COMP30231: Service Centered and Cloud Computing

Lecture Overview: Contracting with Third-Party Cloud Providers

Past Topics Covered:

• IS Strategy and cloud computing benefits
• Enterprise Architecture framework for cloud computing
• Cloud services solution selection and implementation
• Governance and cost models
• Business case for cloud computing
• Risk management
• Understanding third-party cloud service providers

Today's Focus:

• Contracting with third-party cloud service providers

Lecture and Seminar Schedule

• Week 1: IT Strategy & Cloud Computing Introduction
• Week 2-4: Adopting Cloud Computing
  • Enterprise Architecture
  • Gap analysis and implementation
  • Governance
• Week 5: Cost models (capital vs. expense)
• Week 6: Business case for Cloud Computing
• Week 7: Risk management in Cloud Computing
• Week 8: Cloud provider business models
• Week 9: Contracting with Cloud providers
• Week 10: Review
• Week 11-12: Exam support drop-ins

Contracting with Cloud Providers

Importance of Contracts

• Clearly define service provision, costs, roles, and responsibilities
• Manage risk and handle dispute resolution
• Adapt to changes in service needs

Contractual Changes with Cloud Services

• Old Method: Customized agreements, long negotiation
• New Method: Standardized, virtualized solutions with immediate agreement
• Deal Structure: From complex and inflexible to simpler, more flexible arrangements
• Delivery Model: Shift from 1:1 to 1:many cloud models

Contractual Elements

• Service Provided: Define services, incident management, and customer expectations
• Payment: Fixed versus variable fees, metered usage, and deadlines for changes
• Dispute Resolution: Terms for cancellation, penalties, liability, and intellectual property
• Roles & Responsibilities: Define between provider and customer (security, data protection)

GDPR Overview

• Data Controller vs. Data Processor roles
• Compliance with AML, FATCA, CRS

Service Level Agreements (SLAs)

• Measure supplier performance: availability, reliability, scalability
• Service credits for downtime
• Examples from Terremark and Rackspace

Managing Risk through Contracts

• Identify risks: scope creep, technology issues, supplier reliability
• Risk responses: avoidance, acceptance, transference, mitigation
• Contract terms aligning with risk responses

Legal Issues in Contracts

• Compliance with standards like ISO27001
• Specific compliance terms for Microsoft Azure

Summary

• Contracts are crucial in cloud services with detailed definitions
• GDPR compliance is essential
• SLAs form the basis for measuring provider performance

Seminar Focus

• Selecting appropriate cloud service providers
• Writing effective contracts for cloud services