Why Not Use “License” Agreements for Software-as-a-Service (SaaS) Deals?

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 vendor, a license can hurt you. [I’ll explain below – but for a deeper dive, please join us for the […]

SLA terms may be more negotiable than you think

Cloud services providers often say they can’t negotiate their SLAs. All customers get the same SLA, so customizing terms for one customer would require changing procedures used for everyone. That’s often true, but customers should test the limits of SLA flexibility. Not all SLA revisions require that the provider change its procedures. Terms addressing “legal” […]

Yes, You Can Negotiate SLA Legal Terms

IT providers often argue that they can’t negotiate service level agreements (SLAs). They’re right in most cases, but with important exceptions. SLAs govern procedures for fixing broken technology, as well as credits for downtime. The provider generally can’t modify the procedures and software it uses for that support — at least, not at reasonable cost. […]

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 […]

Don’t Use License Agreements for Software as a Service

Most IT contract drafters know the difference between a software license agreement and a technology services contract. In a license, the customer gets rights to copy and use software, while in a services contract, the customer gets a service, like tech support or IT consulting. But software as a service (SaaS) seems to throw a […]