Decentralization of IT Spending Puts Data at Risk

By: Absolute Editorial Team | 4/25/2017

Recent insights from IDC’s Worldwide Semiannual IT Spending Guide: Line of Business demonstrates that corporate IT spending by non-IT business units continues to rise. And it's that decentralization that puts data at risk. Here's an overview -- and insights on how to address it...

"Innovation Accelerators" spur growth in line-of-business spending

According to the report, non-IT business units will reach $609 billion in 2017, an increase of 5.9% over 2016. In the US, 62% of technology purchases in 2017 will come from line of business (LoB) spending. IDC attributes the growth in LoB spending to ‘Innovation Accelerators’ such as IoT, AI Systems and 3D printing.

“The Innovation Accelerators have put the line of business units in the frontline of the digital transformation and have forced them to work either alone with the ecosystem outside of the organization as ‘shadow IT’ or in closer collaboration with the IT department than ever before,” notes Naoko Iwamoto, Senior Market Analyst with IDC Japan

Applications and project-oriented services make up the bulk of LoB spending, including “Shadow IT” projects funded from functional area budgets without the knowledge, involvement or support of the IT department.

Decentralized IT spending, less secure solutions

A study last year demonstrated that decentralized IT purchasing has resulted in the purchase of non-secure solutions and has led to dangerous “data silos” that have increasingly fragmented IT, making organizations more vulnerable to cyberattacks. 56% of respondents in this survey believed that decentralization resulted in non-compliance.

LoB / decentralized spending makes the IT department’s job of securing data and ensuring compliance more challenging. Often, decentralized purchase decisions are empowering business units to increase innovation, responsiveness, and collaboration. While there are immediate ramifications for this shift, in terms of data security, the solution is not necessarily to clamp down on innovation -- or to wrench back control.

How to decentralize: Basic security, increased collaboration

The key to enabling decentralization is to ensure that projects meet basic security requirements and that companies implement some solutions organization-wide to eliminate data silos and increase collaboration. Absolute can help lay the framework for organization-wide oversight into data security on the endpoint and in the cloud.

Our cloud-based Device & Data Security with patented Persistence technology gives you always-on visibility and real-time remediation to protect devices, data, applications and users, on or off your network. With a constant connection to the endpoints in your deployment, you can identify if at-risk data files are being stored on the device or in unsanctioned cloud applications, allowing you to proactively respond to the presence of at-risk data with remote data delete capabilities.

Financial Services