As a rule, most data security breaches will originate from inside your organization, not from outside forces. If you accept this premise, SaaS data security starts to look pretty good from a cost/benefit viewpoint. There are several types of SaaS architectures offering different degrees of security safeguards, but you'll have to determine what your current and future data security requirements are in order to align to what's available in the SaaS marketplace. I would say in the vast majority of cases, SaaS CRM data security is suitable for most organizations, as evidenced by the number of Fortune 500 companies bringing-up deploying SaaS CRM applications. I would suggest making data security a key component of your application selection process in order to address potential misperceptions about SaaS security on the part of your internal stakeholders.
This was first published in December 2006