Software as a Service Agreement

How are Software as a Service agreements different from EULAs?

  • Sofware as a Service Agreements should describe how your SaaS service works, and describe how your service works. 

    • Usually no software runs locally and the customer little to no control over the underlying operation of the software.  That really is the nature of a SaaS business.
    • Keep in mind that each software as a service business is somewhat unique, as there is no one size fits all software as a service business.
  • There is no license grant necessary in a software as a service agreement.

    • Software as a service agreements are typically term based (i.e. not perpetual).
    • You actually don’t need  a license in  most software as a service agreements, as the service is cloud based.
  • SaaS data is typically hosted by the SaaS provider and not the end user (at least most of the time).


  1. Make sure you work with someone who really understands the unique nature of your software as a service business so that they can help you can get your software as a service agreement right!

  2. Oh yea, software as a service agreements don’t have to be complex or long, as they can be simplified and drafted in plain English.

  3. Below are some blogs posts that may be helpful in learning more about software as a service agreements. 


Software as a Service Agreement