SaaS (Software as a Service) companies provide software applications as a vendor to customers over the Internet. These types of services have brought up the issue of making sure there are strict standards of security adopted due to the high risk of security breaches and the compromise of the customer’s information. However, vendors in this type of business must make sure that these standards are met.

A main concern that must be addressed throughout a SaaS company is information security. The company should insure that they meet a security standard that is recognized. By meeting this standard, customers will have the peace of mind when it comes to security and web service reliability.

When it comes to the security of the company, this is a major concern. The security system is meant to keep out hackers and to protect against software defaults, so that customers can access the information when needed. Most companies will perform audits to show how they deal with these types of threats, and they usually have an Information Security Management System in place.  This is important to a customer, as they want the reassurance that no matter what happens their information will be kept safe.

The two key parameters in any SaaS company are:

  1. Performing a SSAE 16. The SSAE 16 is short for Statement on Standards for Attestation Engagements. It replaces the old SAS 70, and it has its benefits. Its and audit that has to be done once a year; main area of audit are security and pinpointing the control objectives and control procedures, it improves the companies security, operations and efficiency when it comes to data management practices.
  2. SSL, better known as Secure Sockets Layer, is a security credential that ecommerce sites must have. 256 bit SSL is a type of encryption that is the highest available today, whose benefits are important to the website and users as well. Having an SSL credential shows customers that your site is reliable and their information will be kept safe. SSL offers many benefits which include:
  • Private communications secured through the use of data transfer encryption.
  • Servers are authenticated
  • The certificate owner, in this case the service provider, is the only one to perform data decryption.

This insures that data transfer is handled safely. Trust is an important commodity where all parties are concerned, why risk it?