Cloud Computing: the Critical issues

Kiran Sandford

Head of IT Group

Mishcon de Reya

kiran.sandford@mishcon.com

+ 44 207 4407066

National Institute of Standards and
Technology (US) definition

A model for enabling ubiquitous, convenient, on-demand network access
to a shared pool of configurable computing resources (e.g. networks,
servers, storage, applications and services) that can be rapidly
provisioned and released with minimal management effort or service
provider interactions.

Overview

§  High on the corporate agenda

§  Different types of Cloud Computing  

§  Critical issues in contracts with a cloud supplier 

§  Key risks and challenges 

§  Security and data protection issues  

§  What makes this different from other services agreements





What is Cloud Computing

§  Delivering of IT services over the Internet

§  Software as a Service (SaaS)

§  Platform as a Service (PaaS)

§  Infrastructure as a Service (IaaS)





Software as a Service (Saas)

§  Remote hosting and management of software (e.g. email)

§  Standard product allowing a one to many model

§  May be most suited to SMEs

§  Hybrid models suitable for larger companies



Platform as a Service (PaaS)

§  Platform for third parties to host software to provide to customers

§  Suitable for smaller software vendors

§  E.g. Amazon web services, Apple, Google and Facebook



Infrastructure as a Service (IaaS)

§  Shared infrastructure resources (e.g. service and data centre facilities)

§  Storage

§  Processing

§  Useful for additional demand (cloud-bursting)

Cloud Computing Structure

§  Private Cloud – single tenant, private network, no shared resources

§  In-house IT department (customer owned, operated and managed data
centre)

§  Outsourced IT: customer owned, vendor managed

§  Public Cloud

§  External hosting: vendor owned – operated – managed. Example: co-
location data / computing centre



Benefits of Cloud Computing

§  Costs management / scaleability

§  Access anywhere anytime

§  Management of peaks and troughs

§  Elasticity



Risks

§  Standard terms

§  Integration

§  Lack of control

§  Potential for hidden costs

§  Quality -v- costs

§  Reliance on internet connectivity





Risks Privacy / Security

§  Practical issues

§  Data transfers

§  Data Protection issues

§  Security

§  Access to data

§  Security review

Negotiating the Contract

§  Defining the requirements

§  Vendor track record

§  Consider the rationale – is this right for your organisation?



Some Core Issues

§  Differences from software licensing

§  Standard agreements

§  May be room for negotiation in higher value / hybrid services

Key Operational Risks

§  Data protection / Backup

§  Business continuity / Disaster recovery

§  Privacy and security Auditing / Logging

§  Key contracting goals driven by objectives

§  SaaS - reliability of service for business critical applications essential

§  IaaS – flexible, accessible, scalable, computing power - critical

§  PaaS – reliability of platform critical with ability to control software
applications and data



Service Levels

§  Differences from standard licence

§  Response time / Performance and measurement

§  Storage, capacity

§  Metrics and remedies

§  Help desk

§  Security breaches

§  Consider levels of obligation

§  Remedies for SLA failures, service credits, fixed percentage or peered

Disaster Recovery

§  Critical as controlled by vendor

§  Consider location of back-up systems

§  Response time to restore



and if it goes wrong

§  Termination for convenience

§  Right to access data after termination and during contract

§  Intermission capacity



Thank you and Questions

Kiran Sandford

Head of IT Group

Mishcon de Reya

kiran.sandford@mishcon.com

+ 44 207 4407066