Executive Briefings

Forecast Is for Stormy Weather: How to Get Out of Cloud, SaaS Contracts

One of the most common mistakes that companies make when they enter into cloud and SaaS contracts is failing to negotiate exits from the contract as fully as they negotiate entries.

This is natural. Everyone entering into the contract is enthusiastic and wants to succeed. No one foresees a need to terminate the relationship, and there is the human tendency not to even want to address this.

Nevertheless, companies are ahead in the game if they take time to carefully define their exit strategies with their new vendors before they enter into any agreement.

For one thing, read the vendor's termination clause. If you don't agree with it, amend it. Termination clauses for many cloud services contracts are usually 30 to 90 days advance written notice. Make sure that this termination clause is present in the vendor contract, and if it isn't, add your own.

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Keywords: Cloud, SaaS & On-Demand Systems, Technology, Legal, Govt. & Regulatory Issues, Supply Chain Security & Risk Mgmt, Supply Chain Analysis & Consulting, Global Supply Chain Management, Contract Termination Clause, Saas Lawsuits, Cloud Litigation

This is natural. Everyone entering into the contract is enthusiastic and wants to succeed. No one foresees a need to terminate the relationship, and there is the human tendency not to even want to address this.

Nevertheless, companies are ahead in the game if they take time to carefully define their exit strategies with their new vendors before they enter into any agreement.

For one thing, read the vendor's termination clause. If you don't agree with it, amend it. Termination clauses for many cloud services contracts are usually 30 to 90 days advance written notice. Make sure that this termination clause is present in the vendor contract, and if it isn't, add your own.

Read Full Article


Keywords: Cloud, SaaS & On-Demand Systems, Technology, Legal, Govt. & Regulatory Issues, Supply Chain Security & Risk Mgmt, Supply Chain Analysis & Consulting, Global Supply Chain Management, Contract Termination Clause, Saas Lawsuits, Cloud Litigation