Whose cloud?
The provider of cloud computing will be a key supplier to any business so do your homework and find out who you’re dealing with. Key questions would be where are they based, the security standards that they operate to and their financial stability.
Where’s the cloud?
It’s likely that the cloud provider’s contracts will be governed by the laws of their home state or country. If things go wrong then bringing a claim under the laws of California is not going to be a quick, easy or cheap process for any UK business. Also if the worst happens and your cloud provider goes bust then you need to get access to your data in a useable format without months of negotiation with a foreign liquidator.
It also is sensible to ask where your data will be located. Data protection legislation restricts transfers of personal data (i.e. data that identifies an individual) outside of the European Economic Area. So if you were thinking of transferring your marketing database containing one million consumer names into the cloud then you would be well advised to use a provider that stores data only in the EU.
Cloud security
Data security is a key concern. Check the standard contracts of cloud providers as they often try to place responsibility for security and back up of data on the customer.
Under a cloud
The terms and conditions used by cloud providers generally make it very difficult for an unhappy user to obtain compensation. Often the only remedy offered is a credit against future invoices but that is of little value to you if you’re so dissatisfied that you want to move to a different provider.
Every cloud…
There’s a lot of hype around the cloud at the moment but it is an immature and rapidly developing market and, because of that, there are risks involved. If you bear in mind these key points, read the contract carefully and push for changes to any terms you’re unhappy with then you’ve got a good chance of seeing the silver lining.
Alex Weston is a specialist intellectual property and IT law solicitor.
To speak with Alex call 01904 683060 or send her an
email.