Understanding SaaS Data Protection in a Post-CrowdStrike Outage World: Lessons from the HYCU State of SaaS Survey

The HYCU State of SaaS Resilience 2024 Report reveals critical data protection gaps as 70% of organizations experience data loss. Despite this, 60% still rely on SaaS providers for protection, exposing themselves to further risks. Discover key insights on how to secure your SaaS data and enhance resilience.

Written by
Simon Taylor
Published on
October 14, 2024
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As SaaS adoption continues to skyrocket, global companies used an average of 371 SaaS applications compared to 217 in 2022, businesses are experiencing a rapid increase in both the opportunities and risks associated with their use and the proliferation of applications across cloud and in SaaS. The findings from the recently released, HYCU State of SaaS Resilience in 2024 Report, paints a clear picture of these challenges:  

  • 70% of organizations experienced data loss in SaaS applications over the last year, yet
  • 60% of companies still mistakenly believe that their SaaS providers are responsible for data protection.  

This gap in understanding can lead to devastating consequences—something we saw firsthand with the CrowdStrike outage.

The Shared Responsibility Model is Critical

One of the most startling insights from the recent HYCU survey was that the majority of businesses are unaware of the Shared Responsibility Model in SaaS. The CrowdStrike outage underscored the reality that when outages occur, or when data is compromised, it’s ultimately up to organizations to safeguard their data.

A year ago, we outlined this in the Amazon best-selling book, Averting the SaaS Data Apocalypse. As I noted, cloud service providers only ensure platform uptime, not data integrity. This misconception leaves companies vulnerable to both external threats and operational failures, that can disrupt a business’s ability to function day-to-day. It’s high time for organizations to reassess how they protect their data, whether that data is in the cloud, on-prem, or in a SaaS application.

Complexity is Increasing – and So Are the Risks

From the recent HYCU State of SaaS Resilience Report, 58% of respondents are increasingly concerned with managing the complexity of multiple SaaS platforms. As businesses diversify their SaaS portfolios—using well more than 200 different applications—this complexity introduces more potential failure points. The CrowdStrike outage showed us just how fragile these interconnected systems can be. 

Our customers must start thinking holistically about data protection, adopting platforms and strategies that protect data across all SaaS applications. It’s not just about uptime anymore—it’s about ensuring your mission-critical data remains secure and accessible at all times.

Lack of Preparedness for SaaS Outages

Despite the rising risks, 45% of organizations surveyed still do not have a formal backup or recovery strategy for their SaaS applications. The CrowdStrike incident was a reminder of how unexpected outages can paralyze a business. These disruptions have ripple effects—impacting everything from service delivery to customer satisfaction. 

From the customer examples in the Best-selling book, the importance of preparing for the worst-case scenario, with robust disaster recovery plans and backup systems in place, is critical. Businesses can no longer afford to take a reactive approach; proactive planning is the key to resilience in a cloud-first world.  

“Transitioning to a digital ecosystem presented us with unprecedented challenges, especially in the realm of data visibility and security. When we collaborated with HYCU, we weren’t just embracing a solution; we were welcoming a change catalyst. Their platform didn’t just provide visibility in our data landscape – it helped with the transformation we were already making. From removing blind spots to ensuring prompt recovery, the transformation has been significant. It’s rare to find a technology partner that understands your challenges as keenly as HYCU does, and HYCU has proven to be that invaluable ally for us at Bain Capital. Our data integrity, security, and management are in good hands, and for that, we’re immensely grateful.” Mark Sutton, CISO, Bain Capital

Taking Control of SaaS Data Protection

The HYCU State of SaaS Resilience Report, combined with the CrowdStrike outage, emphasizes that data protection is no longer an option—it’s an imperative. If we’ve learned anything from these events, it’s that the cost of inaction is too high. As a trusted partner to more than 4,200 customers in 78 countries worldwide, we encourage all businesses to take a step back and assess their current SaaS data protection strategies. It starts with these key questions:

  • Do you know how many SaaS applications are in use across your organization?
  • Do you know what applications and platforms are protected and unprotected? Can you visualize this easily?
  • Do you have a solid backup plan, not just for VMs and platforms but also for the SaaS applications and underlying services they use to run?
  • Are you prepared for unexpected outages or breaches? 
  • Do you know how long it would take to recover from an outage?
  • Do you know how long you can last without data or the ability to generate revenue?

At HYCU, we believe in empowering our customers with the tools and knowledge needed to protect their most valuable asset—data. Now is the time to act, and answer these questions before they become significant issues and before the next major SaaS outage or data loss event occurs.

Looking Ahead: Building a Resilient SaaS Future

At HYCU, our primary goal is to help organizations avoid becoming a statistic. As we plan for the future, we are committed to driving innovation and education in the data protection space. Whether through providing an easy way to visualize your entire data estate with R-Graph, developing comprehensive backup strategies, or better understanding your responsibilities within the Shared Responsibility Model, the power to safeguard your data is within your hands.

The conversation doesn’t end here—let’s continue working together to ensure that your SaaS applications are not only operational but resilient in the face of any challenge. No one should be a statistic.

**Simon Taylor**, CEO, HYCU

Additional Resources

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CEO

Simon Taylor is the founder and CEO of HYCU. A serial entrepreneur, prior to HYCU, Simon led Comtrade Software, an infrastructure monitoring business, sold to Citrix. Having raised more than $140M at HYCU, Simon has more than 20 years' experience in go-to-market strategy development, product marketing and channel sales management for high-growth, tech companies. An Instituto de Empresa (Madrid) MBA graduate, he has worked with leading companies such as Comtrade Group, Forrester Research, Putnam Investments and Omgeo.

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