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Shadow IT Risk and Reward

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Chris Haddad
Chris Haddad

This document discusses shadow IT and provides recommendations for how enterprise IT can embrace it. It defines shadow IT as solutions developed without enterprise IT oversight and explains why teams turn to it for freedom, ownership, and ego. Trends like externalization, consumerization, and democratization of technology are driving its growth. The document recommends that enterprise IT address barriers preventing shadow IT from adopting standards, extend solutions to shadow IT teams, and merge policies with their environments to bridge the divide between the two.

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Embrace Shadow IT September 2014 Chris Haddad @cobiacomm http://blog.cobia.net/cobiacomm
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
Who is Shadow IT? Image Source: : http://www.apriso.com/blog/wp-content/uploads/2012/08/Shadow_IT_continued.jpg/
Who is Shadow IT? YOU - Just Follow Human Nature EGO OWNERSHIP FREEDOM Image Source: http://upload.wikimedia.org/wikipedia/commons/thumb/8/85/Aromatase_3EQM.png/1280px-Aromatase_3EQM.png
FREEDOM Shadow IT Teams value the freedom to • Create • Innovate • Set Development Pace and Scope • Choose Cost Structure
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
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
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
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
Driving Shadow IT Growth Externalize, Consumerize, and Democratize (ECD) Trend • Externalize (Cloud services) – Infrastructure: Amazon AWS – Dev Platform: WSO2 Cloud – Software: SalesForce.com • Consumerize (BYO*) – Smartphones: iPhone – File Sharing: DropBox, Flickr – Contact Lists: LinkedIn • Democratize (Lower cost/expertise) – Point and click development – Virtualization, containers
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: http://www.informationweek.com/it-leadership/gartner-2013-tech-spending-to-hit-$37-trillion/d/d-id/1106985 80% of the respondents said they used SaaS applications that had not been approved by IT • Source: http://www.computerworld.com/article/2598551/malware-vulnerabilities/shadow-cloud-services-pose-a-growing-risk- to-enterprises.html
Can you meet business team delivery date?
Shadow Solutions are within reach! Common Operating Principle: Beg for Forgiveness, Don’t Ask For Permission Source: http://upload.wikimedia.org/wikipedia/commons/thumb/2/26/Gingerbread_Cookies_1.jpg/1076px-Gingerbread_Cookies_1.jpg
Shadow IT Teams are Well-Funded 14 (and autonomous) 35% of enterprise IT expenditures will happen outside of the corporate IT budget in 2015. 37% of respondents say the rate of outside spending is on the rise, up from 22% last year. 21% of CIOs retain full spending authority
Shadow IT Team Reality • Shadow IT project funding is outside Enterprise IT oversight. • Shadow IT infrastructure selection is outside Enterprise IT oversight. • Shadow IT team resource pool has limited interaction and collaboration with Enterprise IT. • Cloud services (IaaS, PaaS, SaaS) provide compelling and useful solutions for Shadow IT with few adoption barriers
The Enterprise IT – Shadow IT battle 16 Dev Teams Biz Users IT I have a solution, but can’t deploy I need a quick solution for problem ‘x’ Not compliant with the policies I can fund and provide hosting. ?..#@$% CIO CFO ♬♪ 1 2 3 4
Shadow IT Dangers • Security holes • Non-compliance with corporate policies • Poor Quality of Service (QoS) • Hidden costs (management, monitoring, security, agility)
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
Enterprise IT Challenges when working with Shadow IT teams • Architecture • Development Lifecycle Processes • Governance • Tooling
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
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
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
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
Embrace Shadow IT • Understanding the Shadow IT mindset • Bridge the divide • Accelerate solution development • Empower every team to build in an enterprise-safe manner.

