Cloud Contracts: Six Items CIOs Need to Know Before Signing

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8
Next Cloud Contracts: Six Items CIOs Need to Know Before Signing-7 Next

Third-Party Auditing

An important question a CIO must ask centers on, "Is the cloud infrastructure vetted by a third party?" These outside validations examine how the cloud infrastructure is built and maintained and provide authentication to the provider's claims.

Cloud-based infrastructures and applications are part of almost every company's IT architecture. With each cloud service provider relationship, the CIO must carefully read, negotiate and sign a contract outlining service-level agreement (SLA) performance, security, data privacy and ownership, data sovereignty compliance and termination procedures.

A shared understanding of the client's needs and the provider's capabilities and offerings is critical to a successful relationship. Accordingly, it is essential that CIOs purchasing cloud services be able to clearly educate the provider on the company's needs, history with cloud, relationships with other providers and reasons for seeking this infrastructure. The provider can then best deliver a package of services to meet these requirements.

During contract negotiations, the provider often offers further education on how to create a comprehensive plan for using cloud services as well as detailed insight on the topics of security, data access and general risk. This is important as there are still misconceptions about cloud services, such as what happens to information once it leaves the client's data center. This symbiotic information sharing will lead both parties to a more meaningful agreement when reviewing the services contract, especially as it relates to the following six key items, identified by Mark Kristiansen, SVP and general counsel, Dimension Data Americas, that are usually the most contested.

About Mark Kristiansen

Mark Kristiansen is Dimension Data Americas' senior vice president and general counsel. He manages the legal affairs for the Americas, overseeing risk and compliance, corporate governance, mergers and acquisitions, litigation, contracts, employment and labor, as well as intellectual property issues. Mark joined Dimension Data in 2001 after the company acquired Proxicom, where he held a similar role. He received his Juris Doctor from the College of William & Mary School of Law in Williamsburg, Va. Mark received his B.A. in Spanish literature and Political Science from Brown University. He is admitted to practice law in Maryland and is a member of the American Association of Corporate Counsel.


Related Topics : IBM Looks to Redefine Industry Standard Servers, APC, Brocade, Citrix Systems, Data Center

More Slideshows

HCI 10 Reasons Why the Enterprise Is Turning to Hyperconverged Infrastructure

While HCI is certainly innovative in design, its true measure lies in the practical benefits it brings to data center management and operations. ...  More >>

DataM63-290x195 Data Storage Today: Key Takeaways from VMworld 2016

Survey findings include pain points for secondary storage, average restore times, the growth of hyperconvergence and rate of cloud adoption in enterprises.  ...  More >>

cloud51-190x128 5 Best Practices for Managing Zombie Cloud Infrastructure

IT administrators need to identify zombie assets, verify idle status and shut off anything that is unused. Here's how to get your dormant infrastructure back in shape. ...  More >>

Subscribe Daily Edge Newsletters

Sign up now and get the best business technology insights direct to your inbox.