Blog

SaaS Security: How to Protect Your Cloud Apps and Data

Brette Pedersen

Brette Petersen

8 min read

Share

Key takeaways

  • SaaS security protects applications, data, and access points through authentication, encryption, configuration controls, and continuous monitoring.
  • Security in SaaS follows a shared responsibility model. The provider secures the platform while your organization is responsible for security configuration, identity access, and data.
  • Misconfigurations, unvetted applications, hijacked credentials, and excessive OAuth permissions represent the primary drivers of SaaS incidents.
  • Establishing complete visibility across both sanctioned and unsanctioned SaaS apps is the foundation of effective SaaS security.
  • In addition to broad visibility, closing the shared responsibility gap requires strong identity controls and reliable data recovery

What is SaaS security?

SaaS security encompasses the daily policies, technical controls, and monitoring required to defend cloud-based applications and the sensitive data moving through them. If your business operates on software as a service platforms like Microsoft 365, Google Workspace, or Salesforce, protecting that environment falls squarely on your IT and security leaders.

Building an effective defense demands active management of the identities and configurations running across every tool your organization relies on. It is easy to fall into the trap of assuming a major vendor secures everything automatically. While providers maintain physical systems and platform uptime, leaving user access unmonitored creates immediate exposure to modern cyber threats. Understanding where that vendor boundary ends is essential to building an operational strategy that keeps corporate assets safe.

Definition and meaning

SaaS security is the practice of protecting SaaS applications, their underlying data, and the identities accessing them through strong authentication, encryption, access management, configuration management, and real-time monitoring.

Security in cloud platforms operates as a shared effort between the subscriber and the software provider rather than a provider-only service. Vendors ensure the cloud based infrastructure stays online and resilient against physical threats. Subscribers remain entirely responsible for controlling user permissions, enforcing data protection policies, securing active sessions, and preventing unauthorized external access.

Find the right SaaS Security solution

Talk to one of our experts to ensure your data is protected and recoverable to avoid costly downtime.

Why is SaaS security important?

Rapid cloud adoption has made SaaS applications the primary operating environment for modern enterprises, with Gartner estimating global spending at $299 billion in 2025. As organizations migrate core operational workflows into cloud-based platforms, these tools become business-critical repositories for customer data, proprietary code, and financial records. Consequently, every new application, integration, and user account quietly expands your overall attack surface.

IBM reports that the global average cost of a data breach stands at $4.44 million with incidents originating in cloud environments driving substantial detection and escalation expenses. Regulatory compliance standards also hold companies legally accountable for safeguarding this data, regardless of where it is hosted. Because modern business runs on cloud applications, securing those platforms is a foundational requirement for organizational resilience.

Yet, customer-side operational gaps drive most SaaS security incidents. For example, CSA's 2025 State of SaaS Security Report found that 56% of organizations say their employees upload sensitive data to unauthorized SaaS apps, often without sufficient visibility or enforcement. Attack surface, compliance exposure and cloud adoption speed all point in the same direction: business-critical data now lives outside the traditional network perimeter, and the controls protecting it need to catch up.

The shared responsibility model, explained

Consider a marketing team that connects a third-party analytics app to Google Workspace or Salesforce, granting it broad OAuth permissions to read and modify account data. Months later, attackers compromise that external app and use its existing access rights to quietly pull confidential records directly out of the CRM.

The SaaS provider's underlying physical infrastructure, servers, and baseline application code remained completely secure throughout the entire event. The exposure happened because the subscriber allowed an over-privileged integration to bypass administrative oversight, illustrating that while the provider owns platform security, configuration, identity, and access rest firmly on the customer.

What are the most common SaaS security risks and challenges?

Most SaaS incidents trace back to a few recurring gaps. Understanding each one gives your team a clear starting point for closing them.

6 core SaaS security risks

  • Misconfiguration
    Security settings frequently drift from their target baseline over time, leaving multi-factor authentication disabled or file sharing open to the public. According to findings from the CSA, 65% of organizations struggle to fix these configuration gaps, making misconfigurations the single most common entry point for unauthorized access.
  • Shadow SaaS and shadow IT
    Unsanctioned apps that IT never approved and cannot see create a blind spot that grows every time an employee signs up for a new tool with a work email. According to CSA research, 55% of security teams report employees adopting SaaS applications without IT involvement.
  • Account takeover (ATO)
    Stolen credentials, phished logins, and hijacked active sessions allow attackers to walk through the front door using legitimate user identities. Once inside an authenticated session, malicious actors can move laterally across connected cloud services without raising immediate infrastructure alerts.
  • Over-privileged and dormant accounts
    User permissions tend to accumulate over time, leaving current employees with access rights far beyond what their roles require. When employees leave an organization, these unused "zombie" accounts often remain active, creating high-value, unmonitored entry points for attackers.
  • Risky SaaS-to-SaaS integrations
    Modern cloud platforms thrive on connectivity, but third-party OAuth integrations often grant external applications broad permission to read, store, and modify corporate data. CSA's 2025 research found that 73% of security teams struggle to maintain visibility over these app-to-app connections.
  • Data loss and unrecoverable data
    Accidental file deletions, malicious insider actions, uncoordinated offboarding, and ransomware attacks can permanently destroy critical operational data. While SaaS vendors guarantee physical platform uptime, they do not restore lost customer-side data, leaving organizations entirely responsible for implementing reliable recovery mechanisms to maintain business continuity.

