SaaS contracts can look very different than regular contracts. Make sure you know exactly what the special considerations of a SaaS contract are so you can cover all the right elements to accelerate negotiation and get signatures faster.
Buying software used to be straightforward. You walked into a store, selected a physical product, paid a flat fee for the software, and downloaded it onto your computer. That was it, and if you wanted updates or the latest version, you’d repeat the pattern in a year or two. Enter the SaaS era. Suddenly, things aren’t so simple anymore. Purchases can be ongoing with additional products and services being offered at time of renewal. There are additional terms to consider— adding users, subscription pricing that require renewals, additional products such as API, SLAs, security, data, and maintenance—and you need to understand who’s able to use the product, how much it costs, and how and when it will be paid for. With so many considerations, contracts can quickly become unruly and complicated, increasing room for error or forgotten information. You need to address all these things up front and build a relationship that has open communication, trust, clarity, and satisfaction on both sides of the contract. Let’s look at how to do that by looking at the information you need when you sign a SaaS contract.