Cloud Computing Agreements: Initial Considerations


Cloud computing is an Internet-based (cloud) information technology (IT) delivery method that enables shared use of a service provider's IT resources (computers, software, and data storage). Cloud computing allows the customer to access and self-provision those assets when needs require (on-demand). The customer is then charged for that access on a pay-as-you-go or flat fee subscription basis, or a combination of both. In contrast to traditional on-premise models, which are used to supply software and computers to the customer's place of business, cloud computing frees the customer from having to invest in IT equipment and software licenses, and from the expense of maintaining and updating those assets over the years.