SaaS provides a lot of benefits like lower up-front costs, speedy deployment, free maintenance and upgrades, and minimal or no customization but easy configuration options. There are few risks to SaaS solutions which should be considered before jumping on the band wagon, four key points should be taken into account for any enterprise that is looking into buying into SaaS applications

 

  • Service-level agreements – proper due diligence and ask hard questions about uptime guarantee, quick turnaround time for an issue and penalty for unexpected downtimes. Many customers will negotiate prices based on these components of SLA.
     
  • Data Security – Many customers feel uncomfortable with their enterprise data moving over the internet and residing on data centers which will also host data for their competitors. Make sure that vendor has a secure premise and also all the tenets of security in place (physical and digital).

  • Customization Capabilities – most SaaS applications would be architected to be configured rather then customized, making sure that the configuration of the application is easy and simple, does not incur extra development and operation cost.

  • Integration – Since in SaaS applications the data is hosted on vendor premise, it can be a challenge to integrate your SaaS data with your other enterprise data. Making sure an web service based API is available if the integration need arises.