7 Critical Challenges Caused by SaaS

Alright! I get it. SaaS already created a buzz in the tech industry by saving a ton of money spent by organizations in installing or running apps. They never have to worry about licensing, support, or maintenance. Although SaaS offers a new and easy way to run a business, it still holds some potential myths and risks linked with services. At the end of the day, organizations need to make decisions by weighing the pros and cons of SaaS as it relates to their objectives.

Let's dig deeper and have a glance at the challenges too.

1. No control over critical data

Although it is a sigh of relief for organizations as SaaS helps to manage, configure, upgrade, or maintain software, there is a downside too. Service providers have complete control over the critical data of your organization. If something goes wrong or data goes missing, all an organization can do is wait for the response of service providers. Moreover, if the reputation of a service provider looks fishy, organizations had to suffer from either a security breach or termination of services.

2. Software integration glitches

External SaaS service providers can be a bummer if there exist integration issues with the in-house software. There are high chances of data structures and in-house API not integrating with external software. It is better to run some compatibility checks with every SaaS application before signing a deal with service providers.

3. No room to change your service provider

The majority of the tech market is filled with start-ups who lack the expertise to thrive in a competitive environment. Let's say if a business decides to change a service provider, then it becomes messy to transfer critical data from older service providers to a new one. Having a backup plan is a good option for businesses.

4. Risk of violating regulation compliance

The data center of the service provider may have complete control over critical data of a business. Thus, it becomes difficult to comply with data protection regulations set by the government. If things go wrong, organizations will be held responsible. Thus proactive steps can be taken by organizations.

5. Strict terms and conditions

The terms and conditions of every provider tell about their services in detail. Most of the businesses end up skipping this grey area and it can backfire in near future. Although the document is long in a standard format, it is better to read every tiny detail before making any decision or hiring a service provider.

6. SLA to combat the risk of failure

Access to any critical data or software is restricted in case of internet disconnection and SaaS models work primarily on good internet speed. Downtime at urgent times can be frustrating to any business. Service Level Agreement (SLA) can be helpful to track the performance history of a service provider and make the best decision.

7. Performance issues

Externally hosted applications working through internet connection are vulnerable to performance issues. Although system administrator tools are helpful to boost performance, businesses need to rely heavily on reliable internet connection when compared to software running on a desktop. If internet speed is fine, some tasks are more suitable for SaaS than other software running on a desktop.

It is easy to get carried away with the pros of SaaS for your business. However, scrutinize every aspect of cons too so as to save unexpected trouble in near future and ensure consistent growth of your business.

Signing off, hoomans!