A shadow app is a software program that is not supported by an employee's information technology (IT) department.
In the past, shadow apps were often installed locally by impatient employees who wanted immediate access to software without going through normal corporate channels. With the growth of software-as-a-service (SaaS) and cloud computing, however, the meaning has expanded to include third-party consumer software that is accessed over the Internet.
Skype, Lucidchart, Dropbox, Google Spreadsheets, Docusign and CloudOn are all popular shadow apps. Although many shadow apps can improve productivity and collaboration with little or no financial cost to the company, their use comes with risks. If an employee accesses a cloud app with his personal account, for example, corporate data may be put at risk or even lost if the employee leaves the company. Shadow apps can also cause bandwidth issues on the corporate network, slowing things down and impacting everyone's productivity.
To prevent problems, an IT department should have a service audit process in place to inspect outbound packets and verify ownership of company-owned services in the cloud. The organization should also have policy in place that requires employees to use corporate accounts for web-based applications and restrict network privileges so end users cannot install software locally. If a large group of employees is using a particular cloud app, the IT department should consider providing the service in house and finally, the IT department should educate employees about the value of corporate data and the risks that shadow apps present.