Gartner Research

Key Terms to Negotiate in Your Pseudo SaaS or Hosted Software Contract

Published: 21 June 2019

ID: G00404989

Analyst(s): Brett Sparks , Jo Liversidge , Andrew Miljanovski , Claudio Da Rold


Some vendors sell their software as pure SaaS when the hosting is not cloud-based. We define this as “pseudo SaaS,” since it lacks key contractual protections. To mitigate risks, sourcing, procurement and vendor management leaders must use these best practices when negotiating pseudo SaaS contracts.

Table Of Contents
  • Key Challenges



  • Set Out Unambiguous Terms for the Software License or Subscription, Including Any Potential Costs
  • Define Software Implementation and Support Responsibilities Clearly
  • Create Contractual Descriptions of Required Infrastructure Services

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