Key Areas For Reviewing Software-As-A-Service Agreements

By Jane Song and Todd Schneider (December 1, 2017, 2:17 PM EST) -- Today, software is commonly accessed through the cloud or the software as a service (SaaS) model. Software providers prefer this model, where the software is hosted by or on behalf of software providers and accessed by multiple customers over the web. Advantageously, the providers can often receive recurring revenue and do not have to deliver any actual software code to customers. Customers also often prefer this model as it provides cost savings, since customers do not need to purchase dedicated hardware to host the software or pay for a perpetual license upfront. Agreements for SaaS services, however, are often rather provider favorable and not subject to much negotiation. This article describes the material areas to focus on when customers are reviewing a SaaS agreement....

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