By Prashant Gupta, Co-Founder (Tech and Product), ClickPost
Data security is quickly becoming one of the most talked-about topics in the SaaS industry. Much of this focus comes from the same reasons that catapulted the growth of SaaS platforms.
Due to the off-premises cloud-based data storage and operations, SaaS platforms come with the promise of robust data security. While cloud-based storage does simplify data security, it essentially offloads the responsibility from the client to the vendor.
This necessitates cutting-edge data security practices from the side of SaaS companies. Though client-side data security practices are still important, the major push must come from SaaS applications. As the SaaS platforms store and transfer data, proper handling practices from their side go a long way in ensuring data security.
Why Ensuring Customers’ Data Security is Important for SaaS Startups
Even if we completely ignore government-mandated data security norms, safe data security practices simply make business sense. For example, in domains like logistics and e-commerce, a data breach exposing sensitive details can cause irreparable damage to a business.
This is not limited to B2B operations. B2C platforms also handle critical data. We can take the example of a password manager here. A password manager data breach can expose sensitive personal, financial, and professional data. The impact of this will rarely be limited to the individual alone. The data of their loved ones and even their employers are at risk.
Data Security for SaaS Companies – Unique Emerging Challenges
Many SaaS companies start out small, in garages or basements, before experiencing sudden and steady expansion. At the time of this growth, the company might not have the tech stack required to effectively keep data secure.
At other times, the immediate need to bring the product to the market forces the team to put data security on the back burner.
Most of the successful SaaS platforms operating today faced this challenge in their initial years, as data security was not always a trending topic. In fact, most of the early internet-based startups barely thought about data security while building the product.
Building Data Security into the Product – Importance of Using the Right Tools
Data security can make or break a SaaS product today. The end customers’ confidence in the product hinges on the security offered. A serious data breach can mean the end of a SaaS application.
It is necessary to bake data security right into the product. Data security should not be limited to encryption and safe data handling practices. It should encompass everything from how the data is collected to how the UI is structured for the end user.
We have to remember that, in most cases, it is human error that leads to data breaches.
Using the right tools and training stakeholders about data security can help avoid breaches. The key lies in continuously checking all possible failure points and securing them.
The exact solutions your business will need to adopt may differ based on several factors. However, basic security compliance is standard for everyone.
Data compliance tools like Sophos can help you deploy encryption and access management. Additionally, you need to have established processes for data backup and adherence to data protection regulations.
Best Practices for Ensuring Data Security
● Implement standard data encryption practices
Implementing standard data encryption practices forms the primary defence against data breaches. MacOS and Windows Professional both offer easily accessible data encryption tools. These should be implemented from a very basic level in the organization.
If you use standard tools to check compliance with your organization’s data security policies, the reporting process for lapses can also be automated.
● Train employees to reduce human error
Most data breaches happen due to human errors, and not due to technical issues. This makes it imperative to train your employees and users on how common social engineering attacks happen and how to avoid them.
It is necessary to remember that these attackers are quickly upping their game in terms of sophistication. The frequency of attacks is only going to increase as people and organizations become more aware of the value of data.
● Be clear about regulations in markets you operate in
Before implementing data security practices, it is necessary to look at the regulations of the markets you operate in and plan to expand to.
Most countries have their own data security requirements that you must comply with. The good news is that most countries broadly follow the same guidelines, and minor adjustments will give you access to most markets.
Data Security Compliance Around the Globe
We cannot ignore the elephant in the room when discussing modern data security compliance – General Data Protection Regulation (GDPR).
GDPR is a data security law drafted by the European Union that came into effect in 2018. It is widely regarded as the toughest data security law in the world. If EU citizens access your application, compliance with GDPR is a must.
Other markets like India have largely based their data security regulations on the GDPR, but impose some additional requirements like local cloud servers for data storage.
The US market does not have a standardized data protection law, but the California Consumer Privacy Act of 2018 (CCPA) is generally considered the gold standard.
Interestingly, compliance with GDPR can take you very close to compliance with all these laws, with only minor adjustments being required.
The Chinese market is an entirely different story. Due to the Great Firewall of China and strong censoring laws, achieving regulatory compliance is extremely hard for foreign companies.
Final words
Data security is one of the most talked about topics today. Customers of SaaS applications expect state-of-the-art data security. Keeping the disastrous consequences of a data breach in mind, SaaS companies must have data security as their primary focus.
Data security must be built into the product, and SaaS platforms must use appropriate tools to check compliance and lapses in real-time. Customers are also increasingly relying on data security credentials when choosing a product for their business.
