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Service Agreement for Tech Companies

Customer contracts built for SaaS and tech services.

A service agreement for tech companies — SaaS subscription terms, uptime SLAs, data handling provisions, and the liability structure your enterprise customers will expect.

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Customer contracts are where tech companies discover that their template is missing the clauses procurement actually cares about — uptime SLAs, data residency, security commitments, exit data export. This template starts from those table-stakes provisions, then adds the structure to handle them at scale.

Why tech companies need a service agreement

  • Defined uptime SLA matches what enterprise customers will scrutinize during procurement.
  • Data handling provisions (residency, processing, deletion) preempt security review.
  • Liability cap with carve-outs (data breach, IP indemnity) matches industry norms.
  • Subscription, billing, and renewal terms keep recurring revenue clean.

Common scenarios

B2B SaaS subscription contract

Subscription term, billing cadence, uptime SLA, support response, and renewal — sized for self-serve and mid-market customers.

Enterprise master services agreement

Negotiated framework agreement for larger customers, with SOWs for implementation services and customizations.

Pilot or trial agreements

Short-form contract covering 30/60/90-day evaluation with conversion terms and data handling at exit.

Clauses to pay attention to

Subscription term and renewal
Service level agreement (uptime, support)
Data handling, residency, and processing
Limitation of liability with carve-outs
Indemnification (IP, data breach)
Exit data export and deletion

Common questions

What uptime SLA is reasonable?
99.9% ("three nines") is the standard B2B SaaS commitment, with credits as the sole remedy. 99.95% or 99.99% is sometimes negotiated for enterprise customers, with corresponding higher credits. Be careful: real uptime needs to comfortably exceed your SLA — committing to 99.99% when you actually run at 99.9% is a credit-payment problem.
How should we handle data residency requests?
Increasingly common, especially for EU customers under GDPR and customers in regulated industries. The agreement should specify where customer data is processed and stored, what mechanisms cover cross-border transfers (e.g., Standard Contractual Clauses), and how data residency commitments interact with subprocessor changes.
What's the right liability cap structure?
Industry standard is fees paid in the prior 12 months, with carve-outs for data breach, confidentiality breach, and IP indemnity (which are often capped higher or uncapped). Larger enterprise customers will push for higher caps or no carve-outs. Insurance levels often drive what you can actually offer.

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