Evolution of features and updates: what can the SaaS company do?

SaaS companies are constantly evolving their software. Updates, new features, bug fixes: these changes are essential to maintain the quality of service. But how far can a SaaS companymodify its SaaS during the contract without the customer's agreement?

The principle: the SaaS service is scalable

SaaS is based on an evolving model. The publisher is constantly improving its software to meet market needs, strengthen security or comply with regulatory changes. Customers benefit from it without intervention on their part. However, these changes can also worry them, especially if they impact their uses, cause a loss of functionalities or disrupt integration with other tools. This flexibility is an asset, but it must be managed.

The SaaS modification is limited by the contract

The contract defines the scope of possible changes. Several scenarios exist:

• Technical updates and fixes : they are generally included in the service and do not require specific agreement from the customer.
• New features added : if they do not change the use of the service, the publisher can freely integrate them.
• Modifying existing features : this is where risks appear. A major change can impact customer workflow, integration with other tools, and generate unexpected costs, especially in terms of training, process adaptation, or compatibility with third-party solutions. Changes can also have an impact on SaaS security.

Clauses to be provided to regulate SaaS changes

To avoid any dispute, the contract must specify:

• The scope of updates : what developments are covered by the contract?
• Customer information : does the publisher have to notify changes? With what notice?
• The customer's right to object : can he refuse certain changes?
• The consequences in case of disagreement : is a cancellation possible if the customer feels that the service is no longer in line with his needs?

Customer rights: can he oppose an update to the SaaS?

In the absence of a specific clause, the customer cannot object to current updates. But if a major modification impacts the use of SaaS and in particular its security or functionalities, it may invoke a contractual breach. Some contracts provide for an option to cancel without penalty in the event of a substantial change.

Best practices for avoiding disputes

• Provide transparent communication : inform customers of future developments and allow them to adapt.
• Limiting disruptive changes : avoid changes that change the user experience or the security of SaaS without an alternative.
• Offer a transition period : give customers time to adapt to new features.
• Provide a right to exit the contract in the event of a change likely to have a negative impact on the customer : the customer must be able to cancel the contract if the change is problematic.

Conclusion

A SaaS must evolve, but this evolution should not create uncertainty for customers. A clear contractual framework and effective communication are essential to avoid tensions. I can help you secure your SaaS contracts and prevent the risks associated with updates.