Tracking nine contractual terms can reduce risk in cloud contracts, according to Gartner.
Alexa Bona, research vice-president at Gartner, said: "Many cloud providers appear reluctant to negotiate contracts, as the premise of their core model is a highly leveraged approach. The starting point contractually often favours the vendor, resulting in a potential misalignment with user requirements."
According to Gartner, the nine key terms to understand in cloud deals to mitigate excessive risk are:
- Uptime guarantees.
- Service-level agreement (SLA) penalties.
- SLA penalty exclusions
- Security
- Business continuity and disaster recovery
- Data privacy conditions
- Suspension of service
- Termination.
- Liability
Gartner's IT Procurement Best Practices: Nine Contractual Terms to Reduce Risk in Cloud Contracts report covers the procurement criteria for cloud computing.
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