SaaS Agreements – Data Protection – Cyber Security Issues

SaaS Customers are increasingly raising questions about the security provisions that SaaS suppliers include in their SaaS agreements and insisting on including onerous rights of audit to monitor and check compliance. Under the UK’s Data Protection Act (DPA) SaaS customers (data controllers) are required to take appropriate technical and organisational measures to prevent the:

unauthorised or unlawful processing of personal data; and
accidental loss, destruction or damage to personal data.

In order to comply with these duties and avoid substantial fines SaaS customers need to ensure that SaaS suppliers have adequate security measures in place to prevent data protection breaches from occurring.

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SaaS Agreements – FAQs – What is SaaS?

SaaS is the abbreviation for “software as a service”. You may know this under another name, for example ASP services (application service provider), software on demand or software subscription. These names all refer to the same thing – software being made available via the Internet to users.
What is a SaaS Agreement?

A SaaS agreement is simply the name used for the agreement between a SaaS supplier and a SaaS customer which sets out the terms under which SaaS software may be accessed. This will usually include a service level agreement (SLA).

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SaaS Agreements – FAQs – Transferring Data Outside the EEA

When negotiating a SaaS agreement with SaaS customers you will often need to transfer customer data outside of the EEA (European Economic Area). This could be at the request of your customer or more usually because you have a sub-contractor such as a data centre located outside of the EEA. SaaS suppliers should be aware of the following in order to comply with their duties under the Data Protection Act.

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Bodle Law
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