Gartner Research

Key Actions That Will Maximize Your Chances of Success When Negotiating Public Cloud IaaS Contracts

Published: 21 March 2017

ID: G00321279

Analyst(s): William Maurer, Daniel Barros, David Groombridge

Summary

Sourcing and vendor management leaders should not rely on contract negotiation alone to address all business risks when sourcing public cloud IaaS, except for security, privacy and termination clauses. For all else, either disqualify the provider, or use hybrid cloud or other mitigation strategies.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Key Activities to Conduct Before Selecting the Public Cloud IaaS Provider and Negotiating the Contract
  • Key Clauses to Negotiate in Public Cloud IaaS Contracts
  • Critical Clauses
    • Termination
    • Data Privacy
    • Security
  • Important Clauses
    • Confidentiality
    • Use of Subcontractors
    • Liability
    • Post-Termination Assistance
    • Indemnification
    • Data Retrieval Charges
  • "Nice to Have" Clauses
    • Overall Notification
    • Discount Programs
    • Nondiminishing Services
    • Force Majeure Definition
    • Service Credits

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