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RightNow rewrites SaaS contract rules

Software as a service (SaaS) company RightNow has changed its contracts in a bid to make it easier for businesses to buy its services.

The company has unveiled a Cloud Challenge, which offers flexible contracts, renewable annually with prices fixed for at least five years.

Ray Wang, a partner at strategy consulting firm Altimeter Group, published a "Bill of Rights for users of SaaS in October.

RightNow is among the first providers to take on Wang's recommendations on SaaS contracts.

"We are challenging the industry to finally deliver on the full promise of the cloud," said Greg Gianforte, chief executive at RightNow.

RightNow's promise

• No shelfware - clients should be able to buy only what they need and still get long-term pricing certainty.

• Minimum five-year pricing certainty - clients should get long-term fixed and transparent pricing without long-term lock-ins.

• No long-term contract lock-ins - clients should be able to walk away from contracts if vendors are not delivering value.

• No-haggle flex up/down - clients should be able to easily adjust seats, capacity or even product modules up - or down - to meet their changing business requirements.

• "Roll-over" usage - clients should be able to adjust for seasonality without having to purchase capacity for peak usage that then sits idle most of the year.

• Cash service credits - clients should receive a cash reimbursement if a supplier fails to meet its service commitments.


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