97
terminating a Cloud computing contract will play a much more important
role than with other contract types.
It is also important to note that the danger of a vendor lock‐in also occurs if
the user employs multiple providers with coordinated services. This multi‐
vendor strategy means accommodating the services to avoid incompatibility
and reducing other interoperability migration issues to a minimum.
The risk of a vendor lock‐in is very real, but it can be prevented or at least
mitigated by a careful choice of Cloud service provider and equally carefully
wording of the contract. This risk can be further reduced by agreeing with
the Cloud provider upon the data formats, which are to be used in the Cloud
and defining data formats which can be processed by the customer in case
of an insourcing without problems (e.g. mandatory use of open standards).
Another aspect which can lead to lock in situations is the loss of the
customer’s IT know‐how. This loss can be countered by stipulating in the
contract that there has to be an on‐going continuous exchange of
information between the Cloud provider and the IT department of the
customer.
But one should also note that risk assessment is very much recommended in
this context, too. The less critical the data or applications are, the more
likely it is that a company will be willing to take the risk of vendor lock‐in.
Contracts of this kind will only be more favourable economically than
comparable offers that give the customer more choice in the short‐term or
possibly mid‐term due to the expectation of a longer or long‐term
commitment. Thus, as we can see, freedom comes at a price.
3.3.7
Setting up the agreement
General Comments
Although every customer has a different negotiation position, which finally
depends on the services procured and the customer's size and market
position in relation to that of the provider, each customer should anticipate
the need to box its own contractual requirements and wishes into the
existing standard contract, instead of mutually negotiating a new, relatively
balanced contract with the provider.
Like other technically orientated contracts, Cloud computing contracts
comprise of two parts instead of one long document; as a contract which
governs the legal aspects of the cooperation and a Service Level Agreements
(
SLA) that details the technical aspects. However, it is often difficult to
