Contracting for Information Technology Services
Useful for: Government, Local Government, Business (all kinds)
In Brief
- Use of infrastructure belonging to someone other than the company to hold, process and/or store a customer’s data carries special risks.
- Services may include service may include system storage, monitoring, security, load balancing and backup of data.
- The server/s being made available to the customer are in geographical locations determined by the supplier, and the supplier controls the data environment (the data centre).
- The customer has no control (other than to exercise its rights under a contract and/or under legislation) and relies heavily on the supplier:
- engaging on reasonable contractual terms and conditions,
- having in place appropriate security measures, certifications and insurances in place to deal with breaches or disaster events, and
- complying with all relevant laws in jurisdiction/physical location of the servers as well as in the jurisdiction/location of the customer.
- Data services in the cloud are provided on a “one platform many users” basis and therefore the ability of a customer to negotiate terms is usually very low although suppliers may agree to consider the information technology policy of a customer and make reasonable efforts to comply with it.
- well known global providers of data services include Amazon Web Services, Cisco, Dell, Google, Microsoft, Macquarie and Oracle (to name a few).
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