Last week, Shade, a prominent cloud computing company, confirmed a major data breach that compromised the personal information of its clients. The hacker claimed to have accessed data from over 530,000 clients. This incident reflects a growing trend of data breaches affecting companies of all sizes, highlighting the need for enhanced security measures in the digital landscape.

In the face of increasingly strict regulations and the potential loss of customer trust, many tech CEOs are eager to prevent such breaches from occurring. One innovative startup that caught my attention is Zygon, a French company that specializes in reviewing Software-as-a-Service (SaaS) applications. Unlike other services, Zygon goes beyond official SaaS applications and also identifies shadow SaaS services that employees may be using without notifying the IT department.

Initially, I was intrigued by Zygon’s potential as a cost-saving tool. Startups, in particular, have been actively reviewing their SaaS contracts to optimize expenses and increase their financial runway. However, Zygon aims to offer more than just cost-cutting solutions. The company recently raised $3 million in a seed round, indicating its dedication to becoming a leading player in the security sector for SaaS services.

Upon engaging with Zygon’s services, customers gain access to a comprehensive dashboard that displays all their SaaS applications alongside the number of users per application. Zygon achieves this by utilizing employee email metadata and analyzing email history to identify relevant SaaS usage patterns. This level of visibility is particularly valuable since many users are drawn to SaaS startups that offer freemium plans, self-service usage, and virality features which make it easy to create an account and start using the service in minutes.

As the adoption of SaaS continues to expand, companies face three major challenges: security risks, legal implications, and escalating costs. Zygon tackles these challenges by decentralizing security throughout the organization. The startup encourages the appointment of SaaS administrators who are responsible for monitoring and managing the usage of specific tools within the organization. These administrators receive recommendations for security configurations, multi-factor authentication, and other essential security tasks.

While some SaaS applications integrate with official identity management solutions like Okta, Zygon’s services prove most valuable for those applications that function outside these centralized systems. For popular applications, the IT department can take on the role of administrator and prioritize implementing single sign-on (SSO) authentication to enhance overall account management.

Zygon not only provides control over SaaS usage but also offers additional risk mitigation features. The platform can flag instances where individuals maintain multiple accounts for the same service or when multiple employees share a single account. By doing so, Zygon helps organizations maintain a secure and compliant environment.

For companies seeking to comply with SOC 2 and ISO frameworks, Zygon acts as an invaluable resource. The platform minimizes the attack surface by identifying and addressing potential vulnerabilities, ensuring that organizations meet the necessary security standards.

Moreover, Zygon’s services prove particularly useful during employee transitions, such as when an employee quits or there is a wave of layoffs. The platform aids in the identification and deactivation of active services that are no longer necessary or applicable after an employee leaves the organization. This feature helps prevent security breaches resulting from dormant user accounts.

Kevin Smouts, the co-founder and chief product officer of Zygon, emphasizes the criticality of managing SaaS services in light of current trends. He explains, “In the current situation, IT departments have limited control over a small number of SaaS applications. Many accounts remain active long after employees leave, creating significant security vulnerabilities. We go further by detecting which SaaS applications have APIs or access keys that also need to be ‘rotated’ in case an employee leaves.”

Zygon’s comprehensive approach to SaaS management facilitates stronger security practices across organizations. By delegating responsibility to specific SaaS administrators, businesses can ensure that each tool is utilized safely and effectively. The platform offers important recommendations and security configurations to support the administrators in their roles.

With the growing threats posed by data breaches, investing in services like Zygon is crucial for preserving customer trust and complying with regulatory obligations. In the event of a breach, organizations must notify privacy regulators and may face penalties or legal consequences. By proactively managing SaaS applications and addressing shadow IT practices, companies can reduce the likelihood of data breaches.

Furthermore, Zygon’s services align with the broader goal of optimizing expenses and maximizing financial resources. Startups and established companies alike can benefit from Zygon’s insights and recommendations, reassessing their SaaS contracts and cutting unnecessary expenses.

Data security concerns have become increasingly prevalent in today’s digital landscape. The rise in data breaches, exemplified by Shade’s recent breach, highlights the urgent need for robust security measures. Companies must take proactive steps to protect sensitive information and prevent unauthorized access.

Zygon’s unique approach to SaaS management offers crucial solutions to some of the most pressing challenges faced by businesses today. By providing visibility and control over SaaS usage, Zygon empowers organizations to address security risks, adhere to compliance frameworks, and optimize costs.

Addressing shadow IT, where employees utilize applications without IT department knowledge, is a vital step in enhancing data security. Such practices can lead to unmonitored access, unauthorized data transfers, and increased vulnerabilities. Zygon’s ability to identify shadow SaaS services provides organizations with the opportunity to rectify such practices and protect sensitive information.

Additionally, Zygon’s emphasis on delegating responsibility to SaaS administrators enables a more comprehensive and distributed security approach. By involving various stakeholders and promoting proactive security measures, businesses can enhance their overall data protection posture.

Moreover, Zygon’s services offer benefits beyond security and compliance. By guiding companies in optimizing their SaaS contracts, organizations can identify redundant subscriptions and reduce unnecessary expenses. This strategic cost-saving approach aligns with the increasingly prevalent focus on efficiency and financial sustainability.