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Negotiating a cloud computing deal

6/14/2011

As more companies begin opting to put their services and information into the cloud, the responsibility of IT departments to negotiate a solid, effective contract with managed service providers has increased.

A recent Computing.co.uk article relayed tips for IT leaders to use when entering such negotiations.

First, companies entering the process need to be aware of the state of the cloud computing market, as knowing competitor's prices and services can serve as leverage.

"If you don't do this you can spend a year discussing points that a cloud supplier will never agree to, and projects will be put on hold when they don't need to be," Alex Hamilton, director of technology at legal firm Radiant Law, told the news source.

Furthermore, companies need to ensure that the terms of use explained in any agreed-upon contract are clear and do not favor one side over another.

Hamilton stated that many "scary terms" exist and legal firms are constantly dealing with "these kinds of contracts."

Thus, for companies hoping to jump into the cloud, ensuring an effective and equal contract is struck is essential.