Top 10 SMB Tech Issues: Shadow IT & Rogue SaaS
08 July 2025
Issue 4: You’ve got more tools than you think
It starts small. A free file-sharing app here. A calendar tool there. Then someone signs up for a project management platform you’ve never heard of, and suddenly, your company data is scattered across services you don’t control.
This is shadow IT — the tools, apps and platforms your team uses without official approval or oversight. It’s common, it’s often well-meaning… and it’s a growing risk.
The problem
- Data lives in places you didn’t authorise
- You can’t enforce security policies on systems you don’t manage
- There’s no central visibility, so nobody knows what’s in use
Even with the best intentions, Shadow IT can lead to serious issues — from GDPR breaches to duplicate spending and fractured workflows.
The real-world impact
- Staff share sensitive data using free tools with weak encryption
- Multiple teams pay for similar tools without knowing it
- When someone leaves, their accounts stay active — and unsecured
What good looks like
You don’t need to ban every third-party tool. But you do need a clear policy — and a simple process for requesting new ones. The goal is to strike a balance between control and flexibility.
Where to start
- Audit what tools are currently in use (look at expense claims, browser extensions, OAuth apps)
- Define your approved tools list and communicate it clearly
- Set up alerts for new cloud app usage via your firewall or endpoint management tools
The takeaway
Shadow IT isn’t just a big-company problem. SMBs are hit harder when it goes wrong, because you have fewer people to fix the fallout. Get on top of it now — and make sure your tools work for you, not against you.
Would you like some help, someone to help you manage and control your response to this? Let’s talk.