Software-as-a-Service (SaaS) can increase the competence of the small and medium sized enterprises as that of a globally integrated enterprise. However, the SaaS provider has total control over the underlying cloud infrastructure while the customer has little control. As numerous surveys show, security and privacy are the top concerns preventing firms from moving to SaaS. This study applied the Information Systems Continuance Model and adopted privacy and security reliability as a new construct of interest. The study contributed to a more sophisticated understanding of the role of privacy and security reliability for customer satisfaction and continued SaaS usage intentions.