Software as a Service (SaaS) has developed how businesses access and use software. Instead of purchasing licenses and installing programs locally, users now often subscribe to cloud-based applications that are continuously updated and maintained by the software provider. But with this convenience comes complexity—especially legally.
Whether you’re a software developer, or a business purchasing a SaaS product, this article offers a practical checklist when looking at SaaS agreements.
SaaS offering: Outline what the SaaS does, what’s included in the offering, and any limitations. Avoid vague language that could lead to disputes. Certainty is important.
Service Level Agreements (SLAs): Set out service levels and uptime guarantees, support response times, and remedies for service failures. SLAs are critical for managing expectations and accountability.
Term, Termination and Exit Strategy: How long is the agreement? Clarify how either party can terminate the agreement and what happens to user data. Include provisions for data export and deletion.
Intellectual Property Rights: Address ownership of the software. Grant customer right to access and use the software.
Data Ownership and Access: Specify who owns the data, how it can be accessed, and what happens to it upon termination of the contract.
By following this checklist, you can ensure your SaaS agreement is legally sound, Whether you’re building or buying SaaS, a structured approach will help you mitigate risks and maximize value.