IBM simplifies its cloud contract to two-page document

IBM has created a standard two-page contract for customers using its cloud computing services

IBM has created a standard two-page contract for customers using its cloud computing services to replace long and complex contracts and negotiations.

Cloud computing promises simple plug-and-play IT services for businesses but contracts are often complicated.

IBM said cloud contracts are typically about 10 pages long.

IBM vice-president and assistant general counsel said it's ironic cloud computing represents a faster and more innovative approach to doing business, yet complex and lengthy contracts from suppliers remain an obstacle.

“By dramatically simplifying and accelerating how clients contract for cloud services, IBM is making it easier and faster for companies to reap the benefits of cloud,” he said.

Since 2007, IBM has invested more than $7bn in 17 acquisitions to increase its cloud offerings. The company now processes more than 5.5 million client transactions daily through IBM's public cloud.

IBM reported cloud revenue of $4.4bn for 2013, which was 69% higher than 2012.

IBM is also stretching its cloud computing services global reach and has added 12 locations to its network of cloud centres.

Locations for the latest IBM cloud centres include Frankfurt, Mexico City and Tokyo. Nine more centres have been added through a partnership with communications provider Equinix in Australia, France, Japan, Singapore, the Netherlands and the US.  

In July 2014, IBM’s London SoftLayer datacentre went live as part of its $1.2bn plan to build 15 datacentres in Europe to propel its cloud services. It also has centres in Mumbai, Amsterdam, Beijing, Hong Kong, Singapore, MelbourneToronto, Dallas and Raleigh.

The centres are open 24 hours a day, seven days a week. They guarantee customers 99.99% uptime.

Commentators have questioned the clarity of IBM’s overall strategy but developments such as simplified contracts and investments in delivery centres make its cloud computing plans clear.

IBM CEO Ginni Rometty recently said the company’s focus is on cloud, data and analytics, security, social and mobile.

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