Employees using IT resources without permission is called ‘Shadow IT,’ and it may cause grave issues with security and compliance. Some of the possible implications include data breaches, illegal access, and noncompliance with set guidelines. This issue has become increasingly challenging to manage because of the growing use of cloud services, which decrease visibility. Managing these unknown applications is more straightforward with Microsoft Entra ID, which enables users to actively manage and control these applications, thus aiding the organization in getting back to order.

With Zarpra’s specialized Entra ID management services, you can discover and govern shadow IT while maintaining compliance and mitigating risks.

The Risks of Shadow IT

Unmanaged applications create multiple challenges for businesses, including:

• Security vulnerabilities: Applications that bypass IT oversight may lack proper security measures, increasing the risk of data breaches and unauthorized access.
• Compliance issues: Many industries require strict adherence to data protection regulations, such as GDPR, HIPAA, and SOC 2. Shadow IT can lead to noncompliance and legal consequences.
• Data loss and leakage: Employees using unapproved apps may store sensitive company data in unsecured environments, exposing the organization to data leaks.
• Increased IT complexity: Managing a fragmented IT landscape becomes difficult when applications are adopted without a centralized strategy.

Understanding these risks is the first step in mitigating the impact of shadow IT. Entra ID provides an effective solution by offering visibility into cloud applications and enforcing security policies.

How Entra ID Application Discovery Works

Entra ID, combined with Microsoft Defender for Cloud Apps, enables IT teams to discover, analyze, and manage cloud applications across the organization. This functionality helps businesses:

• Detect unauthorized applications: Entra ID collects usage data from network traffic and integrates with Defender for Cloud Apps to identify applications employees access without IT approval.
• Assess security risks: Discovered applications are evaluated based on security, compliance, and risk metrics. IT teams can determine whether an app meets corporate policies.
• Control access: Organizations can enforce security policies, such as requiring multi-factor authentication (MFA) or blocking risky applications.
• Monitor application usage: Continuous monitoring provides insights into app adoption trends, allowing IT teams to refine security strategies and ensure compliance.

Steps to Reduce Shadow IT with Entra ID

Organizations can take a proactive approach to managing shadow IT with Entra ID by following these best practices:

Enable Cloud Discovery

Improve your cloud security in one step by turning on Microsoft Defender for Cloud Apps. This will identify apps your employees use automatically. Configure a collection of logs from your firewalls and proxies for end-to-end visibility to track all cloud app usage.

Assess and Classify Applications

Gain control over your application landscape by reviewing and categorizing discovered applications based on their security risk. Determine the appropriate action: sanction, monitor, or block. Empower employees to make secure choices by creating and distributing a trusted application list.

Enforce Security Policies

Enhance your security by leveraging Entra ID Conditional Access policies. Control application access dynamically based on security conditions. Implement multi-factor authentication for sensitive applications and restrict access from unmanaged or non-compliant devices, minimizing risk.

Educate Employees

Shadow IT often arises due to a lack of awareness. Educate employees on security risks, approved applications, and corporate policies. Providing secure alternatives reduces the temptation to use unauthorized apps.

Implement Governance Controls

Establish an approval and review process for new applications. Enforce privileged access management (PAM) to ensure only authorized users can enable integrations with business-critical systems.

Monitor and Adapt

Continuously monitor application usage and security trends. Review security policies regularly to meet emerging threats and evolving business needs.

How Zarpra Helps Organizations Manage Shadow IT

At Zarpra, we provide expert guidance and managed IT services to help businesses reduce shadow IT risks. Our Entra ID Application Management services include:

• Shadow IT Assessment: We analyze your current IT landscape, identifying unauthorized applications and potential security threats.
• Application Governance Strategy: Our team helps establish clear policies for application usage, approval workflows, and security controls.
• Policy Implementation: We configure Entra ID Conditional Access, Defender for Cloud Apps, and other Microsoft security tools to enforce best practices.
• Ongoing Monitoring and Compliance: Our continuous monitoring services ensure your organization remains compliant and protected against emerging threats.
• Employee Training and Support: We offer security awareness programs to educate employees on safe application usage and IT policies.

Take Control of Your IT Environment with Zarpra

As problematic as shadow IT is, businesses can proactively reclaim control over their applications without limiting user flexibility. With Entra ID Application Discovery comes the visibility and security needed to manage cloud applications effectively. Zarpra has expertise in designing and implementing effective security strategies for Entra ID, which include compliance, risk mitigation, and streamlined IT operations. Let us help you reorganize your IT environment and eliminate the risks associated with shadow IT. Contact Zarpra today.