Report: Shadow IT preventing companies from getting full benefit of cloud services
- Almost half (46%) of interviewed senior IT and business decision makers say the approach they’ve taken to cloud so far has increased integration costs and led to data silos, according to a new survey sponsored by Oracle and conducted by Coleman Parkes.
- Of the respondents, 95% believe that Shadow IT is major cause of complexity in IT spending.
- The report also found that more than 60% of the typical company’s overall IT spend is now driven by individual business units versus traditional IT departments.
The study included responses from over 600 senior IT and line of business decision makers across Europe and the Middle East.
"The issues companies face with their cloud resources are less to do with the technology itself and more to do with a lack of synchronization across lines of business," said Johan Doruiter, Senior Vice President of Systems, Oracle EMEA, said.
The study also revealed that decision-makers in each department are increasingly making cloud purchasing decisions without involving the CIO due to the ease of procurement. "With integration and data management still critical to organizations, alarmingly, CIOs control less than half the IT budget in 66% of businesses," according to the study.
But with that comes the inherent threat that businesses will spend more than necessary on IT as well as purchasing solutions that are potentially already present in other parts of the business.