Data Ownership: Why It Matters for Your Business

When you use SaaS software, who really owns your data? The answer is more complicated—and concerning—than most business owners realize.

The Illusion of Data Ownership

Yes, the terms of service say you "own" your data. But ownership is meaningless without control. Ask yourself:

• Can you export all your data in a usable format?
• What happens to your data if the vendor goes out of business?
• Can the vendor access your data? Use it to train AI models?
• What if they decide to raise prices 300%?
• How long would it take to migrate to another system?

Real-World Data Disasters

The Price Increase Trap

A manufacturing company used a popular ERP system for 8 years. When the vendor raised prices by 200%, they had two choices: pay or spend 18 months migrating to a new system while running parallel operations. They paid.

The Acquisition Shutdown

A marketing agency used a specialized project management tool. It was acquired and shut down with 90 days notice. Years of project templates, client history, and process documentation—gone.

The API Lockdown

A healthcare practice built integrations using their EMR's API. The vendor changed API terms to charge $5,000/month for the same access that was previously free. Their custom integrations became hostage.

True Data Ownership Means:

• Physical control: Data lives on your infrastructure or infrastructure you control
• Format independence: Data stored in standard formats (SQL, JSON, etc.)
• No permission required: Access your data without paying extraction fees
• Complete portability: Move to any platform at any time
• Regulatory compliance: Meet data residency and privacy requirements

The Custom Software Advantage

With custom software, data ownership is straightforward:

• Database runs on your servers or your cloud account
• You have full admin access to everything
• No vendor can hold your data hostage
• Export everything anytime in any format
• Integrate with anything without permission

Questions to Ask Any Software Vendor

1. Can I export all my data at any time? In what formats?
2. Is there a fee for data export?
3. How long do I have access to my data if I cancel?
4. Where is my data physically stored?
5. Who can access my data and for what purposes?
6. What happens to my data if you're acquired or shut down?