Key considerations in cloud contracting when dealing with outside providers
October 9, 2014
Grazed from InsideCounsel. Author: Linda L. Rhodes.
The economics of cloud commuting are compelling, and cloud solutions offer customers the flexibility to rapidly provision and release computing elements. As a result, use of cloud services is clearly growing. However, buying cloud services is different from buying traditional outsourced services. Cloud providers are able to offer low cost, flexible solutions because they standardize their offerings for multiple customers.
Accordingly, cloud providers are less likely than traditional outsource providers to adapt their solutions to the customer’s needs or negotiate contract terms to meet the customer’s requirements. The key to successful cloud computing is to find the right fit between the cloud solution and your business needs…
Approach to cloud services
You need to carefully select the cloud solution to meet your needs and manage the associated risks. The following are important steps in that process.
Know your requirements: You should start with an understanding of the attributes of the outsourced function. How critical are the outsourced services to your business? Is the data involved personal data or competitively sensitive? These attributes will drive important requirements for the cloud services…
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