UpCounsel accepts only the top 5 percent of lawyers to its site. If you need help with a SaaS OEM agreement, you can post your legal need on UpCounsel's marketplace. You may hear this referred to as an affiliate agreement, but referral agreement is really more accurate. The SaaS vendor is the one who sets the pricing, not the party who referred the lead. If a deal is reached, the SaaS vendor pays the referral party a percentage of the contract for a stated period. The reseller is usually the one who is providing training, level one support, and implementation services, although it depends on the SaaS vendor's business operation model.Ī SaaS referral agreement is one where the referring business introduces or “refers” brand-new leads to the vendor. The vendor determines the price the reseller will pay, and then the reseller comes up with the price that the customer will pay. SaaS reseller agreements are used in situations where the reseller plans to resell the SaaS vendor's solution and collects the money from the customer directly. A VAR can white-label the hardware products they are sourcing from various vendors, which means they resemble downstream OEMs.
#IS TRANSMIT 5 AN SAAS SOFTWARE#
However, OEMs can serve as VARs if they bundle third-party software and hardware parts along with building their own intellectual property into the products they are selling. The label “OEM” is often connected to large, name-brand hardware companies and marketers who customize the hardware for their own markets, whereas VAR, or Value-Added Reseller, is often defined as selling a larger information technology solution. There is some overlap between OEM and VAR, and the lines between the two can be blurred to some degree. There are third-party applications and operating system software that are preinstalled on items such as: There are some software companies that offer OEM versions of their products to smaller systems builders, or bigger OEM hardware companies, who will then incorporate the product into their own line. Brand-name OEMs may even develop relationships with OEM hardware companies who are in the same supply chain. Some component suppliers may offer OEM products in addition to retail versions. These can be specific companies such as Dell or Lenovo who buy components from businesses and sell entire systems under their own brand label. The term OEM hardware can take on several different meanings. It can be done through electronic means such as an e-mail or via hard copy. Transmit: Transmission is how the processed or source document is delivered to the customer.Source document: The initial document before the software does any processing.Processed document: Any document the software has manipulated or converted.Public use: Available to an end user by paying a fee, or it may be free.Internal use: Solution is only accessed by people who work for the customer.This software or website interacts indirectly or directly with the vendor software.
End-user: The person who interacts with the solution or application, be it indirectly and directly.Customer: The person who has the rights to use the software or application.It's important to start by defining some standard SaaS terms you'll see used: One business may be acting as an OEM, and at the same time, sell to other OEMs. It's not uncommon for OEM relationships to overlap. Now, OEM can describe a variety of businesses and their relationships in a convoluted, information technology supply chain. The term has evolved from primarily meaning a company that originally built a product, which was then sold to others who could rebrand and sell it. Information technology component makers.
#IS TRANSMIT 5 AN SAAS SERIES#
It's a broad term used to describe a series of relationships between: OEM stands for original equipment manufacturer. There are some instances where an OEM company will also commit to additional items, such as training a set percentage of its employees or agreeing to a minimum spend over a certain period. The OEM business determines the pricing, and the customer will then pay that predetermined amount for the SaaS solution. SaaS Reseller and Referral AgreementsĪ SaaS OEM agreement is applicable in situations where the SaaS solution is rebranded for the OEM business and where an OEM company is responsible for providing additional services such as training, implementation, and level one support.
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