risk at utility computing
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There are some of the legal considerations to address before we sign a utility computing deal.
Lack of clarity:
It is important to be very clear about what is being provided.
Supplier lock-in:
The utility computing model suggest a long-term agreement to a supplier and may be prevented from selecting another supplier which can have the superior products or services.
Contract mismanagement:
If customer fails to manage/operate the contract properly, then the service may not achieve the stated business goals and may lead to legal disputes.
Security problems:
Customers needs to be clear about the levels of the security which will be be required and sufficient warranties need to be provided in the agreement.
Licensing issues:
The type of licence provided by the suppliers may vary but mostly they operate on per server, per system or per user basis.
There are some of the legal considerations to address before we sign a utility computing deal.
Lack of clarity:
It is important to be very clear about what is being provided.
Supplier lock-in:
The utility computing model suggest a long-term agreement to a supplier and may be prevented from selecting another supplier which can have the superior products or services.
Contract mismanagement:
If customer fails to manage/operate the contract properly, then the service may not achieve the stated business goals and may lead to legal disputes.
Security problems:
Customers needs to be clear about the levels of the security which will be be required and sufficient warranties need to be provided in the agreement.
Licensing issues:
The type of licence provided by the suppliers may vary but mostly they operate on per server, per system or per user basis.
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