What is a Cloud Services Agreement Review?
A cloud services agreement is a legal contract between a cloud services provider and customer. It provides important information on aspects such as the parties’ duties, rights, and performance standards, to ensure a productive working relationship.
Since these types of contracts clarify both parties’ rights and prevent businesses from taking on unnecessary risk, they need to be reviewed for accuracy.
Read the rest of this article to explore what’s commonly included in a cloud services agreement, how to review it, and how a lawyer can help you through the process.
What are Key Terms in a Cloud Services Agreement?
There are various terms in a cloud services agreement that are important to include and have clarity on. These include the following:
- SLA (Service Level Agreement) clause. This specifies the type of service the provider will deliver, such as ensuring quick response times.
- Data ownership. It’s important for the cloud services agreement to define who has data ownership and how the client is allowed to access, use, or delete the information. Client rights need to be included.
- Security measures. The agreement needs to clarify what security measures are in place to protect customer data. This also serves to build trust between the service provider and client.
- Liability. It's crucial for both parties' liability to be explained, such as who should take responsibility for scenarios like service disruptions or breaches.
- Payment terms. The pricing structure for the cloud services need to be outlined, as well as any extra costs for storage or other tasks. This section should include methods of payment, how regularly payments should be made, and what happens in the case of late payments.
- Termination. If either party wants to end the agreement, the contract should include provisions for this. It’s also good to know what situations can trigger a termination, such as a lack of payment.
What Should You Look for in a Cloud Services Agreement Review?
When conducting a review of a cloud services agreement, you should check for the following things.
Remedies
If the cloud services provider doesn’t commit to the standards outlined in the agreement, there should be remedies outlined. It’s also good to note what occurs in the case of non-payment or contract breaches.
Third Parties
In some cases, the provider might work with third parties to deliver some of their services. The agreement should specify how they will ensure the vendors follow the same privacy and security guidelines, to keep you protected.
Services
Clients should consider what services they require so that the provider will meet their requirements. An important part of the agreement to review is the SLA so you can check if all guidelines and metrics are aligned with your business goals and needs.
Payment Terms
When reviewing the payment section of the agreement, make sure there are no hidden fees included. If you’re unsure of anything, you should consult with the other party for clarification, as payment terms are a common source of disputes.
Disruptions
As a business owner, you’ll want to be sure that the contract will protect your company operations. Look for tasks the provider will commit to doing to help you if something goes wrong, such as by providing backups.
Post-Termination Services
You should seek protection after the contract comes to an end, such as in terms of what happens to your data. If you’re migrating your data, you want enough time (usually 90 or 180 days) in which to move it before it’s no longer accessible.
Do You Need a Lawyer for a Cloud Services Agreement Review?
While you might not think hiring a lawyer to review your cloud services agreement is required, it’s advisable. Since these types of contracts usually contain complex clauses, and they can significantly affect your business, you want to have a legal review of them before you agree to their terms.
Here’s what a lawyer can help you with during a review:
- They’ll use their experience and skills to interpret legal or complex wording in the contract, which can expose hidden risks. A common example includes indemnity clauses that could require you to cover unnecessary costs.
- They’ll protect your software, data, and other intellectual property so that it can’t be used in any unauthorized ways.
- They’ll prevent you from taking on legal or financial risks that harm you or your business in the future.
- They’ll clarify your rights and obligations so that the agreement doesn’t contain any misleading or confusing information.
- They can negotiate with the other party for more favorable terms, if required.
Where Can You Find a Lawyer for a Cloud Services Agreement Review?
If you’ve decided that you want to schedule a legal review of your cloud services agreement with a professional lawyer, you don’t have to search for one yourself. Online legal marketplaces such as ContractsCounsel make the process of hiring a lawyer for contract review easy and quick.
ContractsCounsel is one of the largest online legal marketplaces where clients can connect with vetted, reliable lawyers who have years of experience in conducting contract reviews. They’re qualified to review your cloud services agreement so that it’s professional, reasonable, and legally sound to protect you.
If you want to hire a lawyer from the ContractsCounsel platform for a review, follow these easy steps:
1. Post your project for free on the ContractsCounsel marketplace.
2. Try to include a few details about what you require so lawyers know how to help you.
3. You’ll receive multiple bids from lawyers on the platform who want to assist you.
4. Once you’ve received the lawyer bids, you can review the lawyers' profiles based on criteria such as their location, experience, expertise, and client ratings for previously completed projects on the platform. All this data is conveniently on the platform for you to access.
5. Select the best lawyer according to your legal requirements. Get peace of mind that your contract is professional, fair, and legally sound.
