Legal issues in cloud computing — part two

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Remote-access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular.

Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications. For many companies the business case is compelling. As with any business decision, it is important to be fully informed, and aware of the risks. In this article, the second in a series of two, we look at some further core legal considerations associated with cloud computing.

As with most IT services agreements, service levels – which provide objective and measurable standards and help manage performance and quality – are also relevant to cloud services. One key difference, however, is that Cloud Service Providers will typically set service levels that are applicable to all their customers, and there will be little scope to negotiate…

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