Rise of SaaS as Integral Part of Enterprise IT

The shift to cloud-based software delivery has revolutionized how enterprises use software. Instead of investing in costly infrastructure and hiring a team of application administrators, enterprises can now turn to software-as-a-service (SaaS) providers to offer the same functionality through the web without the headaches of deployment and administration.  For most enterprises, the cost benefit of using SaaS is clear, but many are still hesitant to switch due to the potential security and compliance risks. In fact, in a survey of CIOs, security and compliance represented the top 2 of 3 barriers for adopting cloud services.

Key Security Concerns when Adopting SaaS

In a climate of increasing data privacy and governance regulations, enterprises want more security assurances from SaaS providers before they are willing to use software services that handle sensitive data. They want to understand how their data is protected, who can access that data, and what happens in the event of a data breach. Ultimately, enterprises want to retain control of their data assets. Since SaaS providers often rely on 3rd party platform services, providing customers with this level of assurance is extremely challenging. Even if the SaaS provider fully own the backend infrastructure and platform, customers are still concerned about the potential for backend administrators to access their data. Ideally, SaaS providers should be able to tell their customers that only the customers themselves will ever have access to their data.