Overview of cloud computing, the business and legal risks and benefits and structure of cloud computing agreements.

1. Next Generation IT:
Business in the Cloud
Presented by:
Matti Neustadt Storie
Stoel Rives LLP
May 17, 2010
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2. Next Generation Information
Technology
• What is Cloud Computing?
• Why is it such a big deal?
• What does the legal department need to know?
• How do we mitigate risks?
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3. Why?
• The ZETTABYTE
• Available from any
standardized platform.
• No need to hire
employees to provide
the specific service.
• Easy access to a wide
range of service
providers.
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4. The Cloud Service Agreement
• Pay per Use
– User
– Machine
– Hour
– GB
• “Expert” Maintenance
• Always Available*
• Ease of Interface
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5. The Cloud Service Agreement
• Pay per Use
– User
– Machine
– Hour
– GB
• “Expert” Maintenance
• Always Available*
• Ease of Interface
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6. What is Cloud Computing?
• The Latest “Business” Books:
– Anything on the Internet.
– Storing data remotely
• Wikipedia:
– The practice of using a network of remote servers hosted on
the Internet to store, manage, and process data, rather than
a local server or personal computer.
• NIST:
– Characteristics
– Service Models
– Deployment Models
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7. What is Cloud Computing?
• Characteristics:
– on-demand self-service
– broad network access
– resource pooling
– rapid elasticity
– measured service
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8. What is Cloud Computing?
• Service Modes
– Software as a Service (SaaS)
• Salesforce.com
• Ceridian
– Platform as a Service (PaaS)
• MS Azure
• Google AppEngine
– Infrastructure as a Service (IaaS)
• Rackspace
• GoGrid
• Amazon Web Services
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9. What is Cloud Computing?
Public
Hybrid
Cloud
Cloud Private
Cloud
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10. I Want One of Those
• Half of large enterprises will rely on public clouds by
2015
• Cloud computing is at the “peak of inflated
expectations”
• Gaps between enterprise software providers and
cloud computing is closing
• If you’re not on the cloud now, you will be soon.
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11. Why?
VIDEO CLIP
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12. Top Concerns - Business
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13. Legal Concerns
• Data Security
• Privacy
• Redundancy/
Back-up
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14. More Legal Concerns.
• Fewer clickwrap and browsewrap agreements?
• More complex multi-tiered service + license
agreements.
– Configuration
– Licensing
– Maintenance and Support
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15. Legal/Business Concerns
• “Perpetual Revenue” model
• Integration costs
• Dot.com Part II ?
– Engage before service providers are chosen.
– Partner with IT/IS and not just procurement
• Licensor/Service Provider Bankruptcy
– Data storage
– Executory contracts
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16. The Cloud Services Agreement
• The Cloud Services Agreement:
– Qualifies the characteristics of the model.
– Specifies the deployment model parameters and
responsibilities.
– Defines the service parameters and expectations (SaaS,
PaaS, Iaas).
– Provides a clear cost structure for all development,
integration, and maintenance activities.
– Appropriately addresses responsibility for data security.
– Places the burden of each activity on the party best suited to
handle it.
– Considers the unlikely and unpleasant.
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17. Key Take-Aways
Take-
• Engage Early
– Procurement
– IT
• Define what each of the five Characteristics mean to
your organization in terms of Quality and Warranty
statements.
• Fear only what is appropriate.
• Choose the Right Service Provider
• Own Your Data and Get It Back
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18. Thank You
Questions?
mnstorie@stoel.com
(503) 294-9523
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