DATA CENTERS

  • 07/17/2014
    8:06 AM
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8 Gotchas Of Technology Contracting

IT projects often involve multiple legal contracts for technology and services. Avoid these "gotchas" to ensure smooth agreements and relationships.

Comments

Helpful!!

This is a great article for business folks to review so that they are making sure that they are using the right agreements, structuring the right deals and best protecting themselves! 

Re: Helpful!!

Lindsay, thanks for your comment. I agree this is really practical advice. Especially because for technical projects, often the people making the agreements aren't aware of all the legal details that should be covered. I know I've been in that position before and signed a contract I wasn't 100% sure of :P

Practical tips

This is clear, comprehensive contract guidance. There are so many ways organizations can trip up when it comes to contracts. I like the advice about having a written change mangement process to combat scope creep, and also the tip on avoiding the "legal Bermuda Triangle." 

cloud contracts

#7 and #8 seem particularly relevant for cloud service contracts. Having an agreement for what happens to the data when the contract is ended can be something organizations overlook. 

Re: cloud contracts

Agreed, the SLA is where all the action takes place, this is why it is important to have all aspects covered. Create a blank SLA and go through points 1 to 8, once point 8 is complete, review the entire SLA again to find conflicting situations.

If the Cloud service provider is a large player that delivers services to SMB, then the SMB might not have the necessary scale to negotiate a change. In this case, the client can begin by reviewing the SLA and enable only those functions that are required. The plus point is that a client might find a function that they did not know existed. Often times, it is best to deal with a large provider, if things become complicated for the business to handle, then a contractor can be hired.  

Re: cloud contracts

Brian, you raise an important point about SMBs that may not have the resources for full contract negotiation. I also wonder how often organizations run into "click wrap" agreements that don't leave room for changes.