SaaS Due Diligence Checklist

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SaaS Due Diligence Checklist Company Overview: 1. List business name, DBA names and web addresses: 2. Headquarters address: 3. Other locations and purposes: 4. List owners with their equity %: 5. List senior managers, their titles and geographic location: 6. List top selling products and services along with their sales in the last year. 7. What is number of paying customers you served in each of the last 12 months, one time revenue customers and recurring revenue customers: 8. Estimate the geographic location these customers are in (% in each country or continent): 9. Estimate the sizes of the customers. What % are single users, small businesses (2-25 users), medium businesses (26-100 users), large businesses (greater than 100 users). 10. What types of hosted Functional Applications do you offer? Please check all that apply, and provide est. 2012 sales if available. Hosted Application Service est. 2012 sales ($000) ERP / Full Suites (i.e., Oracle) Finance / Accounting Payroll / HR Order Processing & Catalogs Supply Chain Management Procurement Industry or Specialty Portals What are your typical Contract Terms for these services? (for example: 1-year contract, paid monthly, exit penalty, non-refundable startup) 11. What types of hosted Technical & Infrastructure applications do you offer? Please check all that apply, and provide est. 2012 sales if available.

Hosted Technical Service est. 2012 sales ($000) Web Site Hosting Email Hosting Email Filtering (Spam Mgmt, etc.) Internet Access (ISP) Network Management (LAN/WAN) Network Security (firewall, et al) Portal Platform (EIP, etc.) What are your typical Contract Terms for these services? (for example: 1-year contract, paid monthly, exit penalty, non-refundable startup)

12. What Platform Technologies do you utilize and support? Platform Technology Network Hardware (routers, firewalls, switches, etc.) Server Operating System (e.g., Unix, Windows, other) Storage Management Hardware & Software (e.g., Dell, EMC) Application Development Standard (e.g., J2EE,.NET) Application Server (e.g., JBoss) Data Base Management (e.g., MS SQL Server, Oracle, other) Web Application Development (e.g., Cold Fusion) Web Content Management (e.g.,, Interwoven, Adobe) Email Server & Management Web Server (e.g., Apache, Microsoft IIS) Application Integration Tools (e.g., Webmethods, Tibco, Vitria) Web Services Tools Portal Builder / EIP platform User Web Page Development Tools Vendors & Products Used 13. What types of Consulting Services do you currently offer? Please check all that apply, and provide est. 2012 sales if available. Consulting Service est. 2012 sales ($000) Network Design & Install Network Management

Customer Training Web Site Development Application Setup/Configuration Content Services (eg, catalog setup) What are your typical Fees and Terms for these services? (for example: $75 per hour, 1 day minimum, plus expenses)

14. What Licensed Software Applications do you sell? Please list your top licensed software products and provide est. 2012 sales if available. Rank Name of Licensed Software Product est. 2012 sales ($000) 1 2 3 4 5 15. What OTHER services or products do you offer? Rank Name of Product or Service est. 2012 sales ($000) 1 2 3 4 5 What are your typical Fees and Terms for these services? (for example: 1-year services contract, paid monthly, exit penalty, nonrefundable startup) Financial Analysis 1. End of year Balance sheet for each of the last 3 years 2. Monthly Income statements for the last 36 months 3. Are there any First Right of Refusals? 4. Are there any equity transfer agreements in place (buybacks or issuances)? Service and Operational Questions 1. Is there a working demo of each software I can try? If not can you provide one? 2. How does the functionality compare to similar software programs that can be run from a company owned network and/or desktop?

3. Are there any limitations on who can use the SaaS? 4. Must you use certain types or versions of browsers? 5. Does the SaaS require installation of any plugins or other software to operate correctly? 6. Is the SaaS hardware independent (important for Mac users)? 7. Does the company have a support or customer forum? 8. Which data centers does the SaaS use? List each with investment and purpose (note if DC is company owned). 9. Does the company have a list of references? 10. What warranties are provided (and not provided)? 11. What disclaimers and limitations of liability are in the contract? 12. Is there a SLA specifying uptime, response times, help desk and escalation procedures, and other technical requirements in detail? 13. Is there a single point of contact to handle each account? 14. Does the contract clearly spell out how and in what format customer data will be returned if the customer requests or the contract is terminated? 15. Does the contract provide that the company will provide reasonable transition services in case the customer moves to another SaaS of decides to move the data back in-house? 16. What training services are provided and at what price? Tech Support 1. What are the options for tech support? 2. Are there different costs for different levels of support? 3. Is tech support handled by the company or outsourced? If outsourced, by which vendor? 4. Does the company provide regular usage, performance, audit or other reports? Pricing Overview 1. List the different pricing plans you offer and how features vary under different plans? 2. Is the pricing fixed or are there incremental charges for storage, bandwidth, backup, restoring data, # of users, other? 3. How do you bill customers? 4. Are there long-term discounts? 5. Are there termination fees/penalties? 6. Can customers change the plans or any level of service within a plan without a fee/cost?

Company News, Certifications, Qualifications etc. 1. Provide a list of news stories/articles. 2. What certifications and qualifications does the company have (private and governmental)? 3. Are the vendor s services in the U.S. or Canada or elsewhere in the world, with regards to PIPEDA, The Sarbanes-Oxley Act, or Homeland Security Act? 4.