Onymos, a company known for its innovative solutions in Software-as-a-Service (SaaS) for software and application development, has released a new report highlighting significant security concerns among technology leaders. The SaaS Disruption Report: Security & Data, based on a survey conducted in partnership with Enterprise Strategy Group, reveals that a staggering 78% of technology leaders are worried about security threats linked to SaaS in application and software development.
The survey gathered insights from 300 leaders in application and software development, IT, and security across midmarket and enterprise organizations in the United States. It aimed to better understand the current practices and priorities in application development, especially in the context of SaaS solutions, security, and data privacy.
The findings underscore a critical paradox in the industry: while enterprises prioritize data privacy and security, their heavy reliance on SaaS solutions exposes them to significant risks. This is consistent with Gartner's prediction that by 2025, 45% of organizations worldwide will have experienced attacks on their software supply chains. Alarmingly, the report found that nearly half (45%) of tech leaders reported a cybersecurity incident through a third-party SaaS solution in the past year.
Key Insights from the Report:
Security and Data Privacy Priorities: The survey found that security (72%) and data privacy (65%) are the most important factors in the app development process. Despite these priorities, the use of SaaS solutions continues to pose substantial security risks.
Data Retention Concerns: An overwhelming 91% of tech leaders believe it is crucial to retain data within custom-built, internal applications. This reflects a growing concern about the safety of data when relying on third-party SaaS providers.
Limited On-Premise Application Usage: Only 36% of tech leaders reported running all their applications on-premise or on private clouds, highlighting a significant reliance on external SaaS services.
Shiva Nathan, Founder and CEO of Onymos, emphasized the dual nature of SaaS in the development process. "Today, SaaS is integrated into every aspect of application and software development, serving as a tool to accelerate overall development processes and as an essential component or plug-in for specific solutions or products," Nathan explained. "While it can help drive innovation and efficiency, it also presents risks. For instance, when companies purchase a SaaS solution to expedite the creation of an application, they must provide data access to the third-party SaaS provider in exchange. By granting this access, enterprises face risks such as cyberattacks and accidental data leakage."
Nathan continued, "As we increasingly rely on SaaS to develop our business-critical applications and software, we must reconsider how we approach SaaS data privacy and security. It is no longer acceptable to require companies to hand over their data in exchange for key functionality or faster time-to-market."
Jon Brown, Sr. Analyst at Enterprise Strategy Group, added his perspective on the findings: "Onymos' research highlights the growing security concerns surrounding SaaS applications. By identifying the critical need to retain data within internal applications, they've uncovered a significant gap in the market."
The report's findings point to a critical need for organizations to rethink their approach to SaaS solutions, particularly in terms of data security and privacy. As businesses continue to integrate SaaS into their development processes, the challenge will be to balance the benefits of these tools with the imperative to protect sensitive data and maintain robust security postures.
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