SaaS agreements
We advise software businesses and technology companies on SaaS agreements (Software as a Service agreements). This includes drafting, reviewing and negotiating contracts for cloud-based software services, software subscriptions and related support arrangements.
We also review template and AI-generated SaaS agreements. While these can be useful starting points, they often require tailoring to reflect the particular service, business model and allocation of risk.
What is a SaaS agreement?
A SaaS agreement governs the relationship between a software provider and its customer where the software is accessed online rather than installed permanently on the customer’s own systems.
The agreement typically deals with access to the service, support, service levels, customer responsibilities, data protection, liability and termination.
Why are SaaS agreements different from software licence agreements?
Traditional software licence agreements often involve delivery of software which is installed and operated by the customer. SaaS services are usually hosted and controlled by the supplier.
As a result, SaaS agreements often place greater emphasis on availability, support, service levels, customer data and ongoing performance of the service.
What should a SaaS agreement cover?
The appropriate terms depend on the service, but common issues include:
- subscription fees and payment terms
- service levels and uptime commitments
- maintenance and support
- customer onboarding and implementation
- customer responsibilities
- data protection and GDPR compliance
- security obligations
- liability limitations
- termination and suspension rights
- customer data return and deletion procedures
Who owns customer data?
SaaS agreements should clearly address ownership and control of customer data.
Customers will generally expect ownership of their business data to remain with them. The supplier may require rights to process that data for the purpose of providing the service.
The agreement should also address what happens to customer data when the service ends.
What are service levels?
Service levels are commitments about the performance of the service. These may include uptime targets, response times and support arrangements.
Where service levels are offered, the agreement should clearly define how performance will be measured and what remedies apply if targets are missed.
What happens when a customer leaves?
Exit arrangements are often overlooked when SaaS agreements are prepared.
The agreement should address matters such as data export, migration assistance, continued access during transition periods and deletion of customer information after termination.
Are template or AI-generated SaaS agreements sufficient?
Not always. SaaS businesses vary considerably in their pricing models, support commitments, data handling practices and risk profile.
We regularly review and tailor template and AI-generated SaaS agreements to ensure they reflect the particular service and commercial objectives of the business.
Frequently asked questions about SaaS agreements
Do SaaS businesses need bespoke agreements?
Often yes. Generic templates may not properly reflect the service, pricing model, support arrangements or allocation of risk.
Who owns customer data in a SaaS platform?
The agreement should clearly define ownership and usage rights. Customers generally expect ownership of their business data to remain with them.
Can you review a template or AI-generated SaaS agreement?
Yes. We can review and tailor SaaS agreements to ensure they properly reflect the service and commercial arrangements.