Important Factors in Software as a Service Agreements
Software as a service (SaaS) is hugely beneficial to companies because it permits companies to store software remotely so client-side computers can access it without the need for extensive I.T. infrastructure. If you run a company that often contracts with SaaS providers, make sure the SaaS agreement is beneficial to your interests and not just the service provider’s interests. Hiring an experienced business attorney to review a SaaS agreement and propose changes where necessary can help avoid any potential pitfalls.
Important SaaS Agreement Factors
Businesses should consider the following factors when negotiating a SaaS agreement:
- The service itself. You may find too late that you have entered into a SaaS agreement for services that you do not need or want—or what you thought you were purchasing. If you before you enter into a SaaS agreement, hire both I.T. professionals and an attorney to review the SaaS agreement to ensure that the services you think you are contracting for are the services you will receive.
- Pricing and additional fees. SaaS agreements often contain confusing pricing structures and excluded services that require additional fees. Before you enter into a SaaS agreement, you will want to understand the pricing structure and the terms included versus what services will result in extra charges.
- Term and renewal. Understand the length of the agreement and what happens when the agreement expires. Does it automatically renew, or do you need to affirmatively renew it with a new SaaS agreement? This means the difference between retaining the same price structure rather than negotiating a new price structure.
- Service level agreements. The service level agreement is the service provider’s affirmation that the services offered are reliable and available a certain percentage of the time, such as 99.99 percent of the time.
- Support. The service provider should provide support where needed. Is the support included as part of the SaaS agreement, or is it a separate fee? You may find the fees unexpected and onerous.
- Data retention. You will want to know how a provider stores data, how it is backed up, and how to export or migrate it in case you switch service providers.
Contact a Houston Business Contracts Attorneys at Weisblatt Law Firm, LLC, Today
Before entering into a SaaS agreement, review the contract with a knowledgeable business lawyer. The Weisblatt Law Firm, LLC, can review the agreement to ensure it meets your needs and does not contain any unexpected or expensive fees. We can propose changes we deem necessary and negotiate the agreement with the service provider. If any disagreement should arise after the agreement executed, we can champion your position. Call a Houston business attorney at the Weisblatt Law Firm, LLC, today at (713) 352-0847 or contact the office online to review your SaaS agreements.