3 min read
There are continued doubts about the capabilities of cloud-based computing that stare back at us constantly. It’s a lot like debunking Bigfoot! You’re driving down the road, see some strange creature in the woods for a split second and you’ll wonder for the rest of time (well, until you forget) what the heck that THING was!
If you aren’t currently familiar with Software as a Service (SaaS), then you will be soon. An industry report from Summer 2013, published by Siemer and Associates, projects a 16.8% growth from now until 2015, which amounts to growth of just over $6 billion!
SaaS, or cloud-based services, provide software programs and data storage hosted in “the cloud” rather than on a company’s own computers or servers. Customers of SaaS can access the programs, like email or human resource management software, and the data through their web browser, while receiving technical support from the SaaS company.
Some have raised concerns about the cost, applicability and security of outsourcing data management. Today we’re going to take a look at 4 myths about SaaS and explain why these misconceptions might be holding you back from efficient, cost-saving services.
MYTH #1: YOUR DATA WON’T BE SECURE
Unsurprisingly, data security is one of the primary concerns raised by critics of cloud-based data systems. It is certainly understandable that some organizations are hesitant to see sensitive or confidential information in the hands of an outside company.
Is SaaS really less secure than doing it yourself?
Managing data is what SaaS providers do. As data specialists, these companies are able to invest into extensive security systems that your in-house data-management departments may not be able to.
Tips: Which SaaS providers will keep your data safe?
Check to see if the company stores your data outside the country. The web is an international arena, and that’s a good thing for business, but housing your data in foreign jurisdictions can make it difficult to control how it will be used. Be wary of SaaS providers who store your data abroad and be sure to familiarize yourself with the rules and regulations in foreign territories.
In addition to keeping your data local, it is important to entrust your information only to companies with the highest security certificates. Look for SSAE, CSAE and ISAE certifications, which guarantee that a company can provide physical security at their data facilities, the most sophisticated data-encryption to protect your information, and adherence to all relevant legal conditions.
MYTH #2: YOU WILL LOSE OWNERSHIP OF YOUR DATA
Critics of SaaS may fear that companies will retain their confidential information even after you no longer use their services. Some claim that these companies will sell your data to third parties, or use your information for their own interests. This is simply not the case.
SaaS providers are in the business of helping you run your business more efficiently. Stealing or selling your data is not in their best interests. SaaS companies live and die on their reputation, so the trust of consumers is a currency far more valuable than short-term gains.
Before signing on with a SaaS provider, be sure sure to review all contracts and agreements before signing, make sure there’s a system in place to export data, and a guarantee that your data remains yours.
MYTH #3: USING SAAS IS ONLY FOR SMALL COMPANIES
Because of the particular advantages for startups, such as low overhead and the reduced cost of servers and technical support, SaaS can often be seen as something only small businesses need.
This attitude is changing: as SaaS becomes increasingly familiar and ubiquitous in the business world, expect larger companies to start outsourcing their IT and HR needs. After all, efficiency and expertise are valuable to companies of all sizes.
MYTH #4: SAAS ISN’T COST-EFFECTIVE
The belief that using SaaS is not cost-effective is the biggest misconception of all. The SaaS provider is responsible for processing your data, so you don’t have to worry about hidden costs, such as those for maintenance, upgrades, or fees from outside specialists. When using a SaaS provider, that company’s fee is your total cost. These companies supply the same services to multiple companies, so they are able to allocate the necessary resources efficiently.
Chances are good that your business has a specialty. It’s that one thing you can do better, faster or cheaper than anyone else, as do SaaS providers. They specialize in a specific service and provide it on a large scale to multiple clients, to do it better, faster and cheaper than any individual department within a company. No matter what the service, it makes sense to leave it to the experts.