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Practice area · SaaS & Cloud

SaaS and Cloud Contracts: German and EU Law

SaaS and cloud contracts determine whether your data stays available, who is liable for outages and how you can switch providers. We build contract frameworks for providers and review terms for customers before signature.

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SaaS and Cloud Contracts – horak Rechtsanwälte
German courts generally treat SaaS as a rental contract.
Switching rules of the EU Data Act apply since 12 September 2025.
A GDPR data processing agreement (Art. 28) is mandatory for personal data.

Key points in SaaS agreements

  • Scope and changes: what is included, and may the provider change or remove features unilaterally?
  • Service levels: availability, maintenance windows, support response times and service credits.
  • Data: ownership, storage location, use for analytics or AI training.
  • Data protection and security: data processing agreement, sub-processors, international transfers.
  • Exit: termination, export in usable formats and switching assistance.

The EU Data Act

Since 12 September 2025, the EU Data Act requires providers of data processing services – including SaaS, PaaS and IaaS – to enable customers to switch provider or move data to their own infrastructure. Contracts must regulate notice periods, export formats and assistance. Switching charges are being phased out and are generally prohibited from 12 January 2027.

Case studies: SaaS & Cloud

01

SaaS start-up building its contract framework

SituationA B2B platform used US-style terms that German enterprise customers rejected.
Our approachWe created a modular set of terms under German law: main terms, service description, SLA, data processing agreement and a Data-Act-compliant exit section.
OutcomeEnterprise sales cycles became shorter because standard requests were already addressed.
02

Customer reviewing a cloud ERP contract

SituationThe provider reserved the right to raise prices at will and to delete all data immediately after termination.
Our approachWe negotiated a price adjustment cap, an export period with defined formats and switching assistance.
OutcomeThe customer gained cost certainty and a documented exit path.
03

Three-day platform outage

SituationThe provider relied on terms excluding any liability for availability.
Our approachWe assessed the clause under German rental and standard-terms law and negotiated compensation.
OutcomeThe customer received credits worth several monthly fees and a binding SLA.

The examples are typical, anonymised and simplified scenarios from our practice. Every case is different – the outcome depends on the individual circumstances.

Our services: SaaS & Cloud

  • SaaS terms for providers
  • Review of cloud contracts for customers
  • SLA and support terms
  • GDPR data processing and transfers
  • EU Data Act compliance
  • Disputes over outages and data loss

How we work with you

ContactBy phone, email or online booking. If deadlines are running, please call us directly – urgent matters are reviewed immediately.
Initial assessmentWe review contracts, letters and technical documents and tell you openly where the risks and opportunities lie.
ProposalYou receive a clear plan with transparent costs – as a fixed fee or budget if you wish.
ImplementationWe negotiate, draft and enforce – out of court, in arbitration or before the courts.

FAQ: SaaS & Cloud

Does the Data Act apply to existing cloud contracts?

Yes, its switching rules generally also cover existing contracts. Providers must enable switching and data export; obstacles and excessive switching charges are not permitted.

Do I need a data processing agreement with my SaaS provider?

Yes, if the provider processes personal data on your behalf. It must contain the minimum content of Article 28 GDPR.

What happens to my data if the provider becomes insolvent?

Without contractual safeguards, access can be lost quickly. Regular exports, a right to return of data in a usable format and escrow solutions for critical applications help.

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