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Cloud contracts

Cloud contracts

Companies signing up to contracts for cloud computing on hosted systems need to properly understand what they are going to get under the terms of the deal.

This is according to a new report from IT analyst Gartner, which said businesses should be aware that many cloud computing contracts can be opaque and easily changed.

“Organisations need to ensure that they understand the complete structure of their cloud sourcing contract, including the terms that are detailed outside of the main contract,” it stated.

Gartner added that it is important enterprises get an agreement from their cloud provider that their terms cannot be altered during the period of the agreed contract and the first renewal term.

Earlier this week, the Daily Telegraph reported one organisation that has been successful in its use of cloud computing is the Royal Mail, which has been employing the technology since 2008 and is making savings on its maintenance costs as a result.

 

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