This document summarizes the results of a survey about shadow IT and cloud services commissioned without IT involvement. Some key findings include: - Over three quarters of respondents said cloud services have been commissioned without IT involvement. The most common were SaaS applications and IaaS storage. - 83% of respondents expect shadow IT cloud usage to increase in the next two years. - Eight in ten respondents said employees use free cloud storage like Google Drive and Dropbox without approval. - Eight in ten respondents said shadow IT data stored in the cloud is critical to their organization. - Only 44% know which country their shadow IT cloud data is stored in. - Nearly three quarters think shadow IT violates their organization

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Cloud Shadow IT Survey Results
11 April 2016
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Demographics
250 IT decision makers (ITDMs) and 250 business decision makers (BDMs)
were interviewed in March 2016, split in the following ways...
…country …sector …size
200
75
150
75
UK France Germany Spain
255245
1,000-3,000 employees
More than 3,000 employees
87
78
61
60
57
57
49
26
25
Utilities (energy, oil,
gas and telecoms)
Other commercial
sectors
IT
Manufacturing and
production
Financial services
(including insurance)
Retail, distribution
and transport
Business and
professional services
Chemicals
Construction and
property

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Shadow IT – cloud services
Over three quarters (77%) of
respondents admit that cloud
services have been commissioned
in their organisation without the
involvement of the IT department
56%
48%
39%
29%
2%
19%
3%
Cloud-based application software
(Software-as-a-Service (SaaS))
Cloud-based servers and storage
(Infrastructure-as-a-Service
(IaaS))
Public cloud (e.g. Amazon Web
Service (AWS), Windows Azure,
Google Cloud Platform (GCP),…
Cloud-based virtual machines for
development and testing
Other unknown cloud service
Departments in my
organisation/my department have
never commissioned a cloud…
I don't know
Figure 8: “Which of the following cloud services have other
departments in your organisation/employees in your
department commissioned without the involvement of
the IT department?” Asked to all 500 respondents

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Will cloud shadow IT increase?
Over eight in ten (83%) respondents expect
that the amount of their organisation’s cloud
services commissioned without IT involvement
will increase in the next two years
1% 1% 1%2% 3% 2%
2% 3% 2%
11% 14%
9%
55%
61%
49%
28%
19%
37%
Total [387] ITDMs [194] BDMs [193]
We expect the amount to significantly increase
We expect the amount to slightly increase
We expect the amount to remain the same
We expect the amount to slightly decrease
We expect the amount to significantly decrease
Not sure
Figure 9: “In the next two years, how do you think the amount of
cloud services commissioned by departments in your
organisation/your department without the involvement
of the IT department will change?” Asked to respondents
where this is already happening in their organisation

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Shadow IT – free cloud storage
Over eight in ten (83%) respondents say
that employees in their organisation
use free cloud storage services without
the approval of the IT department
49%
49%
34%
30%
28%
13%
13%
8%
14%
3%
Google Drive
Dropbox
Apple iCloud
Amazon Cloud Drive
OneDrive
BT Cloud
Box
WeTransfer
Employees in my
organisation/department never use free
cloud storage services without the…
I don't know
Figure 10: “Which of the following free cloud storage services do
you think employees in your organisation/department
use for work purposes without the approval of the IT
department?” Asked to all 500 respondents

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How organisation-wide is cloud shadow IT?
Where cloud shadow IT is happening,
almost six in ten (57%) respondents state
that half or more of the departments in
their organisation are using these
services
Figure 12: “How many departments in your organisation use cloud services
that the IT department were not involved in commissioning, or
did not approve?” Asked to respondents where cloud shadow IT is
happening in their organisation

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How long cloud shadow IT has been happening
Around seven in ten (71%) respondents say
that cloud shadow IT has been happening in
their organisation for up to two years
2%
21%
22%
27%
15%
5%
4% 5%
Less than three months
Between three and six months
Between six months and one year
Between one and two years
Between two and three years
Between three and four years
Between four and five years
I don't know

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Critical data
Eight in ten (80%) respondents where
cloud shadow IT is happening in their
organisation say that the data stored
by these services is critical to their
organisation
Figure 18: “Is any of the data that is stored in the cloud services that your
organisation's IT department were not involved in commissioning,
or did not approve, critical to your organisation?” Asked to
respondents where cloud shadow IT is happening in their
organisation

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Knowledge of the location of data
Only 44% of respondents know the
country that their organisation’s
data is stored in for all cloud
suppliers used via shadow IT
44%
41%
47%
39%
43%
34%
17%
16%
19%
Total [435]
ITDMs [222]
BDMs [213]
Yes, I know where it is stored for all of the cloud suppliers we use
Yes, but only for some of the cloud suppliers we use
No, I do not know
Figure 19: “Do you know which country your organisation's data is being
stored in for the cloud services that departments/your
department are using where the IT department were not
involved in commissioning, or did not approve?” Asked to
respondents where cloud shadow IT is happening in their
organisation

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IT policies and adhering to legislations
Almost three quarters (73%) of respondents think that cloud shadow IT would be against legislations that
their organisation adheres to.
Even among those where employees in their organisation use cloud shadow IT, three quarters (74%) believe it
is against legislations.
Employees using cloud shadow IT are putting their organisations at risk by going against legislations.
58%
39%
2%
Yes, fully Yes, to an extent No
24%
23%
34%
49%
51%
38%
20%
22%
12%
6%
5%
15%
Total [500]
Has shadow IT [435]
Does not have shadow IT [65]
Yes, definitely Yes, possibly No I don't know
Figure 22: “Are you aware of your organisation's IT policies?”
Asked to all 250 BDM respondents
Figure 23: “Do you think that employees in your organisation using a cloud
service that your organisation's IT department were not involved in
commissioning, or did not approve, would be against any
legislation your organisation adheres to?” Asked to all respondents

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London E1W 1LB
NTT Survey “Cloud Shadow IT”
Conducted by Vanson Bourne
March 2016