What is a SaaS Agreement?
A SaaS agreement is the name commonly used for the contract or licensing agreement between a SaaS provider and a SaaS customer which spells out the terms under which SaaS software may be subscribed to or accessed. This will typically include a service level agreement (SLA).
Differences between a SaaS Agreement and a Software License
A SaaS agreement is different from a typical software license because:
· The SaaS customer will not usually receive a physical or installed copy of the software. Rather, the customer will access the SaaS application through the cloud
· There is no ownership in the SaaS software by the SaaS customer. Rather, the customer typically receives a license or a subscription to use the SaaS product.
· The customer‘s access or right to use SaaS software will end upon termination or expiration of the SaaS agreement.
Is a Service Level Agreement (SLA) a Software License?
No. A service level agreement (SLA) sets forth what SaaS services are being provided by the SaaS vendor in addition to the right to use the SaaS software.
These will typically include:
· Hosting of the SaaS software and customer data on a server;
· Guarantee that the SaaS Software will be up and running 99.5% of the time.
· Customer support services; and
· Software maintenance.
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