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Glossary

Shadow IT

Also called SaaS sprawl

Shadow IT is software a team buys or signs up for without central approval, often on a card, so nobody else knows it exists.

Why it matters to a budget owner

Self-serve signups make shadow IT easy. The contract is a click-through and a confirmation email, and the renewal goes on a card that nobody reviews.

Card statements and expense reports are where shadow IT shows up. Add those vendors to the register, with the confirmation email as the contract.

What to record

  • The vendor and who signed up
  • The confirmation email or terms link
  • The card or budget it bills to

Frequently asked questions

Is a confirmation email really a contract?

For most self-serve software, yes. You accepted the published terms when you signed up, and the email records the plan and price.

General working knowledge about commercial contracts, not legal advice. Your own agreement governs.

Glossary

  • Vendor registerA vendor register is one list of every vendor a company or team uses, with what each does, who owns it and what contract applies.
  • Vendor ownerA vendor owner is the person accountable for a vendor relationship: whether to keep it, renew it and what it is worth.