SaaS/PaaS/all the aaS
Cloud computing service models A.K.A ‘on-demand access’ A.K.A ‘as a service’ has become a part of our daily lives (think Microsoft Office 365, Gmail, Amazon Web Services, Netflix). 'As a service' refers to the way the IT asset is consumed - and to the essential difference between cloud computing and traditional IT.
In traditional IT, you consume IT assets - hardware, system software, development tools, applications - by purchasing them, installing them, managing them, and maintaining them in your own on-site data centre (computer in the case of most households). In cloud computing, the cloud service provider owns, manages, and maintains the IT assets; you consume them via an internet connection, and pay for them on a subscription or pay-as-you-go basis. Typically, the service provider ensures a level of availability, performance, and security as part of a service level agreement. Customers can add more users and data storage on demand at additional cost.
The three most popular types are:
IaaS, infrastructure as a service: cloud-hosted physical and virtual servers, storage and networking (i.e. the backend IT infrastructure for running applications and workloads in the cloud) e.g. Amazon Web Services, Microsoft Azure and Google Compute Engine.
PaaS, platform as a service: a complete, ready-to-use, cloud-hosted platform for developing, running, maintaining, and managing applications e.g. Google App Engine, Magento Commerce.
SaaS, software as a service: a ready-to-use, cloud-hosted application software e.g. Microsoft Office365, Gmail, Slack, Netflix.
What should you be thinking about as a supplier?
As an IaaS, PaaS or SaaS supplier you need to address key legal, technical and commercial considerations. It is important to consider protection of the intellectual property rights of your product, managing data protection obligations to your customers, navigating regulatory compliance for your service, and cementing contractual obligations with buyers and third-party vendors.
What should you be thinking about as a customer?
IaaS, PaaS and SaaS products can propel your business forward, however, they are an investment that requires thought as it has associated risks. For example, which protections (if any) do you have in the event of a system failure? Under which circumstances can you use the product? What degree of ownership do you have over material made with these products? aaS contracts are mostly written in favour of the supplier - which is why it’s even more crucial that you consult legal counsel before signing the dotted line.
How can we help?
We specialise in providing cost-effective legal solutions clearing your path to success, which means our bread and butter lies in crafting, reviewing, and dissecting commercial contracts. From T&Cs to aaS agreements and commercial negotiations, we support the likes of Onfido, Multiverse, and Truelayer - ensuring they can build, break, or bolster their commercial relationships.
In need of support from commercial contract lawyers in the UK? Get in touch with our commercial contract team.
How to get started
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