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Security May Dog Software as a Service
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02/05/2006, By Dennis Fisher and Paul F. Roberts
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Those two behemoths join the services-based software distribution model pioneered by companies such as Salesforce.com, PeopleSoft (now part of Oracle), Hyperion Solutions and Digital Insight. Lately, the idea has been championed in the consumer space by tech darling Google in programs such as Google Base.
"This is a great business model with some significant benefits, but there are some critical security questions you have to ask your service provider before putting your data on someone else's server," said John Pescatore, an analyst at Gartner, in Stamford, Conn. "Security has to be a key criterion in your decision to outsource IT and business functions. If you neglect security, you're taking the risk of regulatory exposure and loss of business."
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