Cloud-based SaaS software has revolutionized business. Company IT departments are freed from the endless drudgery of keeping the software updated and running in a safe and secure environment. Non-IT people can generally access utilities and applications to smooth workflow and initiate collaboration across the company, among other things. SaaS is great, but the ease of deployment that makes it so desirable can also make it unmanageable.
What is Shadow IT?
When employees create and deploy [rogue] IT solutions independently and without involvement and support from Corporate IT or Management. Typically, they do this because they feel Corporate IT is too busy, too slow, or too bureaucratic to meet their needs. They don’t want to go through the approval process, only to be turned down and further delayed from achieving their goals. Ultimately, it’s easier for them to go around IT and deal with the consequences later.
Why is it a Tsunami?
Historically, Shadow IT solutions were developed over time, requiring significant and identifiable effort and cost. With the advent of web-based Cloud Services and SaaS Platforms, this can be accomplished by anyone in the Company with almost no effort and in seconds with a simple click of a “sign-up” button and a credit card.
Should I care about Cloud Shadow IT?
Shadow IT can waste money. If multiple employees or departments are paying for the same or similar Cloud Services without any centralized management or reporting, your Company may be spending significantly more than necessary for the services.
Even when the Cloud Services are authorized, utilization and charges for the services may not be managed properly. Often, we see they are not audited monthly and are over-subscribed, or they are charged back improperly to departments, general overhead, or IT.
Top Cloud Services Companies to watch out for
- Amazon Web Services (AWS)
- Google Cloud
- Microsoft Azure and Office 365
- Ring Central
- J2 Global
- Veeva Systems
How can 4T Help?
We bridge the communication gap between IT and Accounting. We analyze the Cloud Services invoices, research the scope and usage, and work with our clients to properly identify and allocate the associated costs.
4TelecomHelp’s Cloud Expense Management services help you get control of your cloud spend with the following processes:
- Identify your Cloud Services providers.
- Analyze your Cloud Services invoices and utilization reports to identify the type and quantity of services in use from each Cloud Services provider, including duplicate or overlapping services.
- Determine recommended cost center allocations.
- Monthly invoice processing and reporting.