What are the benefits of a strong SaaS security posture?

Maintaining a mature security posture across your cloud footprint mitigates risk and transforms how your security team oversees daily operations. Establishing active controls across all cloud-based tools delivers measurable benefits:

  • Complete visibility across sanctioned and shadow applications
    Full visibility across all sanctioned and unmanaged tools eliminates blind spots and enables IT teams to enforce consistent policies across both corporate-approved platforms and shadow software.
  • Reduced breach exposure
    Enforcing strict configuration baselines, mandatory multi-factor authentication, and least-privilege access drastically shrinks your overall attack surface, shutting down the common pathways attackers use to gain entry.
  • Streamlined regulatory compliance
    Automated control tracking systems produce continuous audit trails and provide verifiable proof of compliance with frameworks like GDPR, HIPAA, SOC 2, and ISO 27001.
  • Greater operational efficiency
    Centralized monitoring and automated remediation tools eliminate manual account audits, allowing security teams to focus on strategic priorities instead of routine maintenance.

How does SaaS security work?

SaaS security operates as an interconnected defense model that protects identity, manages configurations, governs third-party integrations, and ensures rapid data recovery. Rather than relying on a static perimeter, modern cloud defense applies Zero Trust principles directly to user identities, active sessions, and application settings.

Protecting these environments requires continuous oversight, drawing on identity and access management (IAM) platforms to verify users, cloud access security brokers (CASB) to enforce policy boundaries, and specialized SaaS security posture management (SSPM) tools to detect drift across administrative settings.

The core components of SaaS security

  • Identity and access management (IAM) systems centralize user authentication using single sign-on (SSO), multi-factor authentication (MFA), and granular role-based permissions to ensure only verified users access corporate applications.
  • SaaS security posture management (SSPM) tools continuously evaluate administrative settings across connected applications, alerting security teams instantly when configurations drift from established security baselines.
  • Cloud access security brokers (CASB) enforce security policies between cloud consumers and service providers, giving administrators visibility into app usage and applying data loss prevention rules across file transfers.
  • OAuth app governance mechanisms inventory third-party integrations, revoking excessive permissions before unvetted app-to-app connections can quietly access or export sensitive corporate records.
  • Continuous monitoring engines analyze user activity logs in real time, detecting anomalous behavior, flagging compromised credentials, and triggering immediate automated responses to contain active threats.
SaaS security layers

SaaS challenge-to-risk-to-control mapping

The table below maps each common SaaS challenge to its resulting risk and the control that addresses it. OpenText's data-protection and backup capability sits on the data loss row; the remaining rows reflect posture controls that fall outside OpenText's product scope but remain essential to a complete SaaS security program.

SaaS ChallengeResulting RiskRecommended ControlOpenText Capability
MisconfigurationData exposure, breachesSSPM, config baselinesOpenText CloudAlly SaaS Backup
Shadow SaaSUngoverned data, no visibilityDiscovery, CASBOpenText CloudAlly SaaS Backup
Weak access controlAccount takeoverIAM, MFA, least privilegeOpenText Secure Cloud
Risky SaaS-to-SaaS / OAuthThird-party data leakageOAuth review, integration governanceOpenText CloudAlly SaaS Backup
Data loss / deletionUnrecoverable business dataBackup & recoveryOpenText CloudAlly SaaS Backup

SaaS security best practices

Establishing a resilient SaaS security strategy requires going beyond baseline vendor defaults to actively manage access, configurations, and third-party risk. Applying structured best practices across your cloud software estate ensures that critical corporate data remains protected against modern threats.

1. Centralize identity and enforce MFA

Connecting every SaaS application to a central IAM and single sign-on (SSO) provider gives security teams uniform control over corporate access. This centralized setup enables you to enforce mandatory multi-factor authentication (MFA) across all accounts, which directly blocks stolen credentials from granting access to your enterprise networks.

2. Apply least-privilege access and remove dormant accounts

Limiting user permissions ensures employees only access the specific tools and data necessary for their roles. Of course, roles evolve and accounts age out over time, so it's important to conduct routine permission reviews. Establishing automated offboarding workflows immediately revokes access for inactive or departed users, which closes down unmonitored entry points before attackers can find them.

3. Continuously monitor your SaaS configurations

Security settings inside cloud platforms shift constantly as administrators adjust daily workflows. Watching these settings continuously helps catch configuration drifts the moment they occur, such as public file links or turned-off security controls. A dedicated SaaS security posture management (SSPM) solution can handle this continuous oversight rather than trying to manually maintain slow, periodic audits.

4. Discover and govern shadow SaaS and integrations

Unsanctioned applications adopted without approval, also called shadow IT, create security blind spots across the organization. Running regular environment scans uncovers these hidden applications along with any connected third-party plugins. Evaluating third-party OAuth permissions enables you to revoke access for stale or high-risk integrations, which secures the background pathways into corporate data.

