EU demands new cloud contract regulations

From cloud-based ERP to professional services automation, cloud computing has grown into a massive industry and the future is only looking good. With that prosperity has come huge contracts among industry players both minor and major, and now that the cloud has such importance both to technology and the economy at large, the European Union is looking to formalize the oversight on cloud computing contracts.

New oversight committee
The European Commission, the most important lawmaking sector of the European Union, has begun to form a committee to advise on the creation of simpler and clearer contracts for cloud computing, according to an article at PC Advisor. The committee will be made up of people from a variety of areas, including academia and industry, and is only the first part of the Commission’s cloud computing goals. The other objectives of the commission’s strategy are a certification plan for appropriately qualified providers, cloud adoption throughout the public sector, and a clearer definition of standards.

Commissioner says transparency is key
Neelie Kroes is the EU’s Digital Agenda Commissioner, and she wrote about the efforts on her blog recently, saying that it is essential that those involved in contracts can comprehend them.

“People don’t always understand the terms in their contract: what they’re paying for, and what they can expect,” wrote Kroes. “Well, I think you should be able to know what you’re getting and what it means – and it should be easy to ensure that the terms in your contract are reasonable: open, transparent, safe and fair.”

Small businesses, especially, need to be assured that cloud contracts will work in their favor, lest they shun the risks which are so vital to the economic growth the EU seeks, Kroes wrote.

“[Small firms] who might hesitate to use the cloud because of fears that they will not meet their legal obligations, or who might be worried that they get locked in or stranded by changes of technology or service by cloud providers… they don’t want the risk of getting mired in foreign court cases in foreign languages,” Kroes wrote.

This is a big time in the development of the cloud, and the reason such clarity is necessary is because so many cloud contracts are on the way. If you’d like your business to get involved in one of these, BMI Cloud Solutions is a great partner, as their products like NetSuite can help you to make the most of this technology.