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What is SaaS and what do I need to arrange for it?

SaaS (Software as a Service) is software that you purchase via the internet instead of installing it yourself. It is flexible, but you become dependent on the supplier. Therefore, arrange clear agreements regarding availability, details, and...

Published on September 3, 2020 by MKBjuristen.nl
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SaaS (Software as a Service) is software that you purchase via the internet instead of installing it yourself. It is flexible, but you become dependent on the supplier. Therefore, arrange clear agreements regarding availability, data, and exit in a SaaS agreement, an SLA, and — for personal data — a data processing agreement.

What is SaaS?

With Software as a Service, a vendor develops the software and you use it via the internet, usually for a periodic subscription. You do not manage the software yourself and do not need to install or maintain anything. That is convenient, but it makes you dependent on the vendor and their availability.

The SaaS agreement

The SaaS agreement regulates the core: what you purchase, the right of use, the price and term, liability, and intellectual property rights. Importantly, you only receive a right of use, not ownership of the software.

Availability and the SLA

Because you depend on the service, availability is crucial. A Service Level Agreement (SLA) sets out the guaranteed uptime, response times, and the consequences of outages. Pay attention to the measurable levels and what happens if the supplier fails to meet them.

Data, privacy and exit

If the SaaS provider processes personal data, you need a data processing agreement (Article 28 GDPR). Also arrange what happens to your data and how you will retrieve it if the collaboration ends (exit). This prevents you from being left without your data upon termination.

Frequently Asked Questions

Which documents do I need for SaaS?

A SaaS agreement, an availability SLA and, for personal data, a data processing agreement.

Will I become the owner of the software?

No, with SaaS you receive a right of use, not ownership. The supplier retains the rights to the software.

What happens to my data if I stop?

You must arrange this in advance in an exit clause: how and in what format you will receive your data back and when it will be deleted.

Get your SaaS set up properly?

Our legal experts draft your SaaS agreement, SLA , and Data Processing Agreement . Schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

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A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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