SaaS Agreements – SLAs – Business Continuity and Escrow Agents

SaaS customers are increasingly asking for disaster recover provisions to be included within the terms of a SaaS agreement to ensure that they have access to their data and continuity of service if a problem arises at the SaaS supplier’s data centre. The costs of providing disaster recovery used to be prohibitive, due to the requirement of having mirrored servers and transferring data, however there is now a new market opening up with former escrow providers offering a variety of disaster recovery options at affordable prices.

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SaaS Agreements – Need for an Escrow Agreement

Having an escrow agreement in place protects all parties involved in the development, supply and use of business critical SaaS applications. It provides customers with peace of mind for securing long-term availability of a critical SaaS application by enabling customers to update software and fix any bugs even if the supplier is no longer able to support them.

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Cloud based Software, Cloud based Technologies, Cloud based Services

If things go wrong, your data is lost and your customers start to move to your competitors – making a claim for breach of contract will not repair the damage already sustained to your finances and business reputation. These issues should be dealt with upfront, as part of the commercial negotiation process, with the assistance of an experienced specialist SaaS lawyer. Thereby your interests can be adequately covered to minimise the risks of the above scenario occurring.

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IT Law

Bodle Law provides English legal advice to business customers and suppliers on all legal issues relating to information technology law, IT law and in particular SaaS, GDPR and cloud computing. Irene Bodle is a specialist IT lawyer with more than 14 years experience advising on IT law. I provide commercial

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SaaS, ASP Agreements – FAQs – Security

What data security provisions need to be included in a SaaS agreement? Customer’s Security Obligations – These should be set out in the software licence. Access to the software and services should not be permitted to third parties without prior authorisation from the supplier. The customer should provide the following warranties:
– existence of adequate security measure to ensure access to the software and services does not breach the terms of the SaaS agreement

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SaaS, ASP Agreements – FAQs – Software Licence

The software licence to be included in a SaaS agreement is very different from the standard software licence found in non-SaaS agreements for the following reasons. Access to the software is provided together with support and maintenance services. Without support and maintenance there can be no licence and vice versa. This is because the customer has no copy (physical or intangible) of the source code or object code. The software is installed on the supplier’s server and accessed by the customer via the Internet.

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SaaS, ASP Agreements – FAQs – Escrow

When negotiating a SaaS agreement you may come across the term escrow. What is escrow and is an escrow agreement necessary? Under the terms of a SaaS agreement you do not own or have any rights to the software (which includes the source code) that you are accessing. This is usually not an issue until technical problems arise, i.e. unexpected service interruptions, downtime, loss of application functionality and loss of data. This can add significant costs to your business and you are dependent upon the supplier to resolve these issues, unless you have an escrow agreement in place.

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SaaS, ASP Agreements – Source Code and Object Code

When negotiating a SaaS agreement you will come across the terms source code and object code. What is the difference between source code and object code? Source code is the version of a computer programme that exists prior to the software being ready to compile and run on a computer. The source code consists of a number of statements created in a text form by a programmer.

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