trend • Externalize – Capabilities sourced from outside your enterprise – Restrict to non-core business functions • Consumerize – Bring Your Own (BYO*) trend – Employees and partners expect a usable and rich user experience • Democratize – Everyone can perform task or acquire capability – Adoption hurdles removed
  10. 10. Driving Shadow IT Growth Externalize, Consumerize, and Democratize (ECD) Trend • Externalize (Cloud services) – Infrastructure: Amazon AWS – Dev Platform: WSO2 Cloud – Software: • Consumerize (BYO*) – Smartphones: iPhone – File Sharing: DropBox, Flickr – Contact Lists: LinkedIn • Democratize (Lower cost/expertise) – Point and click development – Virtualization, containers
  11. 11. Are you delivering what business teams want? 80% of executives today can name a critical piece of information they need but that IT is unable to provide • Source:$37-trillion/d/d-id/1106985 80% of the respondents said they used SaaS applications that had not been approved by IT • Source: to-enterprises.html
  12. 12. Can you meet business team delivery date?
  13. 13. Shadow Solutions are within reach! Common Operating Principle: Beg for Forgiveness, Don’t Ask For Permission Source:
  14. 14. Shadow IT Teams are Well-Funded 14 (and autonomous) 35% of enterprise IT expenditures will happen outside of the corporate IT budget in 2015. 37% of respondents say the rate of outside spending is on the rise, up from 22% last year. 21% of CIOs retain full spending authority
  15. 15. Shadow IT Team Reality • Shadow IT project funding is outside Enterprise IT oversight. • Shadow IT infrastructure selection is outside Enterprise IT oversight. • Shadow IT team resource pool has limited interaction and collaboration with Enterprise IT. • Cloud services (IaaS, PaaS, SaaS) provide compelling and useful solutions for Shadow IT with few adoption barriers
  16. 16. The Enterprise IT – Shadow IT battle 16 Dev Teams Biz Users IT I have a solution, but can’t deploy I need a quick solution for problem ‘x’ Not compliant with the policies I can fund and provide hosting. ?..#@$% CIO CFO ♬♪ 1 2 3 4
  17. 17. Shadow IT Dangers • Security holes • Non-compliance with corporate policies • Poor Quality of Service (QoS) • Hidden costs (management, monitoring, security, agility)
  18. 18. Enterprise IT Exists To Protect Against IT Danger • Deliver exceptional quality of service at scale • Enforce corporate security policies • Control cost • Reduce IT management burden • Apply team resource pool, skills, infrastructure, and tools across multiple IT projects
  19. 19. Enterprise IT Challenges when working with Shadow IT teams • Architecture • Development Lifecycle Processes • Governance • Tooling
  20. 20. Enterprise IT Goals • Embrace Shadow IT by making the right thing to do the easy thing to do for Shadow IT. • Find common ground between Shadow IT goals and Enterprise IT goals • Bridge the divide between Enterprise IT compliance and Shadow IT experimentation
  21. 21. Enterprise IT Mandate • Address barriers preventing Shadow IT from adopting Enterprise IT standards • Extend Enterprise IT solution reach across heterogeneous Shadow IT teams • Merge Enterprise IT policy with Shadow IT development and run-time environments
  22. 22. Enterprise IT Roadmap 1. Building easy to adopt Enterprise APIs [e.g. master data, business processes, identity] 2. Extend your identity management model to embrace Shadow IT development agencies and Software as a Service identity repositories 3. Add software development lifecycle processes, governance, and security models that are Shadow IT friendly 4. Offer a DevOps PaaS enabling Shadow IT development. 5. Offer approved Software as a Service, APIs, and applications via an Enterprise App Store
  23. 23. Building Block Evaluation Criteria • Provides On-demand Development Team Self-service • Fosters Team Collaboration • Adapts to multiple Governance Models • Conforms with Flexible Cost Models and Fiscal controls • Presents Project Visibility, Policy Compliance Dashboards, and Audit Trails • Establishes Enterprise Management and Monitoring across heterogeneous environments and infrastructure • Federates Identity and Access Control across multiple identity, attribute, and policy information points (PIP) • Promotes Re-use
  24. 24. Embrace Shadow IT • Understanding the Shadow IT mindset • Bridge the divide • Accelerate solution development • Empower every team to build in an enterprise-safe manner.