Though many assume that a licensing agreement and a SaaS agreement (which contains the SLA) are the same things, there are a few key differences between the two.  A licensing agreement is generally related to on-premises software, where a vendor may deliver and install the related hardware. In most cases, a licensing agreement is renewed on a month-to-month basis.  The licensing agreement is what gives your business the right to use the software.  SaaS agreements generally relate to cloud service software, and focuses mostly on the specific services the product provides to the customer.