What is Shadow IT Discovery: Expose the Unknown, Protect Data

TL;DR

• Shadow IT discovery tools unveil hidden apps on your network, preventing unauthorized cloud usage while boosting security and compliance.
• SaaS management platforms and CASBs deliver real-time visibility and allow IT to control employee-approved tools, reducing guesswork in app usage.
• Eliminating shadow IT fosters collaboration: employees can request the tools they need, IT can safely integrate them, and data remains guarded.
• Policies and employee education are crucial—combined with monitoring solutions, they help you identify unapproved hardware or software.
• Strac’s continuous SaaS discovery and risk assessment streamline how you spot new shadow apps and quickly bring them under IT governance.

Gone are the days of a locked-down office network and one-size-fits-all software. Employees now use countless cloud services without IT’s stamp of approval. The result? Shadow IT—a hidden web of unmanaged apps that can expose your organization to serious risks.

That’s precisely why the race is on to discover and control these unknown tools before they compromise your data. Strac helps you seize control with real-time shadow IT discovery, policy-based enforcement, and seamless risk assessment, so you can turn a motley collection of hidden apps into a secure, unified environment.

How to Discover & Manage Shadow IT in Your Network

Shadow IT refers to the unauthorized technology—such as software, hardware, and SaaS applications—adopted by individuals or teams without the oversight of the official IT or security department. 

This often happens when employees feel they lack the right tools to meet an immediate need, so they seek unapproved apps or services to get their tasks done more effectively. While this can potentially improve productivity in the short term, it also introduces security vulnerabilities and makes it harder to maintain compliance. 

Below, we explore effective strategies for discovering and managing Shadow IT in your network.

One of the first and most important steps in managing Shadow IT is simply to know what is installed and running under your roof. This adds clarity to your overall security posture and prevents data mishaps that you may not even realize are happening.

‎Some of the most common ways to discover and manage Shadow IT include:

A. Network Scanning and Log Analysis

IT teams can collect network traffic logs from firewalls, proxy servers, VPN gateways, and routers. By examining these logs, you can spot unknown devices or unapproved cloud services in use.

When employees use unauthorized smartphone apps or SaaS tools, their network transactions often leave traces in DNS logs or network flow logs. By systematically analyzing this data, you can flag suspicious or unapproved services.

B. Endpoint Management and Asset Inventories

If your organization uses endpoint management solutions, you can program these utilities to provide an audit of the software running on every authorized device. This approach helps uncover unsanctioned software or removable media usage.

Configuration management databases (CMDBs) and IT asset management (ITAM) solutions can highlight unrecorded software and devices. Likewise, endpoint detection and response (EDR) tools can reveal suspicious executables and processes.

C. Cloud Access Security Brokers (CASBs)

CASBs act as a “gatekeeper” that sits between users and cloud services. They can identify a multitude of SaaS apps, including apps unknown to the IT department, offering deeper visibility by scanning traffic patterns. Some CASBs automatically rate the risk level of each discovered application, guiding IT teams on remediation steps.

D. Internal Surveys and Questionnaires

Sometimes, manual approaches such as user surveys or interviews are useful for educating employees on which apps are allowed and which are not. This can unearth “stealth” apps that might never appear in logs due to employees working off-premises or using personal networks.

Regular surveys prompt teams to speak openly about what they need, so IT can provide better alternatives.

E. Policy Enforcement and Governance

After the discovery phase, it’s crucial to set up policies for controlling new app installation. This includes robust change management processes and requiring official IT approval before new tools can be deployed on the corporate network.

Additionally, having a documented shadow IT policy helps employees understand the potential consequences and fosters better communication with the IT team.

Putting these strategies together ensures that you not only find instances of Shadow IT, but also address the root causes that encourage employees to go “off-grid” in search of better software or services. The discovery process is your foundation for risk mitigation and sets the stage for ongoing governance.

