Software as a Service Evaluation Agreement

Summary

This precedent is a software as a service ("SaaS") evaluation agreement. This precedent includes practical guidance and drafting notes. SaaS is a cloud computing model where software is licensed on a subscription basis and hosted centrally. This model is widely adopted by nearly all enterprise software companies and includes various types of software. Customers access the software over the internet and pay a fee for its use. This precedent contemplates a SaaS arrangement with a specified evaluation period for the services. Counsel should note that SaaS agreements come with many of the same risks as other forms of outsourcing, including risks associated with service continuity, protection of customer data and compliance with privacy laws. Therefore, it is highly recommended to negotiate SaaS agreements carefully to ensure a balanced allocation of risk. For additional information on cloud computing and related technology agreements, see the practice notes: Infrastructure as a Service and...