Cloud Contracts

Negotiating cloud contracts: A new era for CIOs

Grazed from TechTarget. Author: Dina Gerdeman.

As cloud spending grows, providers are easing up on the 'my way or the highway' approach. Here's how to negotiate a cloud contract with terms and conditions that work for your enterprise. CIO Cynthia Nustad remembers the early days of the cloud, when IT didn't have much wiggle room in negotiating cloud contracts.

Seven years ago or so, the vast majority of cloud service providers offered a standard cookie-cutter contract to businesses, said Nustad, CIO at HMS, a healthcare management services company. Many providers balked at accepting any real liability, and they certainly shied away from signing what is known in the healthcare industry as a business associate agreement, which has the provider assuming some shared risk in the event of a data breach...

5 Cloud Contract Traps To Avoid

Grazed from InformationWeek.  Author: Joe Stangenelli.

Going to the cloud makes things easier, right?  Then why is it so complicated?  Cloud computing contracts are often full of traps for the unsuspecting customer -- traps that can compromise data and expose said customer to fines, lawsuits, and other problems.

These traps hurt not just cloud customers but the entire cloud industry. Organizations in highly regulated industries (such as healthcare and finance) are notoriously nephophobic because of the massive legal liabilities they face for data compromises. They fear handing control of their data (let alone encryption keys) to cloud providers -- and often for good reason, unfortunately...

IBM Radically Simplifies Cloud Computing Contracts

Grazed from PRNewsWire.  Author: PR Announcement.

IBM (NYSE: IBM) today announced that it radically simplified and made it easier for customers to enter into cloud computing services agreements by creating a standard, two-page agreement to replace longer, more complex contracts that typically required long negotiations and reviews before a deal was signed. In comparison, IBM's cloud competitors require customers to review and commit to more complex contracts that commonly are at least five times longer and also incorporate terms and conditions from other websites.

In recognition of this achievement, IBM received the 2014 Innovation Award for Operational Improvement from the International Association for Contract and Commercial Management (IACCM) for boldly and rapidly transforming its cloud computing contract process – an achievement that significantly improved the company's ability to quickly serve cloud computing clients around the world...

The Least You Need To Know About Cloud Service-Level Agreements

Grazed from Business2Community. Author: Esther Schindler.

Do service-level agreements (SLAs) scare you? SLAs are often (and unfortunately) misconstrued as unattainable goals levied on system owners because of fancy dreams that organizations would like to have their customers experience. But that’s not the case. In this article, I explain the basics of SLAs, and what to look for as you and your service provider design a SLA to put in place.

An SLA does just what it hints at: It defines the service being offered and agreed-to by everyone concerned. The document describing an SLA covers particulars such as the level of service that customers expect, the metrics for measuring “enoughness” of the service, and the remedial course of action in the event that the service is not met...

Managing Contractual Risk in Cloud Contracts (Part 2)

Grazed from CloudComputingAdmin. Author: Ricky M. & Monique L. Magalhaes.

In the previous article we covered SLA, and penalties and how customers should carefully structure these to match their requirements. In this second article in the series we will cover additional best practices that sometimes are overlooked or written into the contract by the supplier, to the service provider’s advantage. If you would like to read the first part in this article series please go to Managing Contractual Risk in Cloud Contracts (Part 1).

Where is my data?

1. Data control and regulation - data security, privacy and integrity. Cloud contracts often have vague terms regarding the maintenance of data confidentiality, reliability and recovery, making it difficult to manage risk. There is no consensus as to how obligations to security services should be defined within a cloud contract and thus providers commit to as little as possible...

Managing Contractual Risk in Cloud Contracts (Part 1)

Grazed from CloudComputingAdmin. Author: Ricky M. & Monique L. Magalhaes.

In this two part article we will look at contractual terms in cloud services contracts and issues for consideration, to reduce risk. If you would like to be notified of when Ricky & Monique Magalhaes release the next part in this article series please sign up to our Real Time Article Update newsletter.

Due diligence procedures should not be overlooked when selecting a cloud provider. Cloud computing risks can be identified, managed and even reduced through thorough scrutiny of the services contracts to ensure the appropriate contract assurances and operations best practices are in place. Contracts for cloud services vary, from ‘one-fit-all’ solution contract or a multi-layered services agreement...

MSPAlliance To Address Cloud Tax, Finance, Contracts, Fundraising, and MSP Sales Issues at MSPWorld 2014 in Orlando

Grazed from MSPWorld.  Author: PR Announcement.

World’s Premier Cloud Computing and Managed Services Event Will Focus on Fundamentals and Best Practice for Growth.

 Chico, CA & Orlando, FL (March 12, 2014) The International Association of Cloud and Managed Service Providers, (@MSPAlliance), has announced that this year’s MSPWorld® Spring 2014 conference agenda will predominantly feature sessions designed to help Managed Services Providers build and run better Managed Services practices as well as provide them with practical instructions on how to achieve a more strategic, efficient and profitable business. 

MSPWorld, which convenes executives and industry leaders from around the world, will take place at the Orland World Center Marriott in Orlando, FL, March 26-28, 2014 (

A checklist for negotiating government cloud service contracts

Grazed from FierceCIO. Author: David Weldon.

Government agencies at the federal and state level are lured to cloud computing by the promise of cost savings and expanded services. But there are also risks associated with moving operations and applications to the cloud. A recent report by researchers at the University of North Carolina at Chapel Hill looks at contracting issues that government agencies face with adopting cloud services. The report was written for the IBM Center for the Business of Government.

"As with any form of government contracting, there are risks to be considered," notes an article at Governing. "Do governments lose control over their data? Do they risk losing access to it? Are they locked into a single vendor? The key to success is writing and negotiating a strong contract."...

$1.3 Billion Cloud Computing Service Delivery Deal Struck Between IBM, Dexia and Other European Financial Institutes

Grazed from GreatResponder.  Author: Maria Dehn.

IBM (NYSE:IBM) succeeded in getting the contract for managing the IT infrastructure of many financial institutes in Europe including Dexia (EBR:DEXB). IBM will manage the IT infrastructure of these companies and will migrate the services in the cloud to pave the way for cloud based services of these financial organizations across Europe. – This announcement was made public by IBM through a statement. The statement says that IBM will take charge of the IT infrastructure of many financial institutes operating in the European region to manage and transform it into the cloud based services. In this statement, General Manager Strategic Outsourcing at IBM Europe region Bart Van Den Daele elaborated the deal that “Our integrated transformational approach, the introduction of new and innovative technologies and solutions, like the cloud and analytics and our expertise in the financial sector will enable these customers to differentiate themselves in an accelerated way versus their  competitors in their respective markets”...

8 sure-fire ways to screw up a cloud contract

Grazed from InfoWorld. Author: Robert L. Mitchell.

Something happened on the way to the cloud: Too many business customers got burned by bad contracts. It's not that cloud services can't deliver value. But in the rush to the cloud, enterprises often end up stuck with contracts that don't fully meet the business's needs, lack accountability and cost considerably more than anticipated.

There are several reasons for that, say people who make their living studying licensing issues and advising businesses on contract negotiations. Among other things, seasoned veterans of on-premises software licensing may mistakenly assume that cloud services contracts are just another variation on the same theme...