The Risks of Cloud and SaaS Providers

One of the more daunting tasks for small organizations involves the selection of a Cloud or Software as a Service (SaaS) provider when they have determined they want to take advantage of the benefits the Cloud offers.

The Cloud's promises of lower IT costs, faster solution deployment, the latest software versions, scalability, and anywhere access for employees wherever they have broadband Internet sure sound like great solutions to many small business technology woes -- and they can be.

But in a 2022 Microsoft survey of 3,000 SMB owners, difficulty researching, finding information, and making a decision ranked behind only Cost as the biggest obstacles in selecting new technologies.

Further, a 2021 study of IT decision-makers by AppDirect found that 52 percent felt they had made a poor SaaS choice recently.

The challenge often overwhelms SMBs and nonprofits that don't possess the technical expertise to decipher the apples to oranges comparisons they receive from competing vendors. 

Certainly, you want to know if the software or platform will solve your problems and propel your business forward. You also want to know if it matches your existing workflow or if you will receive ROI that justifies adapting your workflow to the software.

But you need to look beyond the software's features, capabilities and compatibility with your organization. 

Migrating to the Cloud means giving the provider control over key parts of your business. Besides your server, your data will be controlled by the Cloud or SaaS provider, too.

When you surrender that much control, you need written assurances to the major risks involved in such an undertaking:

• Financial Risk
• Operational Risk
• Reputational Risk
• Compliance Risk
• Legal Risk
• Disaster Risk
• Cyber Security Risk
  

If you don't receive satisfactory written assurances for those risks, you need to do so before signing up with such a significant, strategic partner.

EDM Info Pro deals with those and a number of other questions when we perform in-depth Vendor Risk Assessments of potential Cloud and SaaS providers for our clients.

We have also posed questions to consider in our e-Book, "Find Your Cloud 9's", which offers a mini-guide to the VRA process. 

To set up a Reference Interview on the questions you have about investing in new technology for your business, contact me at 302-537-4198, ericm@edminfopro.com or on our Contact form.