Tools for Eliminating Shadow IT

In many companies, the use of third-party apps accelerates collaboration and productivity. Yet, this also expands the attack surface. To address this, specialized tools have arrived on the scene for robust Shadow IT discovery, monitoring, and control.

Below are some categories and examples of the top tools used to eliminate, or at least manage, Shadow IT.

1. SaaS Management Platforms (SMPs)

A SaaS Management Platform automatically discovers every cloud-based app and subscription in your environment. It pulls data from expense management systems, Single Sign-On (SSO) logs, and corporate credit card statements. This helps you identify unapproved subscription costs or usage patterns. SMPs typically provide:

• Comprehensive App Inventory: A centralized view of both approved and unapproved SaaS tools.
• Usage Insights: Data on user adoption and frequency to highlight potential software redundancies.
• Automated Onboarding/Offboarding: Integrated workflows to provision and deprovision employee access swiftly.

By mapping out every SaaS tool in your environment, SMPs illuminate hidden adoption and streamline oversight.

2. Cloud Access Security Brokers (CASBs)

CASBs offer a real-time lens into the cloud services employees use, whether sanctioned or not. A CASB typically sits inline or uses APIs to observe cloud traffic. Through advanced analytics, it can detect suspicious cloud-based activities. Notable CASB features:

• Risk Assessment: CASBs compare each discovered app to known risk scores.
• Granular Policy Enforcement: They allow read-only access or partial restrictions to high-risk apps while keeping essential operations uninterrupted.
• Inline and API-Based Monitoring: Some solutions can directly block unauthorized SaaS traffic, while others integrate via logging or direct connections to SaaS apps to see user behavior.

3. Network Traffic Analysis (NTA) Tools

Network Traffic Analysis tools capture and analyze network flows, IP traffic, and DNS queries to root out suspicious or unauthorized connections. Some NTA tools rely on deep packet inspection (DPI) to interpret the protocols used, uncovering hidden cloud services or software. If an employee accesses an unusual third-party service, these tools alert you and record the event.

Key capabilities often included:

• Real-Time Detection: Continuous scanning of inbound and outbound traffic.
• Anomaly Scoring: AI-based scanning to correlate unusual traffic patterns against known safe usage.
• Automated Incident Response: Some platforms integrate with ticketing systems or security orchestration solutions to take immediate action, such as blocking a malicious domain.

4. Endpoint Detection and Response (EDR) and Mobile Device Management (MDM)

EDR solutions defend endpoints (PCs, servers, laptops) by collecting data on running processes, registry changes, and user behavior. This helps catch unsanctioned local software or removable media.

Meanwhile, MDM platforms let you see what apps employees install on company-owned or Bring Your Own Device (BYOD) smartphones and tablets. Combined, EDR and MDM can give you a more holistic view of your environment, identifying shadow IT usage on both desktop and mobile devices.

5. Security Information and Event Management (SIEM)

SIEM tools aggregate logs from multiple sources (e.g., endpoint security tools, firewalls, intrusion detection systems) and apply correlation rules to spot suspicious patterns.

If a new unknown application is installed on multiple endpoints or an unusual process starts sending traffic to a suspicious domain, the SIEM can immediately highlight it. This synergy of data from diverse sources helps create an early warning system for Shadow IT.

6. CASB-Endpoint Hybrids

Some advanced solutions combine on-premise EDR with offline traffic scanning for employees working outside corporate networks. This is helpful because remote work often escapes the enterprise’s traditional scrutiny.

By bridging on-site and off-site coverage, you ensure no blind spots exist for employees who adopt rogue SaaS apps well outside the corporate firewall.

7. Shadow IT-Specific Discovery Suites

An emerging category is “Shadow IT discovery tools,” often delivered as a subscription. These tools typically integrate with your email provider, corporate expense platforms, or identity management solutions (like SSO) to discover new third-party accounts as soon as they appear.

Some also rely on AI to sift through thousands of smaller SaaS vendors, providing a real-time inventory of applications and risk scores.

