Cloud Contracts

DISA reaches milestone in quest to manage and negotiate cloud contracts

Grazed from FederalTimes. Author: Nichole Johnson.

The Defense Information Systems Agency is one step closer to standing up cloud broker services for the Defense Department. As DoD’s cloud broker, DISA will manage the use, performance and delivery of cloud services and negotiate contracts between cloud service providers and DoD consumers.

DISA announced Tuesday that it has developed a process for gathering and assessing DoD’s cloud computing requirements, evaluating vendors’ cloud offerings against contract requirements and has created a catalog for cloud services. In a June 2012 memo, DoD Chief Information Officer Teri Takai said all DoD components must acquire government or industry-provided cloud services using DISA, or obtain a waiver...

Today's cloud contracts are driving away enterprise adoption

Grazed from InfoWorld. Author: David Linthicum.

Cloud computing has a growing problem: Many providers haven't built contract negotiations into their customer on-boarding processes. Instead, they offer "take it or leave it" contracts that protect the provider from everything, transferring all responsibility, liability, and risk to the businesses using the cloud services. Small and medium-sized businesses have accepted such contracts because they can't afford the lawyers to second-guess them. But large businesses have lawyers, and they aren't about to enter into such one-sided contracts.

That reality could inhibit cloud adoption, unless cloud providers get realistic about these contract issues. As Computerworld recently reported, large businesses have already started pushing back on cloud providers about these contracts. Today, cloud providers typically offer contracts that look more like they came from iTunes than a provider to IT. They're designed like all those consumer contracts that users simply click through until they find the Accept button. That won't fly in large businesses, which have stricter guidelines around managing liability, so enterprises will try to negotiate these contracts...

9 Questions to Ask Before Signing a Cloud Computing Contract

Grazed from Forbes. Author: Joe McKendrick.

Cloud computing may be highly virtualized and digitized, but its is still based on a relationship between two parties consisting of human beings. And since it is still the new kid on the block, both providers and users still trying to get their footing — and best advantage — in this new evolving type of relationship.

A few months back, researchers affiliated with the QMUL Cloud Legal Project at the University of London spoke to cloud providers and consumers, identifying the major points of discussion — or disagreement — that have been coming up in their negotiations for cloud engagements. The researchers, W. Kuan Hon, Christopher Millard and Ian Walden, documented their findings in a recent issue Stanford Technology Law Review. They found that some things are negotiable in a cloud computing engagement, other things are not. Here are the top nine points of contention that have been arising:...

What are data protection regulators looking for in cloud computing contracts?

Grazed from International Law Office. Author: Fiona Wilson and Oliver Bray.

The recent rise of cloud computing – both for businesses and at consumer level – is providing a decent challenge for the regulators tasked with applying established data protection principles to this new and fast-developing industry.

Until last year there had been little guidance at UK or EU level. However, in July 2012 the Article 29 Working Party – the independent advisory body made up of data protection regulators from across the EU member states – released its Opinion on Cloud Computing (05/2012). This was closely followed by guidance from the UK regulator, the Information Commissioner's Office (ICO). The ICO's Guidance on the Use of Cloud Computing was published in September 2012...

Gartner: Amazon, HP cloud SLAs are "practically useless"

Grazed from NetworkWorld. Author: Brandon Butler.

Amazon Web Services, which Gartner recently named a market-leader in infrastructure as a service cloud computing, has the "dubious status of 'worst SLA (service level agreement) of any major cloud provider'" analyst Lydia Leong blogged today, but HP's newly available public cloud service could be even worse..

HP launched the general availability of its HP Compute Cloud on Wednesday along with an SLA. Both AWS and HP impose strict guidelines in how users must architect their cloud systems for the SLAs to apply in the case of service disruptions, leading to increased costs for users...

How banks can select a reliable cloud computing provider

Grazed from The Houson Business Journal. Author: Lisa Chason.

Businesses all over the world are making the leap to the cloud as a cost-effective way to store and protect vast amounts of transactional data and information. Financial institutions are no different. However, given the sensitive nature of the data that banks handle with every transaction, it is crucial to understand how to design and deploy the right cloud solution to ensure security of customers’ information.

In recent years, security breaches impacting financial institutions and their customers have been widely reported, so banks are continuously updating their security platforms — and may be hesitant to transition to the cloud, which is sometimes perceived as less secure...

How to write security into a cloud contract

Grazed from FierceCIO. Author: Caron Carlson.

Enterprises have been loud and clear about ongoing security concerns regarding cloud computing, but by and large, vendors haven't responded with robust service level agreements or any other reassuring controls, experts say. Customers should be on the lookout for nine controls that could relieve their concerns, reports Brandon Butler at Network World. One of the most effective security provisions customers should ask for in a cloud contract is a certificate that shows data is deleted when the contract expires. This is not at all common, Butler notes, but it is legally defensible.

Other highly effective provisions would include a disaster recovery clause and a clause that establishes that the provider is responsible for the customer's losses if a security breach occurs. Unfortunately, these provisions are also non-existent today...

Cloud computing IT outsourcing contracts triple

Grazed from ComputerWeekly. Author: Carl Flinders.

The number of global IT services deals with a cloud computing element have tripled since 2010, according to research from IT outsourcing consultancy Information Services Group (ISG). ISG used its TPI index to analyse IT outsourcing deals and found this year will see 300 IT contracts awarded which feature cloud computing services. This compares with 110 in 2010 and 220 in 2011.

Stanton Jones, emerging technology analyst at ISG, said the move to standardised platform-based services which are difficult to customise is a step-change for the IT services sector. “Cloud services, especially shared platforms, are a new terrain for providers and clients alike, as they are highly standardised and can’t be easily customised — the antithesis of traditional outsourcing,” said Jones...

Force majeure and cloud computing contracts

Grazed from International Law Office. Author: Sanjay Pritam and Peter Lumley-Savile.

More and more businesses are looking to use cloud computing to access a broad range of computer software and services. At its most basic level, 'cloud computing' is defined as the delivery of information technology as a service over the Internet. Cloud computing offers companies substantial cost savings and greater flexibility; but despite these obvious benefits, it also presents significant risks, particularly in relation to the security of data stored in the cloud. It is therefore important that a business considering the use of cloud computing takes appropriate steps to mitigate the dangers, both legal and commercial. A company can quickly become dependent on the ability to access the cloud and may be paralysed in the event of service interruptions.

While a number of issues should be considered in a cloud computing contract (eg, performance monitoring, interoperability and transitional arrangements), this update focuses on a contract term that often does not receive the consideration it deserves, normally to the detriment of a cloud computing customer: the force majeure clause...

CGI Moving FTC Websites to Cloud Computing Infrastructure

Grazed from Executive Biz. Author: Ross Wilkers.

CGI Federal will transition the Federal Trade Commission‘s public websites to a cloud computing infrastructure under a five-year, $3.5 million contract. The company said it won the contract through the General Services Administration‘s Infrastructure as a Service blanket purchase agreement, through which the company delivers certified cloud services to the government.

“The demand for cloud continues to grow as agencies seek to implement affordable solutions that have increased security, provide more availability, and have better performance,” said Toni Townes-Whitley, a senior vice president...