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There are various issues to consider when setting up user access for your SaaS client. As a SaaS provider, you must be clear on how you will set up an account for your client. This includes who can also gain access. You must ensure you are clear on how the SaaS will work with the client’s users and who will be responsible for the users. To assist, this article will explore:

  • the different types of users;
  • how new users will be set up;
  • who the users are; and
  • who will be responsible for the users.

Different Types of Users

If you provide your SaaS to businesses, they will pay for the platform to allow their business, and potentially other new users to access it. You may allow the business to have a certain number of authorised users who can access the SaaS via their own login details. For example, the employees of the business may be provided with access to the SaaS. In this example, the employees will not be paying for the SaaS. Instead, they will be invited to use it as part of their employment. An ‘invited user’ is generally someone to who the business user of the SaaS wants to grant access in order for them to carry out their role. The business may also want to extend the authorised users to advisors as well. In your SaaS Agreement with your client, you can include the number of authorised users. This means the client is allowed to provide access to these users.

You may have multiple tiers of authorised users. For example, some authorised users might be administrators and others might be regular users. You can include this in your SaaS Agreement with your client. For example, there may be a category of administrators who have certain access, such as reviewing other user’s behaviour and general users who have access to all functions necessary to carry out their tasks and functions.

If your SaaS is only for individuals to use, and not for businesses, then they will be the only user and there will be no authorised users.

How Accounts Are Set Up

There are multiple ways to set up an account for your clients. A relatively common way where businesses want multiple users to have access to the SaaS is that the business has one account and invites individual users to use the SaaS. Each individual user will have their own login that is linked to the business’ account. If your business has users that are other businesses, you may want them to have their own business account and agree to your SaaS Agreement.

In your SaaS agreement with your clients, you should include that the agreement also applies to any authorised user. Further, you should specify that the client must ensure their authorised users comply with the SaaS agreement. If you have an end user licence agreement, you may want to include that each authorised user of the business must agree to your end user licence agreement in order to access the SaaS. You can attach it to the SaaS Agreement so your client has a copy of it. You can also require acceptance of the end user licence agreement by the authorised user themself. To do so, you can incorporate it into the login process. 

Who Are the Users?

If you are allowing clients to invite users to access the SaaS, users can be anyone. This includes contractors, clients, employees, contractors and advisors. If you want to restrict the client from inviting certain users to use the SaaS it is best to be clear about this and outline it in your agreement with the client, or ensure you have the technological possibility to restrict access to the SaaS. Where clients are providing access to users that are not part of the client’s business, like contractors and clients, you want to ensure it is clear who is responsible for those users, particularly if you have very limited control over what the end users are doing.

Who Will Be Responsible for the Users?

The client should ideally be responsible for users and all of their actions and omissions. If your client does not have a lot of control over the users it invites to use the SaaS, for example, if they provide access to third parties such as advisors, they may want the advisor to agree to terms and conditions (usually the End User Licence Agreement). This ensures the third party has a direct agreement with you.

When a user logs in, ideally they will accept some terms and conditions. Furthermore, businesses will agree to the SaaS Agreement and end-users like employees will agree to an End User Licence Agreement.

Key Takeaways

When setting up your SaaS, it is essential you consider how you will structure your users of the SaaS. Things to consider include:

  • the type of user and their access;
  • account setup;
  • who the users may be; and
  • who will be responsible. 

For assistance with your SaaS agreements, please get in touch with LegalVision’s experienced commercial contract lawyers on 1300 544 755 or fill out the form on this page. 

Frequently Asked Questions

What is a SaaS agreement?

SaaS agreements are for businesses that offer Software as a Service. These agreements should be in place with each customer – which in some cases is a business. SaaS agreements take different forms depending on who your customers are and how your customers access your software.

Why are there multiple users?

If you provide your SaaS to businesses, they will pay for the platform to allow their business, and potentially other users to access it. Business employees may access the SaaS via their own login details. On the contrary, an ‘invited user’ is generally someone to who the business user of the SaaS wants to grant access in order for them to carry out their role. The business may also want to extend the authorised users to advisors as well. In your SaaS Agreement with your client, you can include the number of authorised users that the client may provide access to.

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