Cloud computing - some commercial considerations
Cloud computing is said to be the next big thing in the provision of IT services. Put simply, it is the delivery of IT services through the internet, rather than the customer being required to purchase and download software.
Many service providers are likely to be offering their services through cloud computing so businesses purchasing IT services need to be in a position to decide whether this is the best option for the business.
Commercial issues
Some of the commercial issues are as follows:
- The services are not tailored but are a standard package.
- Contracting will be on fixed standard terms with limited warranties etc. It is therefore important to ensure that a legal adviser reviews any terms that you are required to enter into in order to advise you of the risks;
- There is a lack of control over data which can raise data protection issues. With this in mind businesses will need to ensure that they are doing all that they can to ensure that they are complying with data protection laws.
- There is a risk that customers will be locked in without any exit provisions.
- There is a risk of hidden extras that will be charged for.
Before entering into a contract for the purchase of cloud computing services it is important that businesses seek advice so that they are aware of the risks in purchasing the services
If you would like more information or advice on cloud computing, please contact: