Top 5 Factors To Consider While Selecting A SaaS Vendor

Clock icon
min read time
March 27, 2023
Share via:

As businesses migrate to cloud-based solutions, the use of Software as a Service (SaaS) apps and demand have skyrocketed. SaaS has been a popular choice for firms trying to streamline their operations and increase productivity due to its numerous benefits.

But businesses are increasingly concerned about the possible security risks connected with SaaS adoption. As a result, selecting a SaaS vendor with adequate security measures has become critical for organizational growth. But with so many SaaS vendors on the market, choosing the best one for your company can be difficult.

This post will walk you through the checklist for choosing a SaaS vendor and avoiding possible security concerns.

SaaS vendors: What do they do?

SaaS (Software as a Service) vendors offer software solutions hosted in the cloud and distributed online. SaaS vendors provide diverse software solutions to meet various business needs.

In addition to providing cost-effective and scalable software, SaaS vendors provide customization possibilities, allowing businesses to modify the software to their needs.

They offer assistance and training to users to help them get started with the software and guarantee a smooth transfer to the new system. SaaS vendors also provide customer support and troubleshooting services to fix emerging issues.

SaaS vendors handle infrastructure and software maintenance, allowing businesses to focus on their core activities and achieve their goals more effectively.

They also provide frequent software updates and upgrades, ensuring that firms always have access to the most recent features and advancements.

Salesforce, Microsoft, Atlassian, etc. are some of the popular SaaS vendors that create SaaS apps to help businesses perform various business functions.

How to choose a SaaS provider | Factors to consider

Choosing the correct SaaS provider is a key decision for every business. A dependable SaaS provider may raise productivity, cut costs, and increase growth, whereas a poor pick can lead to system downtime, data breaches, and costly penalties.

Here are some factors that help you know how to choose a saas provider;

Reliability and Reviews

Reliability is an essential factor to consider when choosing a SaaS service. Check the SaaS provider's uptime history or study online reviews to learn about the provider's dependability. Search for a company with an established track record of providing dependable services with minimal downtime.

Compliance and Security Practices

As SaaS providers handle sensitive data, it is critical to select a provider who complies with relevant standards such as GDPR, HIPAA, and SOC 2. Check the provider's compliance certifications and request information on their security practices, such as data encryption, access controls, and backups.

Service level agreements (SLAs) and support

SLAs describe the degree of service you may anticipate from the SaaS provider and are crucial in ensuring you receive enough assistance when needed.

Examine the provider's SLA to confirm that it satisfies your company's requirements. Look for a company that provides 24/7 customer care and has a solid support structure to manage any issues that may arise.

SLAs are often overlooked during SaaS vendor negotiations, leading to liability issues and downtimes. Clearly understand that the vendor provides SLAs before selecting one.

Transparent pricing based on services offered

As pricing models vary considerably among SaaS providers, selecting a cloud service provider that offers transparent pricing depending on the services you need is critical.

Look for a service that comprehensively analyzes the costs involved and provides flexible pricing options such as pay-as-you-go, monthly, or yearly subscriptions.

Choosing the right SaaS vendor can make the difference between increased SaaS savings or overspending on SaaS. A wrong software provider will end up costing you more than your budget, impacting the ROI down the line.

Integrations and support

To avoid compatibility concerns, SaaS providers must connect seamlessly with other software programs used by your company. Check to see if the SaaS provider works with your apps or software. Moreover, seek a provider that offers enough integration assistance and has an active community of developers.

Finally, choosing the correct SaaS provider is essential to your company's success. When selecting a software vendor, consider aspects like dependability, compliance and security policies, service level agreements, transparent pricing, connectors, and support.

A thorough review of the provider's offerings and a clear picture of your company's needs will assist you in choosing a vendor that suits the needs of your business.

An image showing set of questions to ask to SaaS vendors

What are the key responsibilities of SaaS vendors?

A SaaS vendor's responsibilities vary based on the specific services they provide. Still, some typical responsibilities include the following:

Software development and maintenance: SaaS vendors are responsible for software development and maintenance, which includes regular updates, bug fixes, and feature enhancements.