By leveraging these tools, organizations can effectively clamp down on Shadow IT—protecting data, strengthening compliance, and clearing up confusion about what runs in the environment.

However, simply deploying software isn’t enough. Ongoing training, well-communicated policies, and swift IT support remain essential in preventing employees from turning to unapproved apps.

How to Discover and Manage Unauthorized IT Usage?

Unauthorized IT usage extends beyond installing random software. It includes unauthorized device connections, removable media insertion into corporate endpoints, or usage of personal cloud services to store sensitive data. Identifying these behaviors is part of a broader security strategy.

A. Adopt Zero-Trust Security Principles

In a zero-trust approach, every request for device or app access is treated as potentially hostile. Tools like micro-segmentation and strict identity verification ensure that employees can only access the services sanctioned for them. If a device that’s not on your allowlist connects to the network, zero-trust solutions can isolate or block it.

B. Educate Employees Proactively

Often, unauthorized IT usage stems from employees not understanding the risks or from a genuine desire to expedite their workflows. Regular training sessions—especially for new hires—create a culture where employees feel responsible and know how to request new tools officially. Encourage them to collaborate with IT rather than circumvent it.

C. Implement Automated Alerts and Thresholds

Security solutions can be configured with thresholds to detect abnormal user behavior. For instance, a user who normally uploads 50 MB of data a day might be flagged if 500 MB of data is transferred to an unknown domain. Similarly, scanning expense reports or procurement logs can pinpoint new software purchases.

D. Embrace Inventory Checks and Audits

Conduct formal, periodic audits of software, devices, and cloud services. This often involves scanning for installed programs on endpoints (using EDR or inventory management tools) and verifying those results against an authorized software registry. By doing so at scheduled intervals, you can quickly contain newly discovered issues.

E. Centralize Log Management

With centralized logging, you collect logs from various network endpoints, servers, user workstations, and cloud services. Correlating these logs helps you connect the dots.

For example, you might find that a user is running suspicious scripts at odd hours or that a set of employees is using an unapproved file-sharing service. The earlier you detect these patterns, the more effectively you can neutralize potential breaches.

Managing unauthorized IT usage presupposes a well-rounded solution. Technical safeguards like network monitoring should pair with a receptive culture toward new tech requests.

When employees feel supported, they’re more likely to bring their needs to the IT department first, rather than adopting untested technologies behind the scenes.

Benefits of Shadow IT Discovery

Beyond mitigating threats, robust Shadow IT discovery offers tangible benefits that can streamline business operations, reduce costs, and enhance overall security maturity. Identifying and handling shadow IT usage properly does more than just close security gaps.

• Holistic Visibility: When you know exactly which apps are in use, you can optimize your license management strategy, reduce redundancies, and unify interoperable systems. This can significantly cut expenses by consolidating or eliminating duplicative SaaS subscriptions.
• Enhanced Compliance Posture: Many industries must adhere to strict regulations (e.g., HIPAA, PCI DSS, GDPR). Monitoring for Shadow IT places you in a better position to ensure that data handling consistently aligns with compliance mandates. By discovering which tools employees use, you can assess whether these apps meet necessary security baselines.

• Reduced Data Leakage: Shadow IT usage often leads to data sprawl—files or critical information scattered across unmonitored channels. Discovering these unauthorized apps and storage methods is crucial in nipping potential data leaks. By migrating data back into official repositories, you can apply standard encryption and retention policies.
• Proactive Risk Management: The faster you spot unauthorized usage, the easier it is to address vulnerabilities before they become highways for cyberattacks. Actively discovering shadow IT helps organizations shift from reactive to proactive, saving them from crisis management expenses down the line.
• Stronger Collaboration: Sometimes, shadow IT indicates employees’ preference for certain tools that are more intuitive or feature-rich than official ones. Understanding this usage can guide strategic decisions for the entire organization, allowing for the official adoption of better tools that suit user needs. This fosters a more collaborative relationship between IT and the workforce.

