Cloud – Benefits, solutions and legal aspects

It was my pleasure to attend an event organized by the Netherlands Romanian Chamber of Commerce, where I was one of the speakers: “Knowledge Center Enabling the Cloud – Benefits, solutions and legal aspects”.

On the subject: Legal issues in cloud computing agreements

Cloud computing is becoming an increasingly attractive model for delivery of an ever expanding range of hardware and software functionality, due to the potential cost savings and enhanced flexibility that can be offered by cloud computing providers.

The main feature – flexibility – that led to the growth of these type of agreements, arises from the ability for users to access from a diverse range of locations. The increasing spread of wireless Internet connectivity and proliferation of mobile Internet enabled devices make mobile computing more attractive and accessible.

But, while the technology is rapidly maturing, negotiating agreements with cloud providers can be a challenge. They appear in a wide variety of forms, but all have a core set of legal issues that contractors should consider.

Therefore, we draw attention upon a “legal checklist” with some key issues:

1. Personal data protection (privacy, security, confidentiality, ownership rights)
2. Liability
3. Force majeure clause
4. Backup obligations
5. Escrow clause

We consider that, in contemplating a cloud computing agreement, a client should ensure that these issues are considered and addressed as necessary.

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