NEGOTIATING CLOUD CONTRACTS: LOOKING AT CLOUDS FROM BOTH SIDES NOW

NEGOTIATING CLOUD CONTRACTS: LOOKING AT CLOUDS FROM BOTH SIDES NOW

images (13)W. Kuan Hon,Christopher Millard & Ian Walde
CITE AS: 16 STAN. TECH. L. REV. 79 (2012)
http://stlr.stanford.edu/pdf/cloudcontracts.pdf

ABSTRACT
Contract terms for cloud computing services are evolving,driven by users’attempts to negotiate providers’standard terms to make them more suitable for their requirements,as well as market developments, particularly among cloud integrators.This Article,drawing on sources including interviews with cloud computing providers,users and other market actors,is the first in-depth research into how cloud contracts are negotiated.In particular,we have focused on instances where users have requested changes to providers’standard terms,and the extent to which providers agreed to those changes.We have found that the terms that generated the most negotiation were provider liability,service level agreements,data protection and security,termination rights,unilateral amendments to service features,and intellectual property rights.Changes to providers’standard terms are likely to filter down from large deals where users have negotiated amendments,and filter up from regulatory action affecting the consumer market.This Article suggests a multiplicity of approaches are emerging,rather than a de facto‘cloud’ model,with market participants developing a range of cloud services with different contractual terms,priced at different levels,and embracing standards and certifications that aid legal certainty and compliance,particularly for small incorporate cloud computing; those trends include personal cloud, hybrid information technology and cloud computing,cloud-based analytics,in memory computing and integrated technology ecosystems.However,the cloud market is still relatively immature.The state of providers’standard contract terms seems to reflect this.In a 2010 survey of some thirty standard terms of cloud providers,most terms surveyed were found, unsurprisingly,to be weighted in favor of the provider,and many were potentially non-compliant,invalid,or unenforceable in some countries.


NEGOTIATING CLOUD CONTRACTS: LOOKING AT CLOUDS FROM BOTH SIDES NOW

Be the first to comment

Leave a Reply

Tu dirección de correo no será publicada.


*


Google Analytics