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

02.04.2013

Some vendors offer automated monitoring and reports for their customers rather than reports on request. And if your site goes down due to a SaaSSaaS outage, make sure you know how the vendor will reimburse you for any loss of business. That reimbursement often comes in the form of credits that can be used toward the cost of the contract. But don't expect credits to cover your entire loss due to site downtime. Alles zu SaaS auf CIO.de

"You'll almost always see a cap on direct damages ... as well as the exclusion of indirect damages," Petersen said.

More importantly, if there's an ongoing issue, ensure there's clear contract language in that allows your company to bail out of a deal and reclaim data. Typically, there will be some early termination fee associated with leaving a contract early; companies should know what it is.

"You need termination rights for chronic or recurring failures," Petersen said. "The real remedy is to be able to bail out of the deal and find another service provider."

Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on TwitterTwitter at . His e-mail address is lmearian@computerworld.com. Alles zu Twitter auf CIO.de

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