Issues to consider when negotiating a SaaS (Software as a Service) agreement include:
- How is the customer on-boarded/integrated? What remote or physical access to the customer’s IT systems does the supplier need?
- Are there any other customer dependencies? What happens if the supplier fails to meet the installation or go-live date?
- Is there a minimum term during which the customer is unable terminate? After the end of the minimum term, does the term renew for a further fixed period, or can it then be terminated at any time? Can the customer terminate during the minimum term/renewal term, but subject to an early termination payment?
- Will the supplier be accessing, storing or otherwise processing any of the customer’s personal data? If so, have the parties agreed data processing terms?
- What IT and other security measures will the supplier maintain in relation to the customer’s data?
- What service levels apply to the services, particularly regarding availability and fault fixing times? Is the customer entitled to service credits and/or to terminate the agreement if service levels are not met?