28 January 2021
SaaS or Software-as-a-Service is a software distribution model in which a third-party provider hosts applications centrally and licenses them to customers over the internet on a subscription basis. An example of a digitized economy, SaaS is one of the three main categories of cloud computing, alongside Infrastructure-as-a-service (IaaS) and Platform-as-a-Service (PaaS).
While SaaS has turned out to be quite helpful to organisations in terms of flexibility and cost-effectiveness, recent stories around hacking and data leaks shed light on the vulnerability of these centrally-hosted software systems. In this regard, software developers should have well-drafted agreements in place to not only protect legal responsibility but also safeguard the distribution and subscription licensing of the offering.
B2B SaaS companies, as the name suggests, offer cloud business management solutions ( products and services) to other companies. On the other hand, B2C SaaS businesses sell products and services to consumers directly. Both B2B and B2C are based on subscriptions and track customer acquisition cost, churn rate, and user lifetime value metrics.
However, their marketing strategies approaches are different. For example; B2B customers have experience in a given product or service and hence if you are serving as a B2B SaaS marketer, the strategy would be more professional and thought through. While, if you are a B2C SaaS marketer, you will need to be more simple in your approach, in order for the customer to understand the product/service better.
A SaaS agreement is basically a document that sets out the provision and delivery of software services to customers through the internet. As the offering is licensed on a subscription basis and centrally hosted, it is often distributed on-demand on cloud. The agreement is a serious undertaking which requires careful consideration. Once properly drafted, it eliminates the hassle around conventional software licensing models.
Note- The terms in a SaaS agreement can be renewed when the subscription period expires
An End User License Agreement is exactly what it sounds like - an agreement encompassing the license to a software for the end users. When you purchase a software product/program, EULAs are included so that you can install the product/service on your personal device. This licenses the end user to use the software in a limited manner.
However under SaaS applications, users do not get a copy of the software. SaaS is usually hosted and accessed through the internet.
|Full Form||Software-as-a-Service||End User License Agreement|
|Ownership||Vendor offers the software and users access it on the internet on a subscription basis. Ownership of software is not transferred to the user||Software is purchased by the end user. Users have all rights - including copyrights. The user can make copies of the software for personal use|
|Termination of Usage||User’s right to the software ends upon termination of the SaaS agreement||User owns the software and has the grant of copying, downloading and installing it but is not allowed to resell it|
|Licensing/Access||The customer is usually granted an access to use the software||The customer is provided with the licensing of the product/software|
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