Wednesday, February 16, 2011

Cloud computing contracts: tread carefully

A panel of lawyers at RSA Conference 2011 on Tuesday told attendees to be careful when negotiating with cloud computing service providers, but also offered a reality check on the odds of service providers agreeing to an array of provisions in cloud computing contracts for data security.

Organizations shouldn't be clicking through a service provider contract online without negotiating it, said Scott Blackmer, a founding partner of the InfoLawGroup LLP. Cloud services need to be subjected to careful due diligence and governance systems; if they're not, "it's likely going to haunt you," he said.

"Legal and compliance risks can't be shifted to the cloud vendor," said Thomas Jackson, a partner and chair of the technology practice group at New York-based Phillips Nizer LLP. The ultimate responsibility remains with the enterprise that's contracting for the cloud services, he said.

The provisioning of cloud services is becoming a competitive environment, which gives organizations a basis for negotiating key contract provisions, Nizer said. He listed several critical provisions for cloud computing contracts, including:

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Source: searchcloudsecurity.techtarget.com
By: Marcia Savage

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