Assessing Safety Measures in Cloud Computing Agreements
When venturing into a cloud-computing service, it's essential to scrutinize the contract to ensure that your data security, privacy, and operational needs are met. Here are eight key areas to focus on when evaluating a cloud-computing service contract.
1. Data Transition
Clear processes for data export and retrieval upon termination or migration are crucial. Understand the guaranteed formats and timelines for data return or deletion, and ensure provisions are in place to prevent data loss or unauthorized access during migration.
2. Privacy Policy
A cloud provider should handle personal and sensitive data in compliance with relevant regulations like GDPR and HIPAA. Data ownership, access rights, and processing purposes should be clearly defined, and privacy obligations should be enforceable in the contract.
3. Data Security
Encryption methods for protecting data at rest and in transit, access control management, authentication methods like multi-factor authentication (MFA), security certifications, and compliance with standards such as ISO 27001 are all important aspects to consider. It's also essential to understand the division of security responsibilities between you and the provider.
4. Termination
Termination clauses regarding notice periods, consequences, and exit assistance are vital. Understand how data will be handled upon termination, whether it will be returned, deleted, or retained, and whether there are any penalties or fees associated with early termination.
5. Third-Party Compliance
Ensure that the cloud provider ensures third-party vendors or subcontractors comply with the same security and privacy standards. There should be transparency about any third parties involved and their responsibilities, and compliance audits and certifications for third parties should be addressed.
6. Problem Communication
Establish clear communication protocols and escalation processes for incident reporting and ongoing support. Understand how quickly the provider must notify you of security breaches, service disruptions, or data loss, and ensure there is a defined process for resolving disputes and handling complaints.
7. Cloud Uptime Guarantees
Uptime percentages (e.g., 99.9%, 99.99%) and service level agreements (SLAs) outlining compensation or penalties if uptime guarantees are not met are important. Understand how uptime is measured and reported, and what exclusions or exceptions apply.
8. Contract Elements for Software Development Contracts on Cloud
For software development contracts on cloud, intellectual property rights, milestones, deliverables, acceptance criteria, liability, warranties, indemnities, confidentiality, data protection, compliance requirements, updates, maintenance, and support services should all be clearly outlined.
By thoroughly reviewing these contract facets, you can ensure that your cloud service engagement protects your data security and privacy, aligns with compliance rules, and provides clear operational and termination procedures to mitigate risk. Keeping these considerations in mind will help you make informed decisions when selecting a cloud-computing service provider.
[1] ISO 27001 Annex A 5.23 [4] Clear SLAs specifying uptime, resolution times, and escalation procedures
- In the event of a dispute or issue resolution with the cloud-computing service, the contract should stipulate clear communication protocols and escalation processes to ensure prompt and efficient resolutions.
- To maintain the security and privacy of your data in the context of data-and-cloud-computing, it's crucial to establish that the cloud provider employs data-encryption techniques, follows industry-standard compliance like ISO 27001, and offers solutions for dispute resolution in their contract.
