Data privacy is one of the hottest debate topics globally, especially with an increase in the online population. The governments from different countries have realized the seriousness of this subject and started taking actions to prevent any information breach. The European Union’s General Data Protection Regulation (GDPR) has become an icebreaker among various data protection regulations. It has denied any compromise with personal data in the EU by setting high standards for data security.
SaaS (software as a service) companies normally offer a subscription-based model and can have clients from any part of the world. Thus, they tend to have a high number of users, and most of the services revolve around user data. But with the adoption of GDPR in the EU, SaaS companies are at high pressure to secure data of their hundreds of thousands of users. The most important thing that SaaS companies need to understand with GDPR is that their customers also need to follow the guidelines.
Since its launch a few years ago, GDPR has taken all over the world. It doesn’t matter where your business is situated. If you are offering your services to EU residents, you need to be GDPR compliant. Failing to comply with GDPR will lead to hefty fines that may amount to up to €20 million or 4% of the revenue, whichever is greater. Recently, Twitter has lost a case to pay the first cross-border fine of €450,000 and everyday companies are investigated and fined.
SaaS companies need to be GDPR compliant along with their customers. Why must clients of a SaaS application also abide by the GDPR? Simply because Oftentimes, in a B2B model, the SaaS is a data processor and the company using the software is the data controller. It means that both the Company that is using the software and the SaaS company itself must abide by data protection laws worldwide.
The GDPR guidelines are generally very straightforward. However, some parts may create uncertainties while implementing these guidelines. Some of the measures for SaaS companies to be compliant with GDPR include:
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.