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Monthly Archive for December, 2010

Negotiating a SaaS Contract

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I talked about SaaS Contract Negotiations before, but I found another great article from ERP Software Advice on this topic here. The author describes 9 points that can be negotiated within a SaaS agreement. Here is a short summary:

1. Pricing and Discounts: Obviously, published pricing can usually be negotiated, and the bigger the deal, the bigger the discount.
2. Additional Costs: Aside from the standard monthly fee, other costs can quickly add up, such as fees for additional users, customizations, integrations, third-party services, training and set-up fees.
3. Term: A longer term can mean a better deal.
4. Service Level Agreements: Make sure that SLAs – the vendor’s commitment to keeping the system up and running – are clearly defined in the contract.
5. Renewals: This process is an opportunity to renegotiate or exit a bad contract. Make sure there you are still in control when it’s renewal time.
6. Scalability Pricing: Find out what pricing options are available to increase the number of users and if there is the possibility to decrease it.
7. Support: The contract should describe the level of support that will be received: is it delivered via the web, email, phone? Is it 24 / 7?
8. Backups and Recovery: The contract should specify how often backups are performed, how long it will be kept, and if it is kept in a separate center in case of disaster.
9. Data Export: Can data be retrieved from the system?

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Tips for SaaS Contract Negotiations, and Knowledge Transfer
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