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


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



  • 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

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.