Knowledge Resources › SaaS Agreements
Last updated: 20 August 2026
Software-as-a-Service (SaaS) is software provided as a hosted, subscription service rather than installed and owned by the customer. Because the provider hosts the software and often the customer’s data, a few terms tend to matter more than in an ordinary licence. The points below are general and not exhaustive.
Terms that commonly matter
- Subscription and scope — what the service includes, the number of users or usage limits, and any restrictions.
- Fees and renewal — the charges, how and when they can change, and whether the subscription auto-renews.
- Service levels (SLA) — availability/uptime commitments, support response times, and what happens if they are not met.
- Data protection and security — who processes any personal data and on what terms (a data processing agreement is often needed), and the security measures the provider commits to.
- Data ownership and exit — confirmation that the customer’s data remains its own, and how data can be exported or retrieved when the contract ends.
- Intellectual property — ownership of the software and of anything the customer creates using it.
- Confidentiality — how each side protects the other’s confidential information.
- Liability — caps and exclusions on the provider’s liability, and any carve-outs.
- Term, suspension and termination — how long it runs, when the provider may suspend the service, and how either side may exit.
- Changes to the service — the provider’s right to modify features, and notice of material changes.
- Governing law and disputes — the applicable law and how disputes are resolved.
What is acceptable depends on the parties’ bargaining position and the sensitivity of the data involved. This page is a general overview and is not legal advice.