How to manage contractual risks in cloud computing

Grazed from ZDNet. Author: Ryan Huang.

There will be practical and commercial risks when choosing a cloud service, but these can be mitigated through due diligence by focusing on the service contract. Firstly, according to Rob Bratby, managing partner at law firm Olswang Asia, the business must understand what it needs and what it will get from the cloud service. Depending on the complexity and value of the services, businesses may prepare their own service description or start with the vendor’s version.

Ultimately the service description should comprehensively set out the business needs. "If it doesn’t, it must be challenged and any inadequacies should be dealt with. If this isn’t done, the risk is that the service contract for cloud services that may prove to be lacking later down the line. The same goes for pricing, service levels and service credits, rights to exit, rights to change the services, security plans and standards, disaster recovery arrangements and governance arrangements," added Bratby…

At this stage, subject matter experts, commercial leaders and lawyers should be roped in to help with the review, he advised. Second, the service contract must enable the business to comply with its own obligations, be they contractual, regulatory and legal, according to the lawyer…

Read more from the source @ http://www.zdnet.com/how-to-manage-contractual-risks-in-cloud-computing-7000027568/#ftag=RSS14dc6a9

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