Gartner Research

Think Twice Before Signing SaaS or Cloud Agreements for Contract Life Cycle Management

Published: 27 February 2013

ID: G00248524

Analyst(s): Alexa Bona, Nigel Montgomery, Deborah Wilson

Summary

Contractual omissions in software as a service or cloud-hosted agreements for CLM can expose customers to additional noncompetitive and potentially unbudgeted services costs. CIOs should add Gartner's 16-point guide to the due diligence of anyone negotiating CLM contracts.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Familiarize Yourself With Our 16 Points for SaaS Success in CLM
    • Scope the Project in Full
    • Involve Your IT Procurement People
    • Scope Your Configuration Needs
    • Ensure Data Access
    • Be Wary of Usage Cost Increases
    • Ensure Confidentiality
    • Clarify Insurance Coverage
    • Assess Vendor Viability
    • Understand Backup and Disaster Recovery Commitments
    • Define Downtime
    • Clarify Intellectual Property Challenges
    • Require Breach Risk Notification
    • Ensure Inclusion of Product Specifications and Documentation
    • Consider Geographic Coverage
    • Specify Subcontractor Liability
    • Beware of the Competitive Gatekeeper Clause

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