What is Data Security in SaaS?

Legal and Compliance

Explore the complexities of SaaS data security. Learn who's responsible, common challenges businesses face, and essential best practices for safeguarding your data in the cloud.

What is data security in SaaS?

Since SaaS providers deliver their software over the cloud, protecting data is also the responsibility of the provider. The organization plays a role in managing its personal data too, but handling sensitive information means SaaS companies should implement essential security protocols. 

SaaS companies can achieve data protection in a number of ways:

  • Secure encryption
  • Policing access controls
  • Auditing security systems
  • Develop protocols for incident response
Pro Tip

Seek out providers who have been certified in security standards such as SOC 2 or ISO 27001.

Who is responsible for security in SaaS?

SaaS providers and their customers are both responsible for the security of the software. While the SaaS infrastructure and environment must be managed by the vendor, users need to correctly handle access, data, service usage, privacy, and employee training within the organization. 

Pro Tip

Make sure your shortlist of potential SaaS providers can comply with the required security and privacy standards of your business.

What are the key challenges businesses face with SaaS data security?

Here are three key data security challenges SaaS businesses face:

  • Relying on the vendor for security compliance: clients don’t host the software, so they need SaaS companies to take care of information security. 
  • Adhering to rules is complex: different standards in various areas of operation make security compliance a complex domain.
  • Trusting third parties: SaaS providers rely on different third-party systems that may not follow security guidelines, allowing security issues to appear.
Tip

Research any potential SaaS partners thoroughly. Vet their security processes. Request evidence of certification and disclosure of third-party vendors at minimum.

What are the best practices for ensuring data security in a SaaS environment?

Data security techniques include:

  • Be rigorous about choosing vendors: your reputation is on the line, so choose software that has a track record of tough security measures. 
  • Enforce multi-step access controls: require users to verify their identity with multi-factor authentication and make strong passwords mandatory. 
  • Use data encryption: protect data from malicious actors in rest and transit in the event of a data breach. 
  • Check for security risks: regularly test your system for vulnerabilities without waiting for a breach to occur.
  • Train employees in security: make sure everyone using your software understands the importance of best practices in handling personal data.

Conclusion

Overcome the risks of using cloud-based software delivery models using security best practices. Use the right vendors, rigorously research security compliance, and adhere to your own security protocols.

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