Know the key legal and security risks in a cloud-computing contract

02.04.2013

Questions to ask

Users should be aware of a cloud provider's implementation process -- how your company's data will be ingested into their cloud infrastructure. Things to consider include whether there will be a lot of work converting your data into their format, or whether they're simply starting with fresh data at the point the contract is signed. Will the data be encrypted If not, are there data breach notification laws in the state or country where it will be stored

Most states now have such laws, Petersen said.

It's also better if you have time to check out a vendor and see how the technology works and whether it does what it's supposed to, Petersen said.

Among the more important nuances of a cloud contract is how your company will end the pact and transition data out of the cloud, either back into a private data center to a new cloud provider.

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