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Image by Paul Jacobson via Flickr

This is the third post in the SaaS Risk Reduction Series. In the previous post, I talked about not keeping all eggs in one basket. There are people who will not consider it as an important aspect of risk reduction. Even though I disagree with the idea, they do have very valid points. However, I don't think anyone will disagree with today's topic related to risk reduction. I am going to talk about the importance of considering open formats when selecting a SaaS vendors.

Open formats are those file formats whose specifications are published openly and are not restricted to a single vendor or a software or a web application. With the open availability of specifications, the data in the open file formats can be accessed from any software/application that supports the file specification. You are not locked in with a single vendor's software or web application. Examples of open formats include plain ascii text, html, odf, pdf, dvi, rtf, ogg, png, etc..

While selecting a SaaS vendor, it is important for us to ensure that the vendor will allow us to export our data in at least one of the various open formats available for the particular kind of data. For example, Google Docs supports supports export of documents into text, html, openoffice, PDF, RTF and Word formats. Zoho Writer goes even further and support Latex and DOCX (purists, please don't pounce on me for including DOCX in the list. Even I have my own reservations about it but that debate is for another forum) formats along with the ones supported by Google.

The option to export data in open formats is very important in the SaaS world. Already, we are putting our data into the third party data centers and, thereby, giving up some control over our data for the sake of other additional conveniences offered by SaaS. On top of it, if the vendor locks in the data without giving an option to export it into one of the open formats, it is just a disaster waiting to happen. We can as well put our company's bank information in an open website. Once we put our data with such a SaaS vendor, we are struck with the vendor forever and we will be at their mercy when it comes to pricing and service reliability. No smart business owner would ever want to put their business at such a risk.

I strongly suggest that the users also make sure that the SaaS vendors allow them to easily export their data in one of the open formats with just a few clicks. It is important that the SaaS users are not bogged down with a complicated export process. Just say no to SaaS vendors who don't offer an option to export the data in open formats.

PS: I am intentionally keeping this series without any technical details. The goal of this series is to help small business owners finetune their SaaS strategy.

Previous articles in the series:

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