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SaaS - Software as a Service - Data Security and Privacy

2013-12-24 13:22:01 | 日記
In one of the other articles on SaaS, Business Applications, SaaS and SMB Market @, we proposed that SaaS will be a mass enabler for SMB (small and medium business) market. In order to provide effective SaaS solutions for enabling multi tenant systems, it is imperative that the key issues of data security and privacy are addressed.

It is important to acknowledge and identify that the requirements, sensitivity to data security and privacy; and pricing levels demand different levels of SaaS enabling. There may be an application that can share the same database among different clients as the application itself is not core to the company and data does not demand the highest level of data security. On the other hand, there may be an application that requires data encryption along with separate and dedicated database as the application data demands highest level of data security.

Let's look at different levels of SaaS enablement for business applications. The SaaS solution enables a multi-tenant system that can be used by multiple clients. The solution enables a secure and trusted environment where clients can execute business processes with complete confidence.

The critical aspect of multi-tenancy solution is data security and privacy and application security. In simple terms, it is about data separation and application separation. In this article, we shall focus on data security and privacy.

There are multiple mechanisms, which can be used to ensure data separation so that a client does not get access to another client's data on the same SaaS solution.

1. Database Separation: This solution provides a very high level of data privacy as a separate database is allocated to each customer. This comes at a higher cost due to licensing and operational cost on the SaaS vendor side.

2. Schema/Table Separation: This solution provides a medium level of data privacy as separate tables are assigned to each customer.

3. Data Separation: This solution provides the lowest level of data privacy as same tables are used to store customer data.

4. Data Encryption: Data encryption can be used to provide a very high level of data privacy to customer data. Data encryption can be used with any of the above solutions. Typically data encryption is done using symmetric encryption with algorithms like AES (Advanced Encryption Standard).

One should carefully evaluate application requirements and risk profile to identify the appropriate level of data separation.

In the context of business applications for SMB segment, I bet its going to be the same result. For the SMB segment, shared cost model and low TCO (Total Cost of Ownership) will drive the mass adoption of business applications.

And there comes SaaS (software as a service). SaaS model will be a mass enabler of business applications for SMB the way mobile telecom has been for rural markets. SaaS offers similar benefits, shared infrastructure cost as it's shared among thousands of companies and low TCO as the company does not have to operate the infrastructure.

Look at Microsoft Study on SaaS, it projects SaaS adoption in SMB to grow by 86% in 2009. Here is another interesting read from NASSCOM Product Enclave and Expo 2009.

From the consumer side, SaaS is about software outsourcing where the consumer does not have to invest resources (time, people and space) for the outsourced business functions. Like Microsoft Office suite provided a set of 4-5 office productivity tools, there will be a suite of SaaS applications which will provide business processes productivity tools for SMB.

With this software outsourcing (development, deployment, operational) to SaaS vendor, SMB business can benefit significantly. There is still a key issue of data security, when the data is residing outside the company. The answer will be a pragmatic mix of technology and legal frameworks.
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