A swift rise to the cloud – Undoubtedly, the paradigm of software enterprise is shifting away from on-site to being hosted remotely through cloud applications, and this change has occurred remarkably rapid. Here, we will take a closer look at the benefits and risks of utilizing cloud-based applications.

The Benefits of a SaaS Application for the Purchaser

1. It reduces the purchaser’s need for a dedicated internal IT resource

Rather, the purchasing client will “subscribe”, usually on a yearly basis, to the rights of use of a provider’s cloud processing infrastructure and applications. The administrative responsibilities associated with implementing and maintaining a new environment are shifted to the vendor, the upgrade responsibility, the Security of that platform, the need to keep the platform updated are all shifted along with that hosting service responsibility.

2. Potentially much faster implementaion

When a client subscribes to a provider’s cloud, there is no need to have the software applications installed in their personal computing environment. Rather, the applications will be hosted in the provider’s cloud. Most SaaS environments are multi-tenant environments that host many separate instances, securely is a shared environment. It is an easy task to stand up (create) and additional secure dedicated instance to support another new user. Although configurations may still be required for optimization, the general software will not be installed in the customer’s drive.

 3. Lower Initial Acquirement Costs

When it comes to SaaS applications, customers do not need to spend on hefty up-front licensing fees usually required for traditional, long-lasting and non-exclusive licensing for the use of the software. On the contrary, SaaS applications are licensed as a subscription with yearly fees. It is difficult to accurately analyze the ROI, You certainly do not require the incremental capital cost of new equipment,  you need not dedicate an internal staff to implementing and supporting the SaaS application and there in a tremendous advantage in time to operational utilization (time to value).  Whereas your on-premise perpetual license is a pre-paid operational expense, whereas much of your in-house on -premises equipment, and perpetual license costs are capitalized.

4. No Maintenance Issues in the Installation

Enhancements, bug fixes, upgrades, updates, etc., are regularly made across the code base hosted by the provider and will apply to all clients. It should be noted, however, that the subscription licensing fees will usually include a maintenance fee. In the event that the customer needs premium Service Level Agreement response, this is usually accompanied by additional charges. General technical support, software updates and a baseline SLA assistance are all typically included in your SaaS license.

5.Consistency

A majority of cloud providers will commit to service level agreements, which guarantee about 99% of uptime and availability, although this is subject to greater forces, such as power and Internet outages or other exceptions.  In addition they typically categorize the severity of the service problems that you may encounter with the SaaS application and commit to responding based on the severity of the problem; i.e. a critical problem may have an average response time of 1 hour; whereas a minor problem may be 48 hours.

6. Data Security

In today’s world, a customer’s biggest concern regularly falls under data security, particularly when their data is stored off-site. Given the importance of these concerns, reputable vendors will usually offer robust data securities, which will often exceed what the client would otherwise have. This is especially the case for smaller companies without overzealous IT resources, staffing, and expertise.

Hire the Support of a Qualified SaaS Agreement Attorney

Presently, cloud-based software is a necessity for many companies, and this is particularly true when the software is no longer available through traditional methods. Whether you are the client looking to enter into a SaaS agreement or a vendor or developer, looking to distribute the software, it is essential to speak to a knowledgeable attorney who will help you review the agreements and negotiate the terms with your best interests in mind.

Attorney John P. O’Brien has many years of dedicated experience working in the tech industry. Working alongside software developers and grand manufacturing companies Attorney O’Brien has the skills and knowledge in the industry to understand what his clients need in a SaaS agreement. Whether you are a software developer or a customer, seek the legal knowledge and skill of a proficient attorney straightaway.