1. Contracting for Cloud Services Risk & Compliance
Luke K. Pedersen
October 10, 2012

2. Shifting Fundamentals
Structure
Simplified payment model
SLA (uptime, response time, QoS)
Control
Service vs. delivery
Commoditization vs. customization
Network of providers v. sole provider
Multi-tenant vs. single tenant (shared pool)

3. Shifting Fundamentals (con't)
Transparency
Location of data
Operation
Security
Risk Allocation
Traditional warranties, indemnities, damages caps
But -- limited risk-shifting to CC provider

4. Legal Issues
License Rights
Performance (QoS)
Reps, Warrants, Indems, LoL
Data Security & Privacy
Compliance

5. Trends
Legal compliance will determine the type of data exposed to the cloud
Customer-specific contractual requirements curtail or eliminate economic benefit of the cloud
Additional risk shifting necessary for widespread use
Private, community and hybrid clouds leveraged