Survey with IDG reveals that empowering business units has led to more complex audits, unchecked costs and security vulnerabilities.
In a new report from IDG Connect and Snow Software, the global leader in technology intelligence solutions, 67% of IT leaders said at least half of their spend is now controlled by individual business units. While most believe this is beneficial for their organisation, it presents new challenges when combined with increased cloud usage--56% of IT leaders are concerned with hidden cloud costs and nearly 90% worry about the prospect of vendor audits within cloud environments. The survey, conducted to understand how the rise of infrastructure-as-a-service (laaS) and democratised IT spending is impacting businesses, found that more than half of IT leaders expressed the need to gain better visibility of their IT assets and spending across their organisation.
Business Units Control a Significant Share of Tech Spend--Which is a Mixed Bag.
Traditionally, technology purchasing and management was controlled by IT departments. The cloud and as-a-service models shifted this dynamic, enabling employees throughout the organisation to easily buy and use technology without IT's involvement. IT leaders are embracing this trend, with 78% reporting that the shift in technology spending is a positive for their organisations. But decentralised IT procurement also creates new complexities for organisations as they try to manage their increasingly diverse IT estates.
The IT leaders in the study voiced concern that the shift in spending to business units:
* Increases the risk to data security
* Increases the threat of non-compliance
* Leaves cloud spending spiralling out of control
* Makes audit preparation more time-consuming and complex
In fact, more than three-fourths (78%) said audit preparation is growing increasingly complex and time consuming.
Executives are Justified in Worrying About Audits.
Results suggest that annual audits are now the rule rather than the exception--73% of those surveyed said they have been audited by at least one software vendor in the past 12 months.
When asked which vendors they had been audited by within the last year...