Unmanaged SaaS applications: why care?

In today's digital age, it's not uncommon for employees to adopt their own tools and software solutions for work purposes. While this may seem innocuous, unmanaged software-as-a-service (SaaS) applications can create a host of problems for organizations. In this blog post, we'll explore the risks of unmanaged SaaS applications, including the supply chain vulnerabilities they can create, and discuss the importance of prioritizing SaaS security in your organization. We'll also provide best practices for managing unmanaged SaaS applications and the key benefits that come with doing so.

Understanding Unmanaged SaaS Applications

Unmanaged SaaS applications refer to those that are not managed by an organization's IT department. These applications are often adopted by individual employees, teams, or departments that need them. This can lead to the phenomenon known as shadow IT, which can cause various problems.

• Increased IT costs
• Compliance issues
• SaaS sprawl
• Security breaches

Using unmanaged SaaS applications can cause SaaS sprawl, which can make it difficult to get an accurate view of all the applications in use. This, in turn, can create security risks and put sensitive data at risk. SaaS sprawl can also lead to data fragmentation, which can make it difficult to integrate data across different systems.

Overall, unmanaged SaaS applications can cause significant risks to an organization, and it's important to establish policies and procedures to manage them effectively.

Risks of Unmanaged SaaS Applications

Using unmanaged SaaS applications can pose several risks to an organization, including:

Security Risks

Unmanaged SaaS applications can pose a risk to the security of sensitive data. These applications may not have the same level of security as applications that are managed by an organization's IT department. They may not have the necessary updates or security patches, making them vulnerable to cyberattacks. Additionally, these applications may not be compliant with industry-specific regulations, which can lead to compliance issues.

Increased IT Costs and Inefficiencies

Using unmanaged SaaS applications can lead to increased IT costs and inefficiencies. These applications may not integrate well with existing systems, requiring additional resources to manage and maintain. Additionally, there may be duplicate applications in use, which can result in wasted resources and increased costs. The lack of standardization can also make it difficult to provide support or training to employees.

Lack of Visibility and Control

Unmanaged SaaS applications can lead to a lack of visibility and control over the data and systems. If there are multiple applications in use, it can be difficult to get an accurate view of all the data being used. Additionally, if individual employees are using different applications, it can be challenging to manage user access and permissions. This lack of control can result in data breaches and other security risks.

Data Fragmentation

Unmanaged SaaS applications can result in data fragmentation, making it difficult to integrate data across different systems. If each team or department is using a different application, it can be challenging to create a complete picture of the data. This can result in data inconsistencies and make it difficult to provide accurate reporting or analysis.

Overall, unmanaged SaaS applications can create several risks for an organization, including security breaches, compliance issues, increased IT costs, inefficiencies, a lack of control, and data fragmentation.

The Supply Chain Vulnerabilities Posed by Unmanaged SaaS Applications

Unmanaged SaaS applications can create vulnerabilities in an organization's supply chain, potentially leading to cyberattacks, data breaches, and financial losses. Some of the supply chain risks posed by unmanaged SaaS applications include:

• The use of unapproved software, which may not meet the organization's security standards.
• The use of unsecured networks, which can expose the organization's data to unauthorized access.
• Weak access controls, which can allow unauthorized access to sensitive data.

Organizations must take steps to assess and mitigate the risks posed by unmanaged SaaS applications in their supply chain. This includes establishing policies and procedures for software acquisition and management, as well as conducting regular audits of SaaS applications to identify unmanaged instances. Access controls, user authentication, and monitoring tools can also be implemented to improve visibility and control over SaaS applications.

Effective collaboration and communication between IT and business units is important to proactively manage SaaS applications and prevent supply chain vulnerabilities. By prioritizing SaaS security and properly managing these applications, organizations can mitigate risks and improve their overall security posture.

The Importance of Prioritizing SaaS Security in Your Organization

SaaS security is critical to an organization's ability to protect sensitive data. It is important to prioritize security measures to prevent unauthorized access to data or systems. Security measures must be taken to ensure data privacy, integrity, and availability.

Establishing security policies and procedures can help to minimize security risks from unmanaged SaaS applications. Training employees on security best practices can help to reduce the risk of security breaches caused by human error.

Managing the Unmanaged. Best Practices for Your Business

Managing unmanaged SaaS applications is critical to protecting sensitive data and mitigating associated risks. Here are some best practices for managing unmanaged SaaS applications in your business:

Create Formal Policies and Procedures for Software Acquisition and Management

Create formal policies and procedures for the acquisition and management of software. These policies should outline the process for obtaining and deploying new software, and the criteria for approving and monitoring the use of SaaS applications.

Conduct Regular Audits of SaaS Applications

Regular audits of SaaS applications can help to identify unmanaged instances. These audits should include a review of all SaaS applications in use, identifying the individuals or departments using them, and evaluating their benefits and risks.

Implement Access Controls, User Authentication, and Monitoring Tools

Implement access controls, user authentication, and monitoring tools to improve visibility and control over SaaS applications. These controls should restrict access to SaaS applications to authorized personnel, and monitor user activity to detect and respond to potential security breaches.

Create a Centralized SaaS Management System

Create a centralized SaaS management system to streamline the management of these applications. This system should include tools to manage access controls, monitor usage and activity, and provide reporting on SaaS applications deployed across the organization.

Collaborate and Communicate Between IT and Business Units

Collaboration and communication between IT and business units is important to effectively manage SaaS applications. Both teams should develop a shared understanding of the organization's SaaS applications and their associated risks, and work together to create and implement effective SaaS management policies and procedures.

By implementing these best practices, your organization can effectively manage unmanaged SaaS applications, reduce IT costs, and improve the overall security posture of your organization.

Key Benefits of Managing SaaS Solutions

• Improved Security: Managing SaaS applications can help to improve security and reduce the risk of data breaches.
• Cost Savings: Organizations that effectively manage their SaaS applications can reduce IT costs and increase efficiencies.
• Prevent SaaS Sprawl: Controlling SaaS applications can help to prevent SaaS sprawl and data fragmentation.
• Increased Visibility and Control: Managing SaaS applications can help to improve visibility and control over the organization's IT environment.
• Supply Chain Risk Mitigation: Managing SaaS applications can help to mitigate supply chain risks and improve the overall security posture of the organization.

Conclusion

Unmanaged SaaS applications can pose significant risks to an organization's security and efficiency. Shadow IT, SaaS sprawl, and supply chain vulnerabilities are just a few of the potential problems that can arise from unmanaged SaaS applications. Prioritizing SaaS security and implementing proper management practices can help to mitigate these risks and improve the organization's overall security posture. By creating formal policies and procedures, conducting regular audits, and implementing access controls and monitoring tools, organizations can effectively manage their SaaS applications and reap the benefits of increased security, reduced costs, and improved control over their IT environment.

‍