Checklist: SaaS

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?

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