This clause promises how quickly the software company will restore service if something catastrophic happens (a data center fire, a major cyberattack, etc.). It's usually expressed as "Recovery Time Objective" or RTO—for example, "service will be restored within 4 hours." It matters because if your business depends on this software and it's down for a day, you lose money. Under UK and US law, if the company promises 4-hour recovery and takes 24 hours, they've breached the contract and may owe you damages. However, many contracts limit what they'll pay you even if they fail, so the promise is only as good as the penalty clause backing it up.
Be realistic about what you actually need—4-hour recovery is expensive to maintain and costs more, so only demand it if your business truly can't function without the software. Get the company to commit this promise in writing with specific metrics (not vague language like "we'll try our best"). Crucially, negotiate what happens if they miss the deadline—do they owe you a refund, service credits, or can you cancel without penalty? ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause promises how quickly the software company will restore service if something catastrophic happens (a data center fire, a major cyberattack, etc.).
Why should I care about this clause?
It's usually expressed as "Recovery Time Objective" or RTO—for example, "service will be restored within 4 hours." It matters because if your business depends on this software and it's down for a day, you lose money.
What are my options?
Under UK and US law, if the company promises 4-hour recovery and takes 24 hours, they've breached the contract and may owe you damages.
How does this affect small businesses?
However, many contracts limit what they'll pay you even if they fail, so the promise is only as good as the penalty clause backing it up.