EC to set cloud computing contract standards

EC to set cloud computing contract standards

The European Commission is drawing up a new set of standards to govern the cloud computing contracts that are used across the EU.

It is seeking experts from providers of cloud services as well as business users, consumers, and academic and legal professionals and forms part of the Commission’s Unleashing the Potential of Cloud Computing in Europe strategy which was unveiled last year. The team will look at concerns that have been raised by businesses about the clarity of contracts and will aim to improve the levels of trust between users and providers.

The EU's Justice Commissioner Viviane Reding said: "Making full use of the cloud could deliver 2.5 million extra jobs in Europe, and add around one per cent a year to EU GDP by 2020.

“Uncertainty around cloud computing contracts may hinder cross-border trade. As this is a very complex area, we are asking experts for advice before we decide on the next steps."

Business users have expressed worries about the complex contracts and service level agreements that come with some cloud providers’ products, the Commission said.

"The use of 'take-it-or-leave-it' standard contracts might be cost-saving for the provider but is often undesirable for the user, including the final consumer. Such contracts may also impose the choice of applicable law or inhibit data recovery,” it said in a statement.

"Even larger companies have little negotiation power and contracts often do not provide for liability for data integrity, confidentiality or service continuity.”

Demand for model terms and conditions were one of the most called for changes in the Commission’s initial consultation with professional users of cloud services.

It added: “The service level agreements determine the relationship between the cloud provider and professional users, and thus essentially provide the basis of trust cloud users can have in a cloud provider's ability to deliver services."

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.

(Image: European Commission)