Cloud computing: bring your contracts up-to-date

Cloud computing can be described as a concept whereby various components of a computer system are connected to each other and can be consulted by a user via the internet. However, a clear definition cannot be simply given. What is clear is that cloud computing needs to be viewed from another legal viewpoint than that of classic IT contracts.

Flexibility

Cloud computing has the advantage of allowing users to use services of an ICT service provider in a flexible manner via the Internet. The flexibility means that if the user needs more capacity, that capacity can be supplied in a simple manner, with extra calculating power and storage capacity on demand. The flexibility is achieved by using a link between ICT networks, for example data centres which can be called in according to one’s needs.

Privacy aspects

Cloud computing requires another legal approach than the classic "static" IT contracts. Particularly privacy aspects require special attention, in view of the fact that data management is often no longer carried out by a single organisation, and data are generally stored in various places in the cloud.
European and Dutch privacy regulations play an essential role in the processing of data if those data also contain personal data. This is frequently the case, as on the grounds of the Dutch Personal Data Protection Act [Wet Bescherming Persoonsgegevens], personal data are all data which can be used to identify a person. When personal data are processed (by which storage is also to be understood) privacy legislation must be observed. Those rules are strict and violation is subject to heavy penalties. In this regard, it is best and may even be a legal obligation to make detailed agreements on the mutual responsibilities between a supplier and a customer with regard to the handling of privacy-sensitive data. Insight must in any case be given on which data are processed, where they are stored and whether there they are properly protected.

Be prepared for the future

Many people believe that cloud computing is the thing of the future. The European Union is currently paying special attention to privacy aspects. It is only a question of time before the European Committee will start to involve itself with the issue. This will generally mean new legislation. However, this stage has not yet been reached. This does not mean that suppliers should rest on their laurels. Suppliers will have to pay special attention to the legal aspects of cloud computing, among other things by ensuring that their contracts are legally up-to-date. The general tenet is that prevention is better than cure. We are happy to advise you on the legal aspects of cloud computing.