In our IPT Webinar on 1 June 2011, Matthew Glynn and Edward
Chatterton took an in-depth look at the advantages and risks
associated with cloud computing.
Their discussion examined the legal framework for cloud
computing as well as strategies for adopting cloud computing. Here
we offer readers a brief overview of the main issues discussed
during the Webinar.
Cloud Computing Advantages
Cloud computing, which is generally understood as a model for
enabling on-demand network access to an elastic pool of shared
computing resources that can be rapidly provisioned and released
with minimal service provider interaction, has various advantages
and offers exceptional opportunities to a business:
Focus on core business
Running your infrastructure is likely not your primary skill
set. Cloud computing allows you to turn that infrastructure over to
experts so that you can focus on your core business.
Lower costs, dynamic scalability and flexibility
Cloud computing involves a paradigm shift from Capex to Opex
which brings about major cost savings and greater flexibility and
On-demand provisioning/ "Green credentials"
Cloud computing enables you to get more computing power almost
immediately which increases your "green credentials" as
you are using only what you need.
Stronger software version control
You can update the software simply by changing the software that
you are accessing in the cloud.
Reduce software piracy
Everything is much more controlled in the cloud and you can get
an uptime guarantee of up to 99.9999 percent in some cases.
Cloud Computing Strategy
Cloud computing strategies are evolving and each organisation
has different needs but certain best practices have come
Find a test case
Test the waters and do not just jump into this whole hog.
Understand the cloud infrastructure and the
Enhance regular auditing and monitoring.
Ownership of information is key
Ensure that you own your information and understand that how
your data is going to be handled.
Avoid cloud platform proliferation
Focus on one perhaps two cloud service platforms.
Understand the role (and lack of standards)
Form a committee with cross department collaboration to manage
risks and develop short form cloud service provider assessment
forms and standard templates of contractual safeguards, data
ownership and use limitations.
The Delta is (Potentially ) Enormous , Bridging the Gap
Customers such as banks, retail and telecommunications companies
generally have a standard agreement developed to look after their
position to reduce risks through a comprehensive set of terms and
schedules. Cloud vendors are, however, at the other end of the
telescope and the difference between the two is enormous. In Cloud
vendor contracts, it is normal that warranties are given by the
customers instead of service providers, and that service providers
have a right to suspend the service – which is almost
unheard of in traditional outsourcing contracts. To bridge the gap,
you should analyse the available cloud provider terms in the market
and try to derive core themes and standard practices from these. At
the other end of the spectrum, you should also analyse your
standard terms in order to derive your hub terms, your redline and
your key concepts and be prepared to potentially discuss,
negotiate, or agree a middle ground with the Cloud service
This publication is intended as a general overview and
discussion of the subjects dealt with. It is not intended to be,
and should not used as, a substitute for taking legal advice in any
specific situation. DLA Piper Australia will accept no
responsibility for any actions taken or not taken on the basis of
DLA Piper Australia is part of DLA Piper, a global law firm,
operating through various separate and distinct legal entities. For
further information, please refer to www.dlapiper.com
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The issue of recording telephone calls was recently considered in the Federal Court in Furnari v Ziegert  FCA 1080.
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