8 Tips for SaaS Deals wiout Pain by Frank Bruno

There are a lot of what ifs when it comes to Software-as-a-Service (SaaS). And, when those questions are not addressed at the negotiation stage, they can result in real pain if something goes wrong between a SaaS provider and a subscriber.

Presenting on behalf of Iron Mountain Intellectual Property Management, I recently had the pleasure of presenting a seminar with Attorney Mark Grossman at Tannenbaum Helpern Syracuse & Hirschtritt LLP in New York City. The focus of the seminar was SaaS Deals without Pain. We talked about how cloud computing can come with significant risk if adequate protections are not built into the subscription agreements.

That's why it's imperative that SaaS subscribers beware and be prepared. At the same time, SaaS providers should be able to offer assurances for their customers. Last, but not least, legal professionals - representing either subscribers or providers - can help the situation by developing best practice strategies necessary to protect their clients' investments in SaaS.

Here are eight top tips from our seminar for cloud contingency planning:

Understand the true risks of doing business (i.e. sudden cessation of business, force majeure)

Asses the risk! What is at stake? What is the impact to the business?

Communicate the concerns internally and externally

Seek out the expertise of stakeholders who will ultimately execute the contingency plan

Conceive the contingency plan based on the real concerns about doing business

Document the plan and take a proactive approach with respect to the negotiations

Seek out a reputable, neutral third party to enable the contingency plan

Test everything to make sure it works!

With SaaS, it's not just the application at stake, but the subscribers' data is in the cloud as well. Therefore, subscribers should assess their risk and develop a contingency plan that takes into account their risk and recovery requirements.

For the SaaS subscriber, some of the benefits of contingency planning include application continuity, time to migrate to a new solution, and unencumbered access to their data. For the SaaS provider, contingency planning satisfies a client requirement, instills trust with the buyer, and overcomes risk objections to doing business.

Negotiating a contingency plan and addressing the what ifs at the beginning of a SaaS deal is a wise move for both subscribers and providers.

If you have any questions, or would like to request a CLE session at your law firm, feel free to email us at escrow@ironmountain.com.

LINK:	http://blogs.ironmountain.com/2015/service-lines/technology-escrow/8-t...
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