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Beware the covert cloud

By Cathleen O'Grady
Johannesburg, 13 Jun 2013

Employees are using the cloud, whether IT wants them to or not.

This reality was emphasised by Matt Piercy, VMware VP for northern EMEA, in his keynote address during the South African leg of the VMware Forum, in Johannesburg, yesterday.

Recent research conducted by Vanson Bourne and sponsored by VMware revealed that, in Europe, 37% of IT decision-makers suspect that staff have been purchasing unauthorised cloud services, resulting in an average spend of EUR1.6 million for every business affected in 2012 by 'covert cloud' services.

Of the 3 000 office workers surveyed, nearly half (45%) said they would use unauthorised cloud services in order to work more effectively, and 36% said they have already done so. The motivations for this rogue usage included maintaining competitiveness (18%), and working more quickly and efficiently (30%).

Knowledge workers are the worst offenders, added Piercy, with 58% saying they would use unauthorised services. Certain departments are greater offenders than others: marketing (43%), sales (33%), research and development (31%) and finance (23%) report some of the most prolific covert cloud usage.

Covert cloud is not entirely a bad thing, Piercy emphasised. Many organisations feel this spend can benefit the business in many ways, by responding faster to client demands, and improving growth and innovation. However, it does create a security threat, causing a show-down between IT's need to control and secure business data, and employees' needs to work with flexibility and agility.

"The research reveals a staggering amount of off-radar cloud spending within European businesses but it is not necessarily money being squandered. Office workers note they are often circumventing the IT department to buy cloud services to work more effectively for the good of the company," said Chris Norton, regional director for southern Africa at VMware.

For IT departments, it is no longer an option to ignore covert cloud spend, necessitating decision-making that provides the agility needed by staff, while maintaining high security standards. The survey revealed that, in many cases, IT decision-makers were planning to implement these cloud services at some point, but had not kept up with user needs.

"While many within European companies recognise the benefits of off-radar cloud spend, action needs to be taken," continued Norton. "Almost half of IT decision-makers are asking for greater dialogue with the departments involved. It's great to see employees taking the initiative to drive innovation and growth, but this could come at a premium. A proactive approach from IT, with appropriate levels of management, security and visibility, can ensure that covert clouds become a competitive differentiator and don't become a threat to the business."

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