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In this modern era, cloud computing has evolved as a new technology for enterprise and personal computing. Many cloud services are available for customers in the market today. Each service has different terminologies, security, cost and goals. Evaluations of these cloud services are becoming more and more significant. Among the different types of cloud services available, SaaS is rapidly becoming a common software delivery model for many business applications, DBMS software, Management software, Virtualization etc. though users deploy Saas for different purposes, they are not aware about which one is suitable for them in terms of security, performance and storage capacity. The data privacy and service availability in cloud computing are major security problems. This paper proposes a system that addresses security challenges in context to SaaS. The development of such system will help users to judge different cloud computing services (SaaS) with respect to security issues, concerns and challenges of security in the cloud. On the other hand, vendors will able to identify the level of their service based on security parameters and basic requirements of SaaS. Customers will also be able to choose an appropriate SaaS provider for them, after evaluating the services based on parameters explored in the paper. [ABSTRACT FROM PUBLISHER]