How to Ensure SaaS Compliance and Choosing The Right One

Enterprise IT teams today routinely onboard dozens of SaaS tools without a clear picture of which ones meet regulatory standards and which ones quietly create liability.

SaaS compliance provides the structured foundation that prevents those costs by ensuring every vendor in your stack meets the security, privacy, and regulatory standards your business is contractually and legally obligated to uphold. 

It encompasses certifications like SOC 2 and ISO 27001, data privacy regulations such as GDPR, and the ongoing operational controls that keep those commitments current.

This article walks through what SaaS compliance requires, which frameworks apply to your organization, and how to build a compliance program that holds up under audit.

What is SaaS compliance? 

SaaS compliance is the ongoing practice of ensuring that SaaS providers and the organizations using them meet recognized security frameworks, data privacy regulations, and industry standards. 

These standards govern how customer data is collected, stored, processed, and protected across the full lifecycle of a SaaS product.

These compliance obligation of software as a services operates on two levels:

• For SaaS vendors: building and maintaining a platform that meets recognized certifications, security controls, and data governance standards.
• For enterprise customers: governing which SaaS tools are in use, verifying that each vendor meets required standards, and maintaining controls that satisfy internal audit requirements and external regulatory obligations.

The two levels of compliance are closely connected. A SaaS vendor that fails a SOC 2 audit or violates GDPR requirements exposes every organization on its platform to compliance risk, even if those organizations had no visibility into the underlying security failure.

SaaS compliance vs. general IT compliance

SaaS compliance is a subset of IT compliance, but the two differ in scope and risk profile:

• General IT compliance covers the full technology estate: on-premises infrastructure, hardware, internal networks, and endpoint management.
• SaaS compliance specifically addresses the risks introduced by cloud-based software subscriptions. This includes vendor security certifications, data processing agreements, shadow IT exposure, and multi-tenant data handling.

The distinction matters in practice because most enterprise software is now delivered as SaaS. 

An organization can have a well-maintained on-premises compliance program and still face significant regulatory exposure from an unvetted SaaS application onboarded by a single department without IT review.

The importance of SaaS compliance for your business

Compliance protects the business on three fronts: financial, operational, and reputational.

Financial penalties for non-compliance

The cost of non-compliance is no longer abstract. Regulatory bodies across major markets have published and enforced specific penalty structures:

• GDPR: Fines of up to 4% of global annual revenue or €20 million, whichever is greater. Applicable to any organization that processes the personal data of EU residents, regardless of where the organization is based.
• HIPAA: Civil penalties of up to $1.9 million per violation category per year in the United States. Applicable to any SaaS company handling protected health information.
• PCI DSS: Card network fines between $5,000 and $100,000 per month until the issue is remediated. Applicable to any SaaS product that stores, processes, or transmits cardholder data.
• Indonesia PDP Law: Administrative sanctions including fines and mandatory data breach notification. Applicable to all data controllers and processors operating in Indonesia from 2024 onward.

IBM’s 2024 data also shows that organizations with poor regulatory compliance face breach costs averaging roughly $4.62 million per incident, higher than the global baseline for fully compliant organizations.

Operational and reputational impact

Beyond direct financial penalties, non-compliance triggers consequences that compound over time:

• Lost enterprise contracts: Failed audits or lapsed certifications can disqualify a vendor before the product is even evaluated.
• Eroded client trust: Data breaches damage reputation in ways that take years to rebuild.
• Blocked market access: In regulated industries, a missing SOC 2 report or expired ISO 27001 certification is often an automatic disqualifier.

Compliance also works in the other direction as a sales asset:

• A current SOC 2 Type II report shortens vendor due-diligence processes significantly.
• An active ISO 27001 certification signals operational maturity to enterprise procurement teams.
• A documented incident response plan demonstrates readiness that most competitors cannot show.

Read More: Why SaaS Security Matters and The Strategies to Implement It

SaaS compliance standar framework

SaaS security is protected by established international standards and frameworks that act as comprehensive safety protocols against cyber threats. These standards provide crucial protection for business operations and sensitive data. 

