5 Hidden Dangers Of Unmanaged Saas Applications

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The rapid growth of Software as a Service (SaaS) applications has revolutionized the way businesses operate, offering unprecedented flexibility, scalability, and cost savings. However, the convenience and ease of use of SaaS applications can also lead to a lack of oversight and management, resulting in hidden dangers that can have serious consequences for organizations. In this article, we will explore five hidden dangers of unmanaged SaaS applications and provide guidance on how to mitigate these risks.

1. Shadow IT and Unauthorized Access

One of the most significant dangers of unmanaged SaaS applications is the proliferation of shadow IT, where employees use unauthorized applications to perform tasks without the knowledge or approval of the IT department. This can lead to a lack of visibility and control over sensitive data, as well as increased risk of cyber threats and data breaches.

According to a survey by Bitglass, 71% of organizations have experienced a data breach due to unauthorized access to SaaS applications. To mitigate this risk, organizations should implement a SaaS management platform that provides visibility into all SaaS applications in use, as well as the ability to monitor and control access.

Best Practices for Managing Shadow IT

• Implement a SaaS management platform to monitor and control SaaS application usage
• Establish clear policies and procedures for SaaS application usage
• Educate employees on the risks of shadow IT and the importance of using authorized applications

2. Data Security and Compliance Risks

Unmanaged SaaS applications can also pose significant data security and compliance risks. SaaS applications often store sensitive data, such as customer information, financial data, and intellectual property. If these applications are not properly secured, this data can be vulnerable to cyber threats and data breaches.

Furthermore, many SaaS applications are subject to regulatory requirements, such as GDPR, HIPAA, and PCI-DSS. Failure to comply with these regulations can result in significant fines and reputational damage.

Best Practices for Ensuring Data Security and Compliance

• Implement a SaaS management platform that provides data security and compliance monitoring
• Establish clear policies and procedures for data security and compliance
• Educate employees on the importance of data security and compliance

3. Cost and Budgeting Risks

Unmanaged SaaS applications can also lead to cost and budgeting risks. With the proliferation of SaaS applications, it can be difficult to track and manage costs, leading to unexpected expenses and budget overruns.

According to a survey by ParkMyCloud, 73% of organizations have experienced cost overruns due to unmanaged SaaS applications. To mitigate this risk, organizations should implement a SaaS management platform that provides cost monitoring and optimization capabilities.

Best Practices for Managing Cost and Budgeting Risks

• Implement a SaaS management platform that provides cost monitoring and optimization capabilities
• Establish clear policies and procedures for SaaS application usage and cost management
• Educate employees on the importance of cost management and budgeting

4. Integration and Interoperability Risks

Unmanaged SaaS applications can also lead to integration and interoperability risks. With the proliferation of SaaS applications, it can be difficult to integrate and interoperate with other applications and systems, leading to data silos and inefficiencies.

According to a survey by MuleSoft, 70% of organizations have experienced integration and interoperability challenges due to unmanaged SaaS applications. To mitigate this risk, organizations should implement a SaaS management platform that provides integration and interoperability capabilities.

Best Practices for Managing Integration and Interoperability Risks

• Implement a SaaS management platform that provides integration and interoperability capabilities
• Establish clear policies and procedures for SaaS application integration and interoperability
• Educate employees on the importance of integration and interoperability

5. Vendor Management Risks

Finally, unmanaged SaaS applications can lead to vendor management risks. With the proliferation of SaaS applications, it can be difficult to manage vendor relationships, leading to contract and licensing issues.

According to a survey by Gartner, 60% of organizations have experienced vendor management challenges due to unmanaged SaaS applications. To mitigate this risk, organizations should implement a SaaS management platform that provides vendor management capabilities.

Best Practices for Managing Vendor Management Risks

• Implement a SaaS management platform that provides vendor management capabilities
• Establish clear policies and procedures for vendor management
• Educate employees on the importance of vendor management

In conclusion, unmanaged SaaS applications can pose significant risks to organizations, including shadow IT and unauthorized access, data security and compliance risks, cost and budgeting risks, integration and interoperability risks, and vendor management risks. By implementing a SaaS management platform, establishing clear policies and procedures, and educating employees on the risks and best practices for SaaS application usage, organizations can mitigate these risks and ensure the secure and efficient use of SaaS applications.