1. Would you trust an external provider with your organization’s data? Why or why not? What would be needed to raise your trust in the reliability, security, and privacy of the data?
In order to trust an external provider with my organizations data several factors would have to be considered before making this decision. The confidentiality of the data would be one factor which would discourage me from giving it in the hands of a third-party. However, the external providers past history of record keeping and maintaining privacy would also determine if this decision should be taken or not. The data provider should be reputable in the industry, and must not have any allegations against their firm for breach of confidentiality. I would also prefer the firm to give me control over the extent of security that I require for my organizations information. Along with this, I would be more likely to give the information if the data provider creates a trustful relationship with my organization by giving continuous feedback about the security of the provided information. The data provider must have a contract with my organization which should clearly state that the data would not be accessible by anyone else unless the relevant authorities of my organization grant the permission.
2. What are the potential drawbacks of using a relatively simple in-house database with limited capabilities versus a more robust, SaaS database solution? Do the benefits outweigh these limitations? Why or why not?
An in-house database has several drawbacks compared to a SaaS database. The higher costs associated with an in-house database coupled with the chances of total data loss suggest that the SaaS database could be a better option for an organization. The in-house database is inflexible in adopting itself to changing trends. Along with this, the resource expenditure on an in-house database is far greater than that spent on a SaaS database. Unlike the in-house database the SaaS system is regularly updated which ensures optimal performance. The SaaS system also requires the company to pay alongside usage and does not require a high initial investment which is a prominent feature of the in-house database. However, the in-house database is developed by the company itself; therefore, serving its specific purpose. The information is kept within an organization when an in-house database is operational which reduces the company’s reliance on outside providers. Therefore, the limitations of an in-house database are not greater than the benefits it would provide. (Valacich & Schneider, 2013)
3. Are there any types of applications that should only be purchased rather than obtained through a SaaS relationship? If so why or why not?
If a company has a SaaS application on hand it allows the instant access to a database or cloud which suggests that purchasing SaaS applications is vital to develop a long-term and consistent use of an application. Therefore, it is essential for the organization to purchase an application rather than relying on SaaS continuously, it also helps the firm to save costs. Cost savings are in the form of operational costs and handling costs.
Valacich, Joseph , and Christoph Schneider. Information Systems Today: Managing in the Digital World.. New York: Pearson Education, 2013. Print.