Laptop displaying cloud applications connected across a network, representing unsanctioned cloud apps and shadow IT risks.

If you want to uncover unsanctioned cloud apps in your business, don’t start with a new policy. Start with visibility. 

In most organisations, the cloud environment that actually exists looks very different from the one shown in the IT diagram. It grows organically through small shortcuts: a file share created “just for now”, a free app that solves a problem quickly, a browser plug-in installed to meet a deadline, or an AI feature quietly enabled inside software you already use.  

In the moment, these decisions feel productive. Helpful, even. But over time, they can lead to business data being spread across tools that were never formally approved, accounts that can’t easily be offboarded, and sharing settings that don’t reflect the real level of risk.  

Why Unsanctioned Cloud Apps Are a Bigger Issue in 2026 

Unsanctioned cloud apps (often called Shadow IT) are not new. What has changed is the scale, speed, and complexity of cloud usage today. 

Research shows many IT teams believe employees use only a few dozen cloud apps. In reality, the number is often far higher — sometimes hundreds or even thousands of separate services in active use across a business.  Many of these tools have never been reviewed against company policies or security standards. 

On top of that, AI is now embedded directly into everyday applications. This means employees may be using AI-powered features without intentionally signing up for a separate AI service.  That creates a new type of risk. Business data might be analysed, processed, or shared by AI features that your organisation hasn’t evaluated or approved. 

The reality is that blocking everything simply doesn’t work anymore. Cloud services are part of everyday work. If employees can’t access tools through official channels, they will often find another way. 

Why Blocking Apps First Usually Backfires 

When businesses discover unsanctioned apps, the first instinct is often to block them immediately. However, taking a heavy-handed approach can create new problems. People may start hiding the tools they use or switching to different apps that are just as risky — or even worse. 

In other words, the behaviour doesn’t disappear. It simply becomes harder to see and manage. Instead, the most effective strategy is to understand what’s being used and why, then respond with clear governance and safer alternatives. 

The Practical Workflow for Discovering Unsanctioned Apps 

Managing unsanctioned cloud apps isn’t a one-off clean-up exercise. It’s an ongoing process that should run regularly to keep pace with new tools and changing work habits. A practical workflow usually includes five key steps. 

Discover What’s Actually Being Used 

Start by identifying the cloud applications already in use across your organisation. Many businesses already collect useful signals that can reveal this information, including: 

  • Identity and login logs 
  • Endpoint activity 
  • Network or DNS traffic 
  • Browser activity 

These sources help build a realistic inventory of cloud apps currently being accessed. 

Analyse Usage Behaviour 

Identifying apps is only the first step. You also need to understand how they’re being used. Important questions include: 

  • Who is accessing each application? 
  • What administrative actions are taking place? 
  • Is company data being shared externally or with personal accounts? 
  • Do former employees still have access? 

Understanding these behaviours helps highlight where real risks exist. 

Assess the Risk 

Not every unsanctioned application is equally dangerous. Some may simply need review or approval, while others present genuine security concerns. A practical risk assessment might consider: 

  • The sensitivity of the data involved 
  • How information is shared or stored 
  • Identity and access controls 
  • Administrative visibility 
  • Whether AI features could expose business data 

This step helps prioritise the most serious risks first. 

Tag and Classify Applications 

Once risks are assessed, applications should be categorised clearly. For example: 

  • Approved – Safe for use under defined guidelines 
  • Restricted – Allowed with limitations or monitoring 
  • Blocked – Too risky for business use 

Tagging apps makes governance easier and ensures decisions are applied consistently across the organisation. 

Take Action 

Finally, the appropriate action can be enforced. This might include: 

  • Warning users about risky behaviour 
  • Restricting access to certain applications 
  • Blocking high-risk services entirely 
  • Replacing unsafe tools with approved alternatives 

The important thing is to communicate clearly with employees and ensure they still have the tools they need to work effectively. 

💡 If you’re unsure how to manage cloud app usage safely, our Managed IT Services help businesses gain visibility and control over their IT environments. 

The New Normal: Discover, Decide, and Enforce 

Unsanctioned cloud apps aren’t going away. If anything, they will continue to grow as new SaaS platforms and AI features appear. The goal isn’t to eliminate cloud experimentation. Instead, it’s to create a repeatable process: 

  1. Discover what tools are being used 
  1. Decide which ones are acceptable 
  1. Enforce those decisions consistently 

When businesses apply this model, cloud sprawl stops being an unpredictable problem and becomes a manageable part of the IT environment. 

👉 If you’d like help building a practical cloud governance strategy, our Cybersecurity services can help identify risks and implement safer controls. 

Article used with permission from The Technology Press. 


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