Data Privacy, Integration, Rank as Top SaaS Concerns for Large Companies

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    Integration remains a major concern for those hesitant to adopt SaaS, but a recent vendor survey shows a new top barrier: data privacy.

    SnapLogic, which provides a cloud-based integration solution, engaged in a joint survey with TechValidate, a third-party research organization. We’ve seen a lot of vendor surveys on cloud and SaaS recently, but what sets this apart is that it targeted 100 U.S. companies with revenues exceeding $500 million.

    Seventy-two percent of the organizations responding said they already have an active cloud application or data integration project. So, for the majority, SaaS is already in play as a viable option.

    Still, 47 percent cited data privacy concerns as a barrier within their companies. Application and data integration were cited by 43 percent as the top challenge. I’m going to assume multiple responses were allowed, since the results also show 42 percent cited data security/breaches as a barrier.

    “These numbers are notable and underscore that larger U.S. companies want to use cloud not just for SaaS apps – but for big data and analytics,” notes a recent Integration Developer News post.

    As proof, the post adds that data security and privacy concerns rose by 10 percent when respondents were asked about barriers to adopting cloud analytics.

    The survey doesn’t specify how many are using iPaaS (integration Platform as a Service or cloud-based integration solutions). However, it is clear that a number of those queried weren’t too keen on using on-premise integration solutions for cloud integration:

    • 43 percent cited issues with the requirements for the hardware and software costs of on-premise tools.
    • 37 percent said on-premise tools were too expensive due to the perpetual licensing model.
    • 35 percent found change management “painful where end point changes mean integration rework,” the press release reports.

    Darren Cunningham, vice president of marketing at SnapLogic, saw the results as positive for the company. I’m going out on a limb here and guessing that’s because SnapLogic is a cloud-integration pureplay, and the survey’s results seem to suggest that these large companies favor cloud-based integration for SaaS and other cloud-based solutions.

    For integration vendors like SnapLogic, the next conversation may well be convincing clients they can handle the privacy and compliance concerns as well as the integration work.

    SnapLogic, by the way, recently released SnapReduce 2.0, which leverages YARN for integrating Hadoop data. To learn more about that, check out Mike Vizard’s IT Business Edge post, “SnapLogic Spins Hadoop YARN Support.”

    Loraine Lawson
    Loraine Lawson
    Loraine Lawson is a freelance writer specializing in technology and business issues, including integration, health care IT, cloud and Big Data.

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