1. SOC 2 

Represents the highest security standards in the United States for cloud services. This certification demonstrates proven capability in maintaining data confidentiality and security through strict access controls and continuous security monitoring. 

SOC 2 is particularly significant for businesses handling sensitive customer data or operating in regulated industries, as it verifies robust security practices and data protection measures.

2. ISO 27001

The international benchmark for information security, recognized and respected worldwide. This certification validates a systematic, well-planned approach to managing information security in cloud services. 

It holds particular importance for international operations, as it establishes a globally recognized framework for data protection and security management that transcends geographical boundaries.

3. CIS & NIST Frameworks

Deliver practical, current-day protection against modern security threats. These standards ensure cloud providers maintain strong defenses against existing cyber risks while preparing for emerging threats. 

By establishing clear, actionable security measures, these frameworks help protect business data and systems from both current and evolving cyber security challenges.

Ensuring SaaS compliance: a checklist

Ensuring SaaS compliance involves seven critical steps that help organizations maintain security standards and meet regulatory requirements:

1. Establish critical compliance frameworks

Start by determining which regulations and standards apply to the business. For example, organizations need to identify relevant frameworks like SOC 2 or ISO 27001, as well as data protection laws such as Personal Data Protection Law (PDP Law) in Indonesia.

This foundation helps build appropriate compliance measures based on industry needs and geographical operations.

2. Addressing compliance risks

Analyze potential security vulnerabilities and risks in the current system. This thorough examination covers cybersecurity threats, potential data leaks, and compliance gaps. 

The findings help organizations develop targeted solutions for strengthening their security posture and meeting compliance standards.

3. Assessing organizational compliance maturity

Examine existing systems, policies, and procedures against compliance requirements. This internal review reveals where current practices meet standards and where improvements are needed. 

Organizations can then focus resources on areas requiring attention to achieve full compliance.

4. Develop implementation plan

Create a detailed roadmap that outlines how to achieve and maintain compliance. This plan should include specific goals, timelines, and resource allocation. 

It serves as a guide for implementing necessary changes while ensuring business operations continue smoothly during the transition.

5. Execute compliance measures

Put the compliance plan into action by implementing required security controls and procedures. This includes setting up technical safeguards, updating policies, and establishing monitoring systems. 

Regular testing ensures these measures effectively protect data and meet compliance requirements.

6. Conduct internal assessment

Before external verification, perform a comprehensive internal review to ensure all compliance measures are working effectively. This self-assessment helps identify and address any remaining gaps, ensuring readiness for formal audits.

7. Undergo third-party compliance audits

The final step involves verification by authorized external auditors. These independent assessments validate that all compliance measures meet required standards. 

Successful completion demonstrates commitment to data security and regulatory compliance, building trust with stakeholders.

Choose a compliant SaaS provider

In summary, SaaS compliance is a crucial component for businesses aiming to protect sensitive data, meet regulatory requirements, and build lasting trust with clients. 

Given the importance of safeguarding customer information and staying ahead of evolving regulations, choosing a SaaS provider with proven compliance standards is essential. 

By partnering with a compliant provider, businesses can confidently focus on growth, knowing they have the right protections in place to meet client expectations and regulatory demands. 

Mekari is a unified software ecosystem that offers operational automation, seamless integration, and intelligent reporting for businesses in Indonesia through an integrated SaaS platform. 

Built on a shared infrastructure, Mekari ensures that security & compliance obligations are met consistently across every product in the suite.

Mekari’s compliance commitment is demonstrated through:

• ISO/IEC 27001:2022 Certification
• PSE Kominfo Registration
• DJP (Tax Authority) Registration

These certifications give businesses in or wanting to expand to Indonesia a vendor they can cite with confidence during security reviews and enterprise procurement assessments.

Partner with the Mekari unified software ecosystem and ensure your business stays protected, compliant, and ready for growth! Contact us today.