SAAS, ASP, software on demand – confused?

What is SAAS?

This is the abbreviation for “software as a service”.  You may know this under another name, for example ASP services (application service provider) or software on demand. These names all refer to the same thing – and simply mean that you are accessing and using software via the Internet.

How is SAAS different from a standard software licence?

A SAAS agreement differs from a standard software licence, as you will not usually receive a physical or installed copy of the software. Also  no ownership in the software will be transferred to you.  You are simply given the legal right to access and use the software for the length of the software licence  granted to you.

Is a service level agreement (SLA) a software licence?

No. A service level agreement sets out the services being provided in addition to the right to use the software, namely the hosting, support and maintenance services.

Due to the unique nature of SAAS agreements to seek specialist legal advice on the content of such agreements. This will ensure that your rights are adequately protected, particularly in the event of things going wrong.


For assistance with SAAS, ASP, software on demand contracts,  SLAs or any other IT legal issues contact me at:

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