Cloud Contracts

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...

Savvis wins federal cloud contract

Grazed from DataCenterDynamics. Author: Editorial Staff.

CenturyLink-owned Savvis has won a cloud hosting contract worth almost US$1.1m over three years from the US Federal Communications Commission (FCC). The order was awarded to Savvis Federal Systems, which will provide managed, scalable public cloud hosting services for, and the commission's other public website domains.

The contract is for Infrastructure-as-a-Service (IaaS) and includes migration of the existing website infrastructure to a CenturyLink cloud data center. Last year, CenturyLink won two task orders to provide private Wide Area Network (WAN) services and Managed Trusted Internet Protocol Services (MTIPS) to the FCC...

IBM Wins Its Largest U.S. Cloud-Computing Contract

Grazed from Sys Con Media. Author: Patrick Burke.

That's one big check for Big Blue. IBM won a federal cloud-computing contract with a maximum value of $1 billion, its largest such agreement with the U.S. government, according to an article on The Interior Department awarded similar, 10-year pacts to nine other suppliers, including Lockheed Martin Corp. (LMT), which also described the agreement as its largest federal cloud contract.

The deals might reach a combined $10 billion, allowing the agency to speed its efforts to move information to the cloud, a Web-based pool of shared resources such as data storage and software. Other U.S. departments may eventually tap the program...

5 ways to take the opaqueness out of cloud contracts

Grazed from ZDNet. Author: Joe McKendrick.

Eight out of 10 enterprise Software-as-a-Service buyers will not be happy with the contracts they sign. And there's good reason for that. That's the prediction from Gartner analyst Alexa Bona, who chides the current state of contracts, which all too often "have ambiguous terms regarding the maintenance of data confidentiality, data integrity and recovery after a data loss incident."

Bona outlines three options enterprise cloud buyers need to exercise every time they cut a cloud agreement:

Bring in third-party verification. SaaS contracts should "allow for an annual security audit and certification by a third party, with an option to terminate the agreement in the event of a security breach if the provider fails on any material measure," Bona advises...

Cloud contracts poor on security, says Gartner

Grazed from ComputerWeekly. Author: Warwick Ashford.

Buyers of commercial cloud services – especially software as a service (SaaS) – are finding security provisions inadequate, according to a report by research firm Gartner. Contracts need more transparency to improve risk management, analysts said, with SaaS contracts often have ambiguous terms regarding data confidentiality, data integrity and recovery after a data breach.

This leads to dissatisfaction among cloud services users and makes it difficult for service providers to manage risk and defend their risk position to auditors and regulators. Up to 80% of IT procurement professionals will remain dissatisfied with SaaS contract language and protections that relate to security for at least the next two years, Gartner predicts. “We continue to see frustration among cloud services users over the form and degree of transparency they obtain from prospective and current service providers,” said Alexa Bona, vice-president at Gartner...