Software as a Service Agreement or SaaS agreement regulates the provision of software-as-a-service (SaaS) to customers by means of the internet. The agreement, inter-alia, covers, amongst other things, the customer’s rights to use the services and the limitations upon that usage. Software as a Service (SaaS) arrangements are increasingly replacing on-site software licensing for many IT applications. Migrating software applications to the cloud can have significant cost and operational advantages. However, to skilfully negotiate and draft SaaS agreements, lawyers must understand not only the legal issues that are common to the software license and SaaS agreements, but also those that differ. Key among these SaaS issues are the nature and scope of permitted use.
