Cloud Computing Contracts RSS
"Cloud computing” can be understood in simplified terms as the storing, processing and use of data on remotely located computers accessed over the internet. This means that users can command unlimited computing power on demand, that they do not have to make major capital investments to fulfill their needs and that they can get to their data from anywhere with an internet connection.
Cloud computing has the potential to slash users’ IT expenditure and optimize online communication and collaboration. On 27 September 2012, the European Commission adopted a Communication on "Unleashing the potential of cloud computing in Europe". The Communication set up a strategy to speed up and increase the use of cloud computing across the economy.
The strategy comprises three key actions. Key action 2 concerns the identification of safe and fair contract terms and conditions for cloud computing contracts.
Currently, unclear, complex and legally uncertain contracts deter traders and individuals from using cloud. The existing regulatory environment of national contract laws might not be fit for cloud based services. In some instances, the current situation might lead to unfair and unbalanced contracts where the risk is unduly allocated to one of the contract parties (usually the user of cloud based services) despite the existing legislation.
The Commission has set up on 14 June 2013 a group of experts who work on safe and fair conditions for cloud computing contracts in order to facilitate the improvement of contractual arrangements between cloud computing service providers and consumers and small firms. The Expert Group should help identify best practices relating to cloud computing contracts and work towards ensuring that terms and conditions in cloud computing contracts are safe and fair.