Software as a Service

SAAS Agreement

Organisations have and continue to move away from the former on-premise model of software –where computer hardware was maintained at the end user’s location– and instead utilise a remote online delivery model. This delivery model allows organisations to access the software remotely on a single platform which reduces their need for I.T. infrastructure. It frees up data storage and often saves money on support costs. SaaS agreements additionally give customers the chance to access the software they may need, but not be able to afford upfront.

However, with this model come new business trading terms called SaaS agreements or Software as a service agreement. These agreements lay out the terms of the sale between a software supplier and buyer. As buyers of the model, it’s important to know and understand the business trading terms to get the most beneficial contract possible. As Software as a service supplier company must be versed in proper contractual provisions, terms of the agreements to protect their interests. While it’s always a smart idea to hire a business lawyer for these matters, you as an employee or manager should also be familiar. 

Terms to consider including in a SAAS Agreement

Within the agreement, both parties should have clearly defined expectations, deliverables, and terms of business. For example, under the Standard Terms and Conditions, cloud software suppliers should provide clients with:

-Easy and convenient access to the predetermined application.

-All necessary technological updates.

-Data storage and backup.

-Data protection.

-Customer/End-User support.

Be Specific 

With any contractual agreement, specificity is key, and that’s equally if not more true for SaaS agreements. The specific business trading terms your organisation needs will be unique to your requirements, therefore its important for both buyers and suppliers to ensure that the SaaS agreement reflects those needs.