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Integration issues and balkanization threat in case of multiple "in the cloud" vendors. The lock-in concerns as well as potential rip-off due to complicated pricing models.
While individual "in the cloud" service provider can do a decent job in providing the required functionality, the problem arise when you need to use several such providers and issues of interoperability arise.
The lack of interoperability between different SaaS applications is one of the most well known and, at the same time, largest problems with SaaS. In a way companies who are using several different providers spending way too much money with the side effect of creating a problematic, cumbersome IT architecture that lack flexibility and efficiency and as such is inferior to the integrated datacenter architecture. The focus of vendors is on the adaptation of the SaaS model to enterprise requirements (enterprise-level integration), but there is a growing need for vendor-to-vendor integration. How and when those needs will be addressed remains to be seen.
In a way SaaS application emphasize too much GUI portion of functionality of application at the expense of the ability of smoothly exchange data with other, often similar applications.
The emergence of a several classes of enterprise SaaS (for email, CRM, supply chain management, benefits and other HR-related applications, etc ) creates problems of similar or identical data existing in various formats in different providers and their synchronization and timely updates. It providers does not share common "hardware cloud" we have a huge problems as not only protocols of data exchange, but reliability and security issues are pretty complex.
Also the existing interoperability can be broken anytime by software updates by one of several for existing "in the cloud" providers.
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