5. Assess vendors and map to compliance

Evaluating third-party risk begins during the vendor procurement process long before data enters a new platform. Requesting third-party audit reports like SOC 2 attestations and ISO 27001 certifications verifies that the software provider maintains rigorous physical and digital controls. This vetting process ensures that any app handling regulated data aligns with broader regulatory frameworks such as GDPR and HIPAA.

6. Protect and recover your SaaS data

Securing cloud operations ultimately requires a safety net for the data created inside these platforms every day. Implementing independent, automated backups ensures that your organization retains full ownership of its records. When accidental deletions, insider threats, or ransomware incidents wipe out operational files, an external recovery system restores those assets and keeps business operations moving.

How does OpenText Cybersecurity help protect your SaaS data?

OpenText CloudAlly Backup comprehensively protects your SaaS data with automated AWS S3 backup and unlimited recovery from any point in time.

Here are specific ways it secures your data:

  1. Automatically backing up data across Microsoft 365, Google Workspace, Salesforce, Box, and Dropbox from a single platform.
  2. Protecting business-critical information from accidental deletion, ransomware, malware, insider threats, and service outages.
  3. Creating immutable backups to help ensure data remains recoverable after a cyberattack.
  4. Enabling fast, point-in-time recovery of emails, files, Teams conversations, SharePoint content, and other SaaS data.
  5. Securing backup data with AES 256-bit encryption and strong access controls, including MFA and SSO.
  6. Supporting compliance and governance requirements with long-term retention, audit logs, and secure storage options.
  7. Providing flexible storage choices, including OpenText-managed cloud storage or customer-owned cloud environments.
  8. Simplifying backup management and recovery with a user-friendly interface and self-service restore capabilities.

Ready to secure your SaaS estate?

You can start strengthening your SaaS defenses today with three low-friction steps:

FAQ

Security in SaaS is a shared responsibility between the software provider and the customer subscriber. The SaaS vendor manages the underlying physical infrastructure, application code, data center security, and system availability. The customer remains entirely responsible for managing user identities, granting appropriate access permissions, configuring administrative settings, securing endpoints, and protecting the data stored within the platform.

No, SaaS security is a specialized subset of cloud security. Cloud security is a broad discipline covering infrastructure (IaaS), development platforms (PaaS), and hosted applications (SaaS). SaaS security focuses exclusively on the application layer. It addresses identity governance, administrative configuration settings, third-party app integrations (OAuth permissions), and application-level data protection within fully hosted software platforms.

Building an effective SaaS security framework requires protecting the application layer across five critical operational areas:

  • Identity and access management (IAM) Centralizes user authentication through single sign-on, multi-factor authentication, and role-based permissions to verify user access.
  • Configuration and posture management (SSPM) Tracks administrative settings across connected applications to detect and correct security drift continuously.
  • Third-party integration governance Audits OAuth app connections to revoke excessive permissions before unvetted external services can export internal records.
  • Data security and recovery Combines data loss prevention and encryption with independent backup capabilities to guarantee full operational resilience.
  • Continuous threat monitoring Evaluates user activity logs in real time to catch anomalous behavior and trigger automated incident responses.

The most common SaaS security risk is customer-side misconfiguration. Because cloud platforms offer extensive customization, settings like multi-factor authentication enforcement, public file sharing rules, and administrative access permissions often drift from secure baselines over time. When security settings slip or unvetted integrations bypass administrative oversight, those configuration gaps become the primary entry points attackers use to gain unauthorized access to corporate data.

Before onboarding a new SaaS platform, evaluate vendor risk by asking these key questions:

  • What independent security certifications and audit reports do you maintain? Request current SOC 2 Type II reports, ISO 27001 certifications, and proof of regulatory compliance alignment for frameworks like GDPR or HIPAA.
  • How do you handle data encryption and segregation? Verify how corporate data is encrypted both in transit and at rest, and confirm how customer data stays isolated in multi-tenant environments.
  • What are your incident response and notification protocols? Inquire about their formal timeline for reporting security breaches, their mitigation processes, and how they handle service disruption alerts.
  • Where do your shared responsibility boundaries end? Clarify native data retention policies, backup schedules, and exact customer responsibilities regarding platform configuration and access control.

SSPM refers to automated security tools that continuously monitor and manage the security posture of SaaS applications. SSPM solutions scan connected cloud platforms to detect configuration drift, surface compliance violations, uncover risky third-party OAuth integrations, and flag excessive user privileges. They allow IT and security teams to maintain central visibility and enforce security baselines across their entire SaaS ecosystem.

Share
Brette Pedersen

Brette Petersen

Brette Petersen is a Senior Product Marketing Manager at OpenText Cybersecurity, focused on messaging and positioning for ransomware prevention and detection solutions. She brings more than eight years of product marketing experience, including a tenure at Proofpoint leading email security marketing for a $700M+ SaaS platform. Brette holds an MBA in Marketing Analytics and Management from the University of Utah's David Eccles School of Business and is certified through the Product Marketing Alliance and Pragmatic Institute. She is committed to helping customers cut through complexity with clear, credible product storytelling.