Why Not to Use “License” Agreements for Software-as-a-Service (SaaS) Deals
This article has been updated with a new one: “Don’t grant a license to SaaS, AIaaS, or Other Cloud Services.” Many software-as-a-service (SaaS) contracts grant a “license” to the vendor’s software. That’s a mistake. Licenses authorize making copies of on-premise software. Customers don’t copy SaaS, so they don’t need a license. And if you’re the […]
Don’t Use License Agreements for Software-as-a-Service
Many software-as-a-service (SaaS) contracts grant a “license” to use the vendor’s software. That’s a mistake. Licenses authorize making copies of on-premise software. SaaS isn’t copied, so it doesn’t need a license. And if you’re the vendor, a license can hurt you. SaaS Customers Don’t Copy Software The confusion stems from the role of “software” in […]