Cloud computing has become the norm in the business environment, thus bringing about the rise of SaaS or ‘software as a service’ as a solution that is embraced by the modern-day IT infrastructure. Due to the increasing consumption of such service by the companies in controlling their very operations, the protection of sensitive information has become vital. It is within this framework of understanding that SaaS compliance with SOC 2 is very important for those providers that want to prove how serious they are in protecting customer data.
What is Compliance SOC 2?
SOC 2 refers to Service Organization Control 2 and its practice constituted a standard of auditing procedure evolved by American Institute of Certified Public Accountants, AICPA. It assesses the systems a service organization, SaaS service or not, has in protecting the data of the customers it provides services to. The assessment under the SOC 2 framework is organized around five trust services criteria namely:
- Security: The protection of information and the systems that store, process, and transmit the information against unauthorized access and other forms of exploitation.
- Availability: The capability of the system to be reachable and in working order at the required times.
- Processing Integrity: The attribute assurance that the system processing is performed accurately, completely and as authorized.
- Confidentiality: The protection of sensitive information from being accessed by unauthorized parties.
- Privacy: The protection of personal information as defined by the relevant legislation.
Why is SOC 2 Compliance Important for SaaS Providers?
In this era where businesses opt for cloud solutions, clients want their SaaS providers to go above and beyond concerning security and compliance. This is why SaaS providers look for SOC 2 Certification to help them earn the customers’ trust as it shows the effectiveness of the controls and procedures implemented to safeguard the clients’ sensitive information.
SaaS providers stand to gain many advantages when it comes to SOC 2 compliance such as:
- Increased trustworthiness: Obtaining a SOC 2 certification shows that the vendor is capable of processing customer data without compromising on security, which raises the level of assurance of current and prospective clients.
- Earning more market share: Once SaaS Providers achieve SOC 2 compliance, they are able to position themselves apart from those competitors that disregard such standards.
- Enhanced security: As part of obtaining SOC 2 certification, an audit is conducted which helps to pinpoint weaknesses and other areas for growth thereby facilitating the improvement of the providers’ security systems.
Strategic Approach Regarding SOC 2 Compliance?
SOC 2 Certification is not just a box to be checked; more incisive measures have to be put in place. This is the stage where SaaS providers should realize the need for a complete sustained 365 days compliance strategy which has:
1.Risk assessment: Find out what losses can occur and what risks exist within the company’s systems and processes.
2.Control implementation: Design and carry out controls for relevant risks, keeping in mind the requirements of the contents of SOC 2.
3.Ongoing monitoring: The controls are examined and their effectiveness assessed over time.
4.Auditor selection: Identify a competent practitioner able to perform SOC 2 audits and ensure the entire process is completed in an orderly manner.
5.Communication: Enable interaction with all parties including clients, auditors and staff and provide regular updates during the entire process of compliance.
Best Practices for SaaS Providers
Best Practices on SOC 2 Compliance for SaaS Service Providers
Develop a full plan: Keep control of every plan of activity and decision, every pattern of behavior, wise practice, and its documentation.
Allocate duty: Allocate duties for each employee so that every person must answer for something.
Acquire supporting features: Use IT security features, such as data encryption, access restriction, etc. to assist in achieving compliance.
Encourage adherence to rules: Make the staff members effective and active such that every one understands about SOC 2 and its significance.
Conclusion
In the current business world, which is driven by cloud technologies, it has become almost impossible for every SaaS, data-at-rest and in-transit cloud service provider to breach SOC 2 compliance level. Mentally- coping strategies are not enough in the fight for clients’ data. Therefore, sociological methods of building trust with clients should be incorporated by SaaS providers within a methodical approach towards the all-encompassing goal of compliance. By way of adopting appropriate practices and implementing regular supervision, successful SaaS solutions will be able to protect valuable client information and remain relevant in the fast-growing industry.
Given that the cloud transformation is still evolving at a faster pace, the need for compliance with SOC 2 will also increase. Since most SaaS business strategies today take security and compliance into account, business growth and expansion will be achieved without sacrificing the reassurance of customers.