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Shadow IT Risk and Reward

  • 1. Embrace Shadow IT September 2014 Chris Haddad @cobiacomm http://blog.cobia.net/cobiacomm
  • 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. Who is Shadow IT? Image Source: : http://www.apriso.com/blog/wp-content/uploads/2012/08/Shadow_IT_continued.jpg/
  • 4. Who is Shadow IT? YOU - Just Follow Human Nature EGO OWNERSHIP FREEDOM Image Source: http://upload.wikimedia.org/wikipedia/commons/thumb/8/85/Aromatase_3EQM.png/1280px-Aromatase_3EQM.png
  • 5. FREEDOM Shadow IT Teams value the freedom to • Create • Innovate • Set Development Pace and Scope • Choose Cost Structure
  • 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. 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. 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. 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. Driving Shadow IT Growth Externalize, Consumerize, and Democratize (ECD) Trend • Externalize (Cloud services) – Infrastructure: Amazon AWS – Dev Platform: WSO2 Cloud – Software: SalesForce.com • Consumerize (BYO*) – Smartphones: iPhone – File Sharing: DropBox, Flickr – Contact Lists: LinkedIn • Democratize (Lower cost/expertise) – Point and click development – Virtualization, containers
  • 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: http://www.informationweek.com/it-leadership/gartner-2013-tech-spending-to-hit-$37-trillion/d/d-id/1106985 80% of the respondents said they used SaaS applications that had not been approved by IT • Source: http://www.computerworld.com/article/2598551/malware-vulnerabilities/shadow-cloud-services-pose-a-growing-risk- to-enterprises.html
  • 12. Can you meet business team delivery date?
  • 13. Shadow Solutions are within reach! Common Operating Principle: Beg for Forgiveness, Don’t Ask For Permission Source: http://upload.wikimedia.org/wikipedia/commons/thumb/2/26/Gingerbread_Cookies_1.jpg/1076px-Gingerbread_Cookies_1.jpg
  • 14. Shadow IT Teams are Well-Funded 14 (and autonomous) 35% of enterprise IT expenditures will happen outside of the corporate IT budget in 2015. 37% of respondents say the rate of outside spending is on the rise, up from 22% last year. 21% of CIOs retain full spending authority
  • 15. Shadow IT Team Reality • Shadow IT project funding is outside Enterprise IT oversight. • Shadow IT infrastructure selection is outside Enterprise IT oversight. • Shadow IT team resource pool has limited interaction and collaboration with Enterprise IT. • Cloud services (IaaS, PaaS, SaaS) provide compelling and useful solutions for Shadow IT with few adoption barriers
  • 16. The Enterprise IT – Shadow IT battle 16 Dev Teams Biz Users IT I have a solution, but can’t deploy I need a quick solution for problem ‘x’ Not compliant with the policies I can fund and provide hosting. ?..#@$% CIO CFO ♬♪ 1 2 3 4
  • 17. Shadow IT Dangers • Security holes • Non-compliance with corporate policies • Poor Quality of Service (QoS) • Hidden costs (management, monitoring, security, agility)
  • 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. Enterprise IT Challenges when working with Shadow IT teams • Architecture • Development Lifecycle Processes • Governance • Tooling
  • 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. 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. 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. 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. Embrace Shadow IT • Understanding the Shadow IT mindset • Bridge the divide • Accelerate solution development • Empower every team to build in an enterprise-safe manner.

Editor's Notes

  1. Shadow IT (also called rogue IT) brings risk and reward to IT business solution development. Because ECD (externalization, consumerization, and democratization) trends are driving significant Shadow IT project growth, Enterprise IT teams must adapt and address Shadow IT requirements, autonomy, and goals. By understanding the Shadow IT mindset and bridging the divide between the two groups, Enterprise IT teams can embrace Shadow IT as a beneficial solution development partner. In this presentation, learn: Why Teams Lean Towards Shadow Activity Trends Impacting IT Budget and Centralized Enterprise IT Authority The Enterprise IT Delivery Gap Steps to Build a Common Team Mindset
  2. Who is Shadow IT? Any team building or deploying mobile, API, micro-service, analytics, data, or applications using non-sanctioned enterprise tools, languages, infrastructure or environments. Image Source: : http://www.apriso.com/blog/wp-content/uploads/2012/08/Shadow_IT_continued.jpg/
  3. Shadow IT is you (even if you are in enterprise IT). Human nature dictates that we all desire freedom, ownership, and satisfying our ego. We all desire to color outside the lines. Image Source: http://upload.wikimedia.org/wikipedia/commons/thumb/8/85/Aromatase_3EQM.png/1280px-Aromatase_3EQM.png
  4. Human nature craves freedom. IT teams desire the freedom to Create Innovate Set Development Pace and Scope Choose Cost Structure
  5. Shadow IT teams desire to manage and operate at their own pace under their own control. Shadow IT teams value: Fast, iterative schedules Low Cost Structure Minimizing delivery hurdles Easy to build and spin up a business solution
  6. Another major hurdle to adopting enterprise IT solutions, teams may not have the skills and best practice knowledge to use new tools, patterns, and processes. Enterprise IT must lower the adoption hurdle. Source: http://rap.genius.com/Xeezy-x-man-lyrics#note-1312310
  7. 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
  8. For the last decade, IT has been trending towards the ECD pattern. IT capabilities and services are being Externalized, Consumerized, and Democratized. The ECD trend is driving and accelerating Shadow IT growth. 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
  9. Enterprise IT Mandate: 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
  10. An enterprise roadmap: 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
  11. Enterprise IT teams can follow a five-step roadmap empowering Shadow IT teams with pre-built, building blocks and solution accelerator packs. Focus on externalizing enterprise infrastructure as building block services and offering a self-service environment that provides useful solution accelerators. A five-step roadmap should include: Building easy to adopt Enterprise APIs [e.g. master data, business processes, identity] Extend your identity management model to embrace Shadow IT development agencies and Software as a Service identity repositories Add software development lifecycle processes, governance, and security models that are Shadow IT friendly Offer a DevOps PaaS enabling Shadow IT development. Offer approved Software as a Service, APIs, and applications via an Enterprise App Store
  12. By ensuring building blocks address Shadow IT autonomy, freedom, ownership, and ego, Enterprise IT can encourage adoption of approved infrastructure, frameworks, and environments. Before presenting a building block to a Shadow IT team, carefully evaluate it against the following 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
  13. understanding the Shadow IT mindset, you can bridge the divide, accelerate solution development, and empower every team to build in an enterprise-safe manner.