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Gartner's top nine cloud contract terms to mitigate risk

Cliff Saran

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:

  1. Uptime guarantees.
  2. Service-level agreement (SLA) penalties.
  3. SLA penalty exclusions
  4. Security
  5. Business continuity and disaster recovery
  6. Data privacy conditions
  7. Suspension of service
  8. Termination.
  9. 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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