SaaS apps conceal being hacked, so self host

Okta's data breach incident highlights the tension between SaaS vendors' incentives to maintain relationships with customers and their responsibility to ensure security. The company's initial response was criticized for downplaying the severity of the attack, which affected 2.5% of Okta customers. This incident is part of a larger trend where companies are reconsidering self-hosting their software due to misaligned incentives between SaaS vendors and customers. Five key incentives drive SaaS vendors' desire to suppress data breach news: fines, reputation damage, legal issues, professional reputation, and contract cancellation. These incentives can lead to a culture of secrecy around security flaws and breaches. However, self-hosted products offer companies greater control over security and cost, as well as customization options. With the rise of SaaS, companies have come to rely on cloud infrastructure, but this has also led to significant costs. As technology is cyclical, not regressive or progressive, there are signs that companies are shifting back to self-hosting their software, with established companies like 37signals, Dropbox, and Retool making such moves. This trend challenges the notion that SaaS should be the default option for software delivery.

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