SMBs need to consider things like service availability, service level, and data security when reviewing a cloud contract, says an attorney with IT and outsourcing expertise.
If you read your cloud vendor contracts the same way you pore over, say, software licensing deals, you might make a huge mistake.
That's the overarching thing businesses need to bear in mind when signing on with cloud computing vendors, according to Matthew A. Karlyn, a partner at Foley & Lardner. Karlyn's legal work focuses on IT, outsourcing, privacy, security, and information management matters. He notes that traditional contracts for on-premises technology simply don't address the same needs and risks inherent in infrastructure and applications hosted by an offsite vendor. Karlyn said he fields at least a couple calls a week from clients with cloud access, security, or other issues where they believe the vendor is at fault.
"It happens all the time, and the first place we always turn is to the contract," Karlyn said.
Small and midsize businesses are reviewing and signing plenty of those contracts in 2011: $11 billion worth worldwide, according to a current Techaisle estimate. Certainly, consult with your own legal counsel on contract matters. But it's a good idea to have in-house knowledge, too--it can help you develop a sharper vendor selection process, ease fears around moving to the cloud, and ensure productive outcomes from doing so.
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Source: informationweek.com
By: Kevin Casey
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