SaaS Security Risks: Top Concerns for Businesses in 2024

As companies increasingly rely on Software-as-a-Service (SaaS), they expose themselves to security risks. Cyberattacks and data leaks can occur when granting data access to third-party providers.

A recent report by Onymos highlights this problem, showing that 78% of technology leaders worry about security threats linked to SaaS. This report surveyed 300 leaders in IT, security, and development from midmarket and enterprise organizations in the U.S., revealing growing concerns about data privacy and security as SaaS adoption rises.

Data Privacy and Security Concerns

The “SaaS Disruption Report: Security & Data” underscores that while enterprises use SaaS to speed up development, they face serious security challenges. Predictions indicate that 45% of organizations will experience software supply chain attacks by 2025. Nearly half of the leaders surveyed encountered a cybersecurity incident involving third-party SaaS solutions in the past year. Key findings indicate that security (72%) and data privacy (65%) are the top concerns in application development. Moreover, 91% of respondents believe it is essential to keep data in custom-built internal applications instead of relying solely on external SaaS providers.

Identified Challenges and Market Gaps

The report reveals a significant gap in how enterprises manage data privacy with SaaS usage. Organizations are at risk of cyberattacks and data leaks by giving third-party providers access to their data. While SaaS offers benefits like faster deployment and improved functionality, only 36% of tech leaders keep all applications on-premises or in private clouds, showing a lack of confidence in external SaaS security.

Onymos’ research indicates a growing need for solutions that help businesses control their data while still using SaaS advantages. A follow-up report later this year will provide more insights into the software development challenges faced by U.S.-based midmarket and enterprise organizations.