Gartner: SaaS contract language regarding security is lacking

SaaS vendors are being "extremely vague" about security and service levels, and customers aren't happy, Gartner says

By , IDG News Service |  Software

Gartner's recommendations reflect a discussion that's been ongoing in the software industry for some time as SaaS becomes mainstream.

Spending on SaaS totaled more than US$14.5 billion in 2012 and is expected to top $22 billion by 2015, according to figures Gartner released last year.

Those numbers are being driven not only by growth in pure-play SaaS vendors such as Salesforce.com, but also due to the ongoing shift by traditionally on-premises software vendors like SAP and Oracle to SaaS delivery models.

The nature of SaaS buying is also changing. Procurement is increasingly occurring at the departmental level, such as in marketing or human resources, rather than as part of a centrally planned IT strategy, a trend that could exacerbate the contract risks cited by Gartner.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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