Saas Vendor Agreement

In addition, SaaS model providers often offer customers some kind of service level commitment, which is usually an availability requirement. However, in the case of on-premise software, vendors do not have the same type of control over software and therefore cannot take the same type of availability requirement. However, when the customer also purchases maintenance services, creditors often offer service level obligations in terms of reaction time to address different degrees of severity. In a SaaS model, the seller generally undertakes to maintain certain security obligations regarding the supply and use of software functionality by the customer for the duration of the agreement. These security measures generally apply to customer data provided to the vendor through the use of the software. However, in a local model, vendors will often not accept any security obligations with respect to the software, as the software is hosted by the customer and installed behind the customer`s firewall. As a result, the vendor is not able to implement and manage the security functions regarding how the software is used by the customer. It can be touched or missed. In most cases, you`ll find this contractual information stored on a shared drive or on the online file storage location. Most companies do not have extravagant contract management systems. In some cases, fully executed vendor agreements or records are still in some people`s email archives. Many companies do not conduct due diligence when reviewing contractual terms to ensure that they are protected in the event of a supplier separation, including the provisions described above, such as access to data and protection of renewal prices. In a SaaS model, the vendor will generally guarantee and ensure that the software works for the duration of the agreement in accordance with the documentation describing the respective functionality of the software.

Conversely, in a local model, the vendor will generally ensure and guarantee that the software will work for a limited period of time (for example. B 90 or 180 days) once the software is made available to the customer for installation and is free of errors such as viruses, bugs, malware or “delay bombs.” All provisions of a vendor contract need to be thoroughly reviewed, but some of the most overlooked provisions that need to be proactively verified in cloud-based software or a SaaS subscription contract – especially if you are negotiating a new contract, or if you are approaching a renewal or termination date – are the terms of the data access contract and price protection after the expiry date.

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