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legal issues in cloud computing agreements - Australian ...

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Introduction<br />

Like <strong>cloud</strong> comput<strong>in</strong>g itself, <strong>cloud</strong> comput<strong>in</strong>g <strong>agreements</strong> appear <strong>in</strong> a wide variety of forms.<br />

These can range from simple standardised click wrap <strong>agreements</strong> to multilayered sets of terms<br />

and conditions. There are, however, a core set of <strong>legal</strong> <strong>issues</strong> that agencies should consider <strong>in</strong><br />

any <strong>cloud</strong> comput<strong>in</strong>g agreement, whether the agreement expressly deals with those <strong>issues</strong> or<br />

not.<br />

The purpose of this Better Practice Guide is to assist agencies to navigate typical <strong>legal</strong> <strong>issues</strong> <strong>in</strong><br />

<strong>cloud</strong> comput<strong>in</strong>g <strong>agreements</strong>. Some of these <strong>issues</strong> will be familiar to those who deal regularly<br />

with <strong>in</strong>formation technology contracts, but even <strong>in</strong> respect to those <strong>issues</strong>, the nature of <strong>cloud</strong><br />

comput<strong>in</strong>g can create new or different risks and agencies may need to consider those <strong>issues</strong><br />

afresh <strong>in</strong> the <strong>cloud</strong> comput<strong>in</strong>g context.<br />

Overview of <strong>cloud</strong> comput<strong>in</strong>g <strong>legal</strong> <strong>issues</strong><br />

What is <strong>cloud</strong> comput<strong>in</strong>g<br />

As set out <strong>in</strong> the Cloud Comput<strong>in</strong>g Strategic Direction Paper 1 , the <strong>Australian</strong> Government def<strong>in</strong>es<br />

<strong>cloud</strong> comput<strong>in</strong>g as:<br />

an ICT sourc<strong>in</strong>g and delivery model for enabl<strong>in</strong>g convenient, on-demand network access to a<br />

shared pool of configurable comput<strong>in</strong>g resources (e.g. networks, servers, storage, applications<br />

and services) that can be rapidly provisioned and released with m<strong>in</strong>imal management effort<br />

or service provider <strong>in</strong>teraction.<br />

Cloud comput<strong>in</strong>g at the broadest level, therefore, is the provision of comput<strong>in</strong>g as a service over<br />

a network, typically the Internet.<br />

Cloud comput<strong>in</strong>g services are usually grouped <strong>in</strong>to the follow<strong>in</strong>g categories:<br />

<br />

<br />

<br />

software as a service – the provision of software over a network rather than the software<br />

be<strong>in</strong>g loaded directly onto a locally available computer<br />

platform as a service – the provision of comput<strong>in</strong>g platforms that create the environment for<br />

other software to run (for example, operat<strong>in</strong>g systems) over a network rather than be<strong>in</strong>g<br />

loaded directly onto a locally available computer<br />

<strong>in</strong>frastructure as a service – the provision of access to computer <strong>in</strong>frastructure (for example,<br />

data storage or process<strong>in</strong>g capability) over a network that is used to compliment local<br />

platform resources.<br />

1<br />

http://agimo.gov.au/files/2012/04/f<strong>in</strong>al_<strong>cloud</strong>_comput<strong>in</strong>g_strategy_version_1.pdf<br />

Negotiat<strong>in</strong>g the <strong>cloud</strong> – <strong>legal</strong> <strong>issues</strong> <strong>in</strong> <strong>cloud</strong> comput<strong>in</strong>g <strong>agreements</strong> | 4

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