We are now into H2 2026 and phew what a scorcher it’s been – not just the weather! This month we are looking at how to optimise your use of SaaS and some potential costs you might not have thought about along with another reminder on the importance of cyber security, especially in relation to AI.
SaaS and backups
SaaS has become a business bedrock, providing essential software to fuel your business and store your data. Most small business owners will look just at the monthly subscription fee, however, if you need to change provider or back up your data elsewhere, costs can spiral, such as data egress fees, reformatting costs and migration expenses. Given the volume of data we all create in our everyday work lives, that could be a substantial expense, not only to get out of the platform, but potentially also in reformatting costs – before you have even started paying for new software. When looking at a new SaaS platform, in addition to subscription fees, consider the following costs before signing on the dotted line:
- Data transformations – export formats are unlikely to be immediately reusable elsewhere so you will need technical resources to convert, clean and verify data integrity
- Retraining – this isn’t just about learning new buttons, it’s also about lost productivity during the transition period
- Loss of leadership time – hours evaluating alternatives, overseeing migration and troubleshooting issues means decision-makers aren’t focusing on revenue-generating or strategic plannin
This doesn’t mean you shouldn’t use a SaaS platform, rather that you go in with your eyes wide open. Ask the right questions such as: What are your data egress fees? In what formats can data be exported? Is there an API for automated backups? Make sure you have regular, automated exports of your critical data to neutral storage you control – incremental cloud storage costs tend to be minimal compared to emergency extraction fees. Finally, make sure that you have included an “exit fund” – typically 10-15% of your annual SaaS spend – to cover potential migration costs. This means that, while enjoying a fruitful partnership with your vendor, you can retain some financial independence allowing you to negotiate from a position of strength and make informed decisions about when to stay and when to switch. Make sure your exit strategy is simply documented (and updated annually): where your data lives, how to extract it, what formats you need and what the estimated costs are. This exercise alone often reveals surprising dependencies or identifies data you’re storing unnecessarily.
Cyber security and AI
This Cyber Security Dive article reports on the concerns of the Five Eyes intelligence-sharing alliance on the growing capabilities of frontier AI models. “The evolving landscape of artificial intelligence (AI) is rapidly transforming cyber risk, and we must act swiftly to remain ahead,” the cybersecurity agencies of Australia, Canada, New Zealand, the United Kingdom and the United States said in a joint statement. “AI is not a future consideration — it is already here.” A rather sobering quote but a timely reminder of the need for consistent, good cyber hygiene.
