Gartner Research

Key Terms to Negotiate in SaaS SLAs to Reduce Risk and Improve Service

Published: 22 February 2016

ID: G00294077

Analyst(s): Jo Liversidge , Dawn Hubbard

Summary

In 2016, SaaS spend will exceed on-premises spend for certain business applications. Service-level agreements (SLAs) have failed to keep pace with market growth, and there is little standardization. Find out which SLAs should be included in your agreement and which are negotiable.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • The SLAs in Your SaaS Contract Must Incorporate Service Levels Key for Your Organization
  • Negotiate Escalating Service Credits Should the SaaS Vendor Consistently Miss Service-Level Targets, Along With the Right to Terminate
  • Incorporate a Service-Level Reporting Process in the Contract, and Ensure Proactive Alerting

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