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Cloud computing: Update

Cloud service contracts are still too complex for many businesses to grasp the potential risks and liabilities, Businesses are buying into cloud services without fully understanding what they're paying for and what they can expect from the service.

"One of the big barriers to using cloud computing is a lack of trust. I think you should be able to know what you're getting and what it means — and it should be easy to ensure that the terms in your contract are reasonable: open, transparent, safe and fair. Even if you don’t have a law degree,"

"Sensible, plain language contracts" be designed to spell out clear service level agreements and what a businesses' rights are on a range of issues, such as which third parties would be able to access a businesses' information or whether a firm will be notified in the event of data being stolen.

Drawing up model contracts for cloud services is a "key pillar" of the  Cloud Computing strategy. The strategy sets out the plan to resolve the "jungle of standards", contractual issues and differing national legal frameworks. will boost uptake of cloud services

Small firms are the most likely to be nervous about commiting to a cloud service "because of fears that they will not meet their legal obligations, or who might be worried that they get locked in or stranded by changes of technology or service by cloud providers"

"It is those same small businesses who stand to gain particularly from the cloud. Services that are flexible and adaptable, without high start-up costs

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