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Cloud Technology Agreement

As we know, cloud computing is already an advanced technology, It is useful to reduce investment and operating costs. Prior to this technological improvement, there was the best use of equipment in computing centers. If someone has to use the equipment once, they have to invest in it. As a general rule, disclosure of data is limited to staff members or agents who have «knowledge» for the purposes of the agreement and who have signed a confidentiality agreement or who are bound by professional confidentiality obligations. Pricing model and licensing structure: Finally, it is also important to understand the royalty structure, since CSP agreements often follow a «pay-ass» basis of the royalty structure and not a fixed or recurring pricing mechanism. CSPs also follow a model based on limited licensing fees, with the company using software located in a CSP site in a limited license format, which is not the workings of conventional software licenses. Therefore, companies should be wary of all non-traditional clauses contained in such software agreements. In a TRADITIONAL LICENSING SOFTWARE or hardware purchase commitment, the supplier installs the software or equipment in the customer`s environment. Customers can set up software or hardware to meet their specific business requirements and maintain control over their data. In a cloud computing environment, software, hardware and customer data are hosted by the vendor, usually in a common environment (i.e. many customers per server), and the software and hardware configuration is much more seamless for all customers. As a result, the customer`s top priorities shift from configuration, implementation and acceptance to service availability, performance (i.e. service levels) and data security and control.

However, provisions such as insurance, compensation, intellectual property, liability limitations and guarantees are also important. Appropriate levels of service are needed to ensure that the availability of the service is tailored to the customer`s expectations and that it must be delineated in the agreement. In addition, appropriate corrective measures should be made available to ensure that the provider is encouraged to work in accordance with agreed service levels.

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