Clear Skies or Stormy Weather for Cloud Computing: Key Issues in Contracting for Cloud Computing Services

Clear Skies or Stormy Weather for Cloud Computing: Key Issues in Contracting for Cloud Computing Services

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There are multiple service models and delivery methods to define “cloud computing” arrangements that outsource computer hardware and software to third-party providers via the Internet. Currently, the standard contracts offered by cloud computing providers are one-sided and service provider-friendly, with little opportunity to change terms or assure meaningful service and compliance levels. This article reviews the risks of cloud computing contracts, and how to mitigate them through appropriate due diligence up front, strong contractual protections that account for higher risk, and continued vigilant governance.

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