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SIIA White Paper Details SaaS SLA Requirements

Setting Appropriate Expectations on Both Sides Ensures Success

WASHINGTON, Feb. 22 /PRNewswire/ -- The Software & Information Industry Association, the principal trade association for the software and digital information industry, today announced the release of a white paper produced by its Software as a Service Executive Council that explains how the evolution of the software as a service (SaaS) model creates the need for service level agreements (SLAs) between SaaS providers and their customers.

The shift to a services model has far-reaching impact that is not obvious to the vast majority of software providers or consumers. The paper examines the different operational cultures required for SaaS companies to be successful. It then explains how the SLA is used as a tool to set appropriate expectations on issues such as uptime, response time and performance -- for both the provider and the customer. Prior to the SaaS model, there was no legal agreement that bound the software provider to any consequences for failure to deliver an expected service. For the first time, customers have the power to stop paying for software that they believe fails to meet their expectations.

The paper also contains a model Service Level Agreement that is a long- time goal of many within the industry. A model SLA allows vendors to provide customers with an "industry-approved" agreement that guards both parties' interest.

For the service provider, the SLA can be used to improve both customer relations and budget negotiations. It can even be used as a service differentiator by offering enhanced service levels to compete with other SaaS vendors. For the consumer, it is a type of insurance policy used to communicate requirements and attain compensation in the event that the service level drops from the agreed upon standard.

Written by Helen Eliadis, Chief Financial Officer at L2, Inc. and Adrian Rand, VP Client Care at NaviSite, the paper is the result of several months of work by the SaaS Executive Council's Legal & Contractual Committee.

"The SaaS Executive Council continues to educate the market and this white paper specifically focuses on how the SaaS model requires formalized commitments between provider and consumer," said David C. Thomas, Executive Director of the SIIA Software Division. "It is part of the continuing story of how the SaaS model requires new and different operational methods compared to traditional software."

The paper is available to the press from SIIA in PDF and may be downloaded by SIIA members from the SaaS Executive Council pages at

About SIIA

The Software & Information Industry Association (SIIA) is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to more than 800 leading software and information companies. For further information, visit

About NaviSite

With more than a decade of experience, NaviSite is the industry's only vendor that can deliver solutions for the complete spectrum of application and technology services. The company simplifies how organizations approach technology through a new service architecture, designed specifically to reduce the complexity associated with managing multiple applications, IT infrastructure and content delivery. Headquartered in Andover, Mass., NaviSite has offices worldwide. More information is available at

About L2

L2 is the provider of Fuse(TM), a next generation campaign management Software as a Service (SaaS) for highly personalized marketing campaigns and collateral. Fuse increases the success rate of marketing campaigns by leveraging personalized client data and integrating campaign delivery through print, email, personalized URLs (PURLs) and custom landing pages. L2 has been serving Fortune 1000 companies since 2001 and is headquartered in Palo Alto, California. L2 has customers in the industries of healthcare, banking and financial services, insurance, government, travel and leisure. For more information, please visit or call (650) 944-8571.

Software & Information Industry Association

CONTACT: David Thomas, of SIIA, +1-408-884-3962, [email protected]; Ben
Farrell of The Horn Group, +1-540-290-9602, [email protected], for SIIA

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