Matt previously made some good points on his personal blog, now I stumble upon Dare Obasanjo who makes some fundamental development and economic points about SaaS. It’s well worth reading the whole post. Take the risks he highlights, couple that with IAM and unless you are dealing with a well established company with access to capital who loves spending money looking for security bugs, you have a risk that will override the costs savings (if they even exist at this stage) for identity management. I could be completely wrong, however, security risks rarely seem to stop anyone from moving ahead with “saving money.”
Hat tip to James Robertson at Smalltalk Tidbits, Industry Rants Blog.