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Why do cloud contracts founder?

What normally kills a cloud contract? Computerworld UK has published a selection of thoughts on what can go wrong and how to avoid issues at the drafting stage.

It runs through a number of items: understanding the terminology in use from the provider, which is hardly unique to the cloud provider; diligence on items such as business continuity (it can be a mistake to assume you’re backed up because you’re in the cloud, for example), maintaining data privacy, performance indicators and regulatory concerns are also highlighted.

We’d add that you should ensure the divorce agreement is as clear than the initial getting together – if not more so. A few years ago cloud provider 2E2 went under and the receivers began by wanting thousands to retrieve data to which the creditors assumed they were entitled as they owned it. There had been little or no thought whilst drafting the contract about what would happen if the cloud provider vanished.

Many engagements in the cloud work out perfectly well. Of the handful that don’t, a number might have been better with a stronger contract.