The Software-as-a-Service (SaaS) market is rapidly growing and is expected to reach $232 billion by 2024. However, amidst this growth, security often takes a back seat to speed, functionality, and user experience. Many SaaS companies lack a foundational security approach, leading them to neglect to build data security into their products. As a result, security considerations often arise as an afterthought, driven by customer demands for assurance that their data is secure before trusting a company with their information.
The costs associated with data breaches are substantial, averaging around $4.35 million per breach. Moreover, research has shown that 60% of companies raised their product and service prices following a data breach. Cloud-based data breaches accounted for about 45% of incidents in 2022, highlighting that storing data in the cloud does not exempt companies from prioritizing security.
Taking a reactive approach to SaaS application security can lead to significant risks and costs. While software engineers may initially be reluctant to prioritize security in new products due to associated costs and complexity, skipping security leaves organizations vulnerable to risks. A report from the Cloud Security Alliance (CSA) found that 43% of organizations experienced security incidents due to SaaS misconfigurations. Such incidents lead to costly and time-consuming remediation efforts, requiring unique security solutions for each specific system.
Building security into a SaaS application during the development stage is preferable for several reasons. Firstly, it achieves cost savings, as the initial investment in security resources is generally lower than retroactively adding security to a finished application. Secondly, it avoids a cascade of changes that can occur when retrofitting security measures, ultimately saving time and resources. Thirdly, a proactive approach allows companies to identify and address vulnerabilities early on, reducing the likelihood of expensive and damaging breaches.
Incorporating security into SaaS applications from the start also helps avoid the “legacy syndrome,” where organizations struggle to implement security measures because original developers are no longer available. Moreover, building security from the ground up makes maintenance and updates easier, establishing a robust defense against cyber threats and instilling trust in customers.
For both start-ups and established organizations, including application security during product development is the best option. However, if this was not initially prioritized, there are still steps that can be taken to improve security. One recommendation is to keep all data in the cloud, simplifying compliance and offering a more secure solution.
For SaaS start-ups, several steps can be followed to enhance security. These include reviewing compliance and security frameworks, training engineers to understand security risks, and making security an integral part of the organization’s vision from the outset.
Building security into SaaS applications is not just a best practice; it is a business imperative that safeguards reputation, mitigates risk, and protects valuable data assets. Prioritizing security from day one instills trust in customers and stakeholders and contributes to long-term success in the evolving SaaS landscape.