In essence, properly implemented Shadow IT discovery does more than just lock down your environment. It encourages healthy dialogue between employees and IT, all while ensuring that each department has the resources it needs under the watchful eye of a secure, well-managed infrastructure.

How Strac Helps with the Shadow IT Discovery

When confronting Shadow IT, organizations need solutions that unite visibility, compliance, and security controls under one comprehensive system. Strac.io provides capabilities to discover and manage unauthorized SaaS usage, consolidate data governance, and remove friction for employees who genuinely need new tools.

Below are some highlights of how Strac addresses Shadow IT:

A. Continuous SaaS Discovery in Real Time

Strac integrates with your enterprise’s existing environment—scanning email logs, expense data, identity providers, and network traffic to uncover newly adopted SaaS apps, subscriptions, or cloud services. This ensures that no matter how stealthily an app is introduced, you can see it on your dashboard.

B. Holistic View of Your SaaS Cloud Security

Alongside Shadow IT discovery, Strac’s platform dives deeper into each SaaS application’s security posture. It provides insights into which data the tool accesses, potential misconfigurations, and how users are interacting with it. This broad vantage point lets you rectify vulnerabilities immediately and maintain continuous compliance.

C. Instant Risk Assessment

If Strac uncovers a new SaaS or cloud service, it automatically checks for known risk factors—like past breaches or a lack of key security controls (e.g., SSO, MFA). By assigning each discovered app a risk score, Strac helps security teams prioritize which unauthorized services to crack down on first.

D. Automated Remediation and Employee Engagement

Using Strac, security leaders can define policies that block or quarantine newly discovered shadow apps until they pass an approval workflow. Given that employees often turn to Shadow IT for quick solutions, Strac pairs these enforcement measures with transparent steps for employees to request formal adoption.

This fosters a “trusted relationship” dynamic with staff, making it easier for them to come forward with new tool ideas.

E. Integration with Existing Toolchains

Strac’s open architecture supports integrations with SIEM tools, vulnerability scanners, or EDR platforms. This means incidents that occur get automatically correlated with relevant logs and risk alerts. In turn, your security teams spend less time juggling multiple dashboards and more time improving your overall “saas cloud security” stance.

F. Strengthening Your Compliance Framework

Whether you’re governed by HIPAA, PCI DSS, or other data protection laws, unauthorized SaaS usage can put you on the wrong side of regulators. Strac helps unify compliance across your environment by ensuring that every piece of introduced technology—discovered or approved—meets the necessary security configurations.

G. Granular Access Policies

Once a potential shadow app is unearthed, Strac enforces your corporate policies on who can view, upload, or download data within that application, limiting the risk of unauthorized data movement or exfiltration. These granular controls are especially critical for regulated industries dealing with health or financial records.

By coupling real-time detection and policy-based remediation with a user-friendly workflow, Strac helps your organization seamlessly manage the adoption of new tools while keeping your environment safe.

‎You gain deeper insights into each app’s risk profile, maintain compliance across the board, and avoid the pitfalls of unapproved services.

Ultimately, Strac’s approach empowers you to harness new technologies without leaving your security posture exposed.

Conclusion

Shadow IT discovery is a critical element in any modern security and compliance strategy. By illuminating unauthorized tools and risky usage patterns, organizations can reinforce their “saas cloud security,” lock down potential vulnerabilities, and maintain control over sensitive data flows. 

Successful Shadow IT management addresses both sides of the equation: providing employees with robust, secure solutions that meet their needs, and creating effective processes for discovering and decommissioning unapproved services.

In a world where data breaches, ransomware, and compliance violations carry steep consequences, ignoring Shadow IT is no longer an option. The best approach combines visibility—through tools like SaaS management platforms, CASBs, and advanced network analysis—with employee education and well-defined policies. 

By proactively embracing Shadow IT discovery, you can orchestrate a future where employees feel empowered to innovate, while your security posture remains strong, thorough, and deeply unified.