Auto-Scaling

What are overages in SaaS?

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In SaaS, overages refer to the additional costs or fees that are incurred when a user exceeds the contracted usage limits or terms of their plan. Examples of overages include user overages, storage overages, API usage overages, feature overages and support overages.

What is a break clause?

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A break clause refers to a provision within a SaaS agreement that allows either the customer or the SaaS provider to terminate the contract before the end of the initial term. A break clause will typically set out the conditions or requirements that must be met for either party to exercise their right to terminate an agreement early. For example, a break clause can enable users to cancel their subscription if they are dissatisfied with the service.

What is a Master Service Agreement?

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A Master Service Agreement (MSA) is a contract between two parties, in this case the software provider and the buyer, outlining the terms and conditions of the agreement. It will typically cover pricing, payment terms, service levels, intellectual property rights, confidentiality, liability, termination, and dispute resolution.

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Unlike a service level agreement (SLA) which outlines the specific performance metrics and criteria for the delivery of a particular service, for example uptime guarantees and support response times, an MSA covers the broader terms of the business relationship.

What is a SaaS stack?

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A SaaS stack is a collection of software-as-a-service (SaaS) applications and tools that are used across an organization. While the specific contents of any SaaS stack will vary depending on the nature of the business, it will typically consist of communication, collaboration, sales, marketing, HR, finance and data analytics software.

What is auto-scaling?

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Auto-scaling refers to the automatic adjustment of cloud computing resources based on an organization’s current demand and workload. It dynamically adjusts the allocation of resources to match the evolving requirements of an application or system without the need for manual intervention.

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There are a number of benefits to using auto-scaling, the first being cost efficiency. By ensuring that resources are scaled up or down as and when needed, organizations can avoid over-provisioning and subsequently reduce unnecessary expenses. It also helps maintain consistent performance levels by automatically adding resources during peak demand periods.

What are price uplifts?

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In the context of SaaS, price uplifts refer to an increase in the price of a software subscription. While many software providers will implement price uplifts on an annual basis, typically at the point of renewal, others may review and amend their pricing more frequently, for example on a quarterly basis. It is recommended that buyers negotiate a price uplift cap during the initial contract negotiation stage, placing a limit on the maximum amount the subscription can be increased by within a specified time period.