The Do's and Don'ts of Cloud Contracts

Cloud computing is the storage of data on remote computer servers and the sharing and transmittal of such information by way of the internet.

Use of the cloud enables both businesses and casual users to maintain as much or as little electronic data as they wish on a third party's mainframes without the need for or the expense of having to buy and maintain their own hardware systems.

The cloud's economic benefits are clear. Still, clouds can be a legal minefield for companies and their counsel. Data breaches, hosting of illegal content, and inaccessibility of critical business information are just a few examples of turbulent situations cloud users can face.

Given the risks and potential rewards of the cloud, all in-house counsel need to consider the following guidelines before entering into a cloud provider contract.

EVALUATE YOUR BUSINESS NEEDS BEFORE NEGOTIATING A CLOUD

It is critical to identify your business needs to successfully negotiate an appropriate cloud computing contract. First, consider whether the contract should be tailored, as opposed to being a standard boilerplate form. If you want to have routine, non-sensitive data serviced, it often makes sense to accept a standard, less onerous form of agreement, provided the indemnities and protections are appropriate.

To Continue Reading: Click Here
-----------------------------------------
Source: law.com
By: Rick Bortnick and Nicole Moody