Negotiating SaaS Deals: Key Client and Vendor Facing Terms

(178 Ratings)

Produced on: June 26, 2018

Course Format On Demand Audio

Taught by

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Course Description

Time 67 minutes
Difficulty Beginner

Software as a Service (SaaS) is an increasingly prevalent class of technology transaction. Via SaaS, companies of varied sizes and risk profiles outsource elements of their data stewardship to third party organizations, in order to benefit from these third parties’ software platforms.

As SaaS proliferates - through corporate cloud usage, for example, which Gartner predicts will result in $1 trillion in IT spending over the next five years - the agreements underpinning SaaS grow progressively vital to the enterprises that execute them.

Still, the SaaS market is only growing. Online statistics company Statista predicts the cloud SaaS market will hit $116.39 billion in 2018, a more than $10 billion increase from 2017. Software companies are forced to grow in kind, or fold: a 2014 McKinsey & Company article asserted that software companies growing 20% annually have a 92% chance of shuttering in a few years.

In this course, attorneys Erica Grace Martin and Larry Schultis discuss the most important elements to any SaaS agreement - from both sides of the table. Whether an attorney represents a vendor or customer of a SaaS solution, an in-depth understanding of the priorities of all parties involved is essential towards negotiating a mutually beneficial SaaS agreement.


Learning Objectives:

  1. Define “SaaS”
  2. Identify the difference between an End User License Agreement and a SaaS Agreement
  3. Address the contractual terms in a SaaS Agreement, such as “license scope,” “hosting,” and “disaster recovery and “business continuity”
  4. Discuss the issues of termination of a SaaS Agreement

Faculty

Larry Schultis

Schultis Law Group PLLC

Mr. Schultis devotes a significant portion of his practice to counseling clients on large-scale, complex strategic information technology and business process outsourcing, transformational outsourcing, software development, systems integration, facilities management and other strategic technology transactions. He has negotiated and documented a wide variety of technology-related transactions including onshore and offshore outsourcing transactions, facilities management, the development of systems integration and custom system contracts, the licensing of computer software and hardware acquisition and maintenance agreements.

During the past 18 years, Mr. Schultis has represented more than 100 corporations and governmental entities on strategic outsourcing and licensing initiatives with a total contract value in excess of $15 billion. These transactions include information technology outsourcing (service desk operations, data center operations, desktop support, and applications development and maintenance), systems integration arrangements and business process outsourcing relationships covering recruiting, legal process outsourcing, human resources, and facilities management among others. Mr. Schultis is often involved in the full life cycle of the transactions and has worked on a number of second generation transactions for which he structured the first generation.

Mr. Schultis has undertaken numerous high-profile technology transactions, including significant outsourcings for major financial institutions, a big-four accounting firm, telecommunications firms, hospital systems and major broadcasters. Mr. Schultis has represented a wide variety of service providers, including a top-ten consultancy, market leaders in software for network security, customer care, patient records, video processing and credit card processing. Mr. Schultis' 10 years of prior experience as a programmer, systems analyst and IT manager provides him with unique perspectives on technology transactions. Mr. Schultis has substantial experience representing both technology consumers and vendors.

Mr. Schultis advises senior executives on establishing In-house expertise in intellectual property and vendor management. Advice often focuses on drafting policies and procedures, development and maintenance of forms, selection, training and mentoring of legal staff, and development of tools and processes that allow for achievement of repeatable and consistent business and legal results.

Mr. Schultis has been recognized by Legal 500 as a leading attorney in his field. Mr. Schultis is a frequent speaker on technology transaction-related matters. Prior to forming Schultis Law Group, Mr. Schultis was a partner for ten years with the firm of Pillsbury Winthrop Shaw Pittman LLP.

Mr. Schultis received his Bachelors of Business Administration from The George Washington University in 1985 and his JD from The George Washington University National Law Center in 1992. Mr. Schultis has lectured and written about technology transactions, contract law, software licensing, and outsourcing.

Mr. Schultis is admitted to practice in New York, Virginia and the District of Columbia.

Erica Martin

Schultis Law Group PLLC

Ms. Martin is an associate at Schultis Law Group.  Since joining the group, she has focused her practice on services agreements, service levels, and other similar technology transactions. 

 

Prior to joining Schultis Law Group, Ms. Martin worked as an Intellectual Property attorney for a media company where she handled media contracts, licensing agreements, and trademarks.

 

Ms. Martin received her Bachelors of Arts in Philosophy from Morgan State University in 2005, her JD from North Carolina Central University School of Law in 2009 and her LL.M. in Intellectual Property from The George Washington University Law School in 2011. 

 

Ms. Martin is admitted to practice in New York. 

Reviews

DB
Douglas B.

Very substantive

EP
Elizabeth P.

Useful information.

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