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Minimizing Risks for SaaS Solutions

10 mins read
written by
Dhoof Mohamed

Are you using software as a service (SaaS), also called cloud services? Many companies move to SaaS solutions because the total costs are lower and they take a lot of work off of your IT team’s plate. It can be a great solution. The problem that is many companies overlook the risks associated with SaaS solutions.

For example, some companies that provided SaaS have shut down due to financial problems. And at least one respectable SaaS provider has shut down after a severe hacking incident. When that happens, companies can and do lose data that they thought was safe.

It’s important to be aware that using SaaS carries many of the same risks as other IT options --  they are just transferred to a third party. That is why for SaaS, you should:

1) Research Your SaaS Provider

First, you need to understand how critical the data your provider will manage is for you. The more critical your data, the more important it is to choose an established, financially stable company. Then, check out the provider in detail. How long have they been in business? Are they financially stable? Are there any concerns about their ability to deliver over the long term? And while an SaaS provider like is going to be more stable than a small CRM provider, remember that neither is bullet proof. Which brings us to point #2:

2) Always Backup Critical Data

Even if you choose a reputable, established SaaS provider, backup your critical data. Most providers offer an easy way to backup data. If they don’t, you should use a different provider.

SaaS is a often a good solution for small and midsize companies. It allows you to outsource some of your IT infrastructure and keep it all up-to-date at a reasonable cost. Just be aware that there are still risks. And with the right strategy, you can minimize the risks.

Choose the Right SaaS Providers

If you would like guidance on choosing the right SaaS provider, we would be glad to help. We provide unbiased recommendations (since we do not resell any services) on SaaS providers and other IT investments. Because we help a lot of companies choose their SaaS services, we have already done a lot of research on which providers are the most reliable. Contact us to schedule a time to talk.

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