Yes, that clause/phrase restricts the company's rights with respect to their license to your data. Essentially, a clause like that is necessary for users to interact with the service. Makes sense when you think about it, how can they provide service if they can't use the data you provide them?

It's a pretty typical clause you'll see in most SaaS policies.

Source: I work for a SaaS, but I am not a lawyer, caveat emptor.

I want to pay for their product, but not enough that I have to ask my lawyer about the language. I did see that one of the features of the enterprise plan is custom terms, but that's not the plan I'm interested in.

How do you use other Saas products or is this the first one you consider using ?