SaaS updates: how much freedom does the vendor have?

SaaS vendors continuously evolve their software. Updates, new features, bug fixes: these changes are essential to maintain the quality of the service. But how far can a vendor modify its SaaS during the term of the agreement without the customer’s consent?

The principle: a SaaS service is designed to evolve

SaaS is built on an evolving model. The vendor continuously improves its software to meet market needs, strengthen security or comply with regulatory changes. Customers benefit from these improvements without any action on their part. However, these changes can also raise concerns — particularly if they affect established workflows, result in the removal of features or disrupt integration with other tools. This flexibility is an asset, but it must be properly framed.

The vendor’s right to modify the SaaS is limited by the agreement

The agreement defines the scope of permissible modifications. Several scenarios exist:

• Technical updates and bug fixes: these are generally included in the service and do not require specific customer consent.
• New features: if they do not materially alter the use of the service, the vendor can integrate them freely.
• Modifications to existing features: this is where risk arises. A material change can affect the customer’s workflow, integration with other tools and generate unexpected costs — including training, process adaptation or compatibility issues with third-party solutions. Changes may also affect the security posture of the SaaS.

Key provisions to frame SaaS modifications

To prevent disputes, the agreement should specify:

• The scope of updates: which developments are covered by the agreement?
• Customer notification: must the vendor notify the customer of changes? With what notice period?
• The customer’s right to object: can the customer refuse certain modifications?
• Consequences in the event of disagreement: is termination available if the customer considers the service no longer meets its requirements?

For an overview of the key provisions in a SaaS agreement, see the SaaS contracting guide.

Can the customer oppose an update?

In the absence of a specific provision, the customer cannot object to routine updates. But if a material modification affects the use of the SaaS — particularly its security or core features — the customer may invoke a contractual breach. Some agreements include a right of termination without penalty in the event of a substantial change.

The Data Act also strengthens the customer’s rights regarding data portability when switching providers. If a material modification to the SaaS drives the customer toward exit, their migration rights are now regulated under the Data Act. This is a factor that vendors must integrate into their product evolution strategy.

Best practices to prevent disputes

• Communicate transparently: inform customers of upcoming changes and allow them time to adapt.
• Limit disruptive modifications: avoid changes that fundamentally alter the user experience or the security of the SaaS without offering an alternative.
• Offer a transition period: give customers sufficient time to adjust to new features.
• Provide a termination right in the event of a material change: the customer should be able to terminate if the modification is genuinely problematic.

For further guidance on involving legal from the product development stage, see this dedicated article.

Conclusion

The ability of a SaaS to evolve is an asset, not a risk — provided the agreement clearly defines what the vendor may modify, how the customer is notified, and what exit options are available in the event of disagreement. If you need to review your provisions on this point, book a call.

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