Q&A: Cloud Computing – Choosing a Vendor

by John Rake

Q: I am a business owner who believes “cloud computing” may save me money on IT needs. What legal considerations are important in choosing a vendor?

A: There are several legal considerations, including, but not limited to: (1) Can the vendor protect your trade secrets and customer data and comply with privacy/security laws? (2) Do the vendor’s disaster recovery and business continuity plans promise access to data/services when you need it? (3) Does the service agreement limit the vendor’s liability in the event your data is compromised or the vendor’s service becomes unavailable through no fault of your own? (4) What jurisdiction governs disputes? (5) What are the parties’ obligations if you decide to migrate data/services away from the vendor?


Originally published in the Portland Business Journal.

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