Offering dependable and secure hosting: SaaS vendors must provide reliable and secure hosting for their software, including data backup and accessibility in an outage or disaster.

Data privacy and security: Software vendors must ensure the security of their products and hosting environment, including implementing suitable data encryption, access controls, and security measures.

Customer support: SaaS vendors must provide active customer support to their users, including quick responses to inquiries and issues.

Handling user accounts and data: SaaS vendors must manage user accounts and data, ensuring that data is appropriately stored, organized, and backed up.

Service level agreements (SLAs): SaaS vendors should provide SLAs outlining their commitment to uptime, performance, and customer assistance.

Ensure industry compliance: SaaS companies must ensure that their software and hosting environment conform to industry laws such as GDPR, HIPAA, or PCI-DSS.

Saas Vendor Management Platform To Simplify Vendor Research

CloudEagle is a SaaS management platform that provides a range of features to help businesses streamline software purchases and renewals so they can focus on growing their businesses.

Its vendor management functionality helps businesses analyze SaaS vendors and choose the right software provider.

An image of CloudEagle's dashboard to select a SaaS vendor

CloudEagle's vendor research function enables users to locate and assess SaaS vendors based on a variety of criteria, such as industry, functionality, pricing, and customer reviews.

Users may easily compare vendors alongside one another using this feature, allowing them to make informed decisions about which ones to pursue.

An image of CloudEagle's vendor research dashboard

CloudEagle emphasizes providing users with actionable insights and suggestions, distinguishing it from other vendor research platforms.

The platform can deliver personalized recommendations that fit a user's specific needs by evaluating their search history and preferences.

Besides this, CloudEagle's vendor research tool acts as a centralized platform for all vendor-related data.

Businesses use CloudEagle to quickly locate and assess vendors that fit their unique needs instead of spending hours scanning the internet for potential vendors and manually assembling information. This can save time and resources, allowing firms to focus on more critical tasks.

Check out this exciting customer story from Edge and how CloudEagle helped them find the right vendors.


Running a business in this digital era would be impossible without SaaS vendors; they bridge the gap between expectations and reality. Software vendors empower enterprises to realize their goals by providing the right tools based on their requirements.

However, with the immense competition in the market, choosing the right SaaS vendor is like finding a needle in a haystack. To simplify vendor selection, we listed the top factors you must consider; these factors will help you choose the right software provider.

To make the vendor selection process quick, you’ll need a SaaS vendor management system like CloudEagle.

Leverage CloudEagle’s vendor recommendation engine to research vendors; the platform lets you communicate with the vendors and their customers; you can read reviews and make an informed decision using CloudEagle.

So, what is your requirement? We can help you choose the right vendor in a few hours.


Check out these SaaS vendor management best practices to follow in 2023.

Frequently Asked Questions

1. How important is customer support when selecting SaaS vendors?

While selecting vendors, take into account their customer support offerings. Seek vendors who offer a variety of support methods, such as email, phone, and live chat.

In addition, evaluate the vendor's service level agreements (SLAs) to ensure they satisfy your response time and uptime commitments. Finally, consider the vendor's reputation for customer service, particularly their track record of resolving issues and offering prompt assistance.

2.How can I evaluate a SaaS vendor's pricing model and value for money?

Assessing a SaaS vendor's pricing plan and value for money is integral to the vendor selection process. While comparing prices, keep in mind the overall ownership cost, which includes not only the subscription fees but also any installation or onboarding charges, as well as any additional fees such as customization or integration fees.

The pricing model of the vendor is a critical issue to examine. Look for providers who offer transparent pricing, such as pay-as-you-go or annual contracts, and flexible pricing methods, such as pay-as-you-go or yearly contracts.

Pay-as-you-go methods may be advantageous for organizations with variable demands, although annual contracts may give businesses with more predictable needs cost savings.

Another aspect to consider is the vendor's value for money. This covers the monthly price and the level of service and features provided.

Written by
Joel Platini
Content Writer and Marketer, CloudEagle
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec pellentesque scelerisque arcu sit amet hendrerit. Sed maximus, augue accumsan hendrerit euismod.

Discover how much you can save on SaaS

Calculate SaaS savings and start optimizing today!