European Commission Releases Cloud Computing Service Level Agreements

Author:Ms Cynthia O'Donoghue and Kate Brimsted
Profession:Reed Smith

Back in 2012, the European Commission ('Commission') adopted the Cloud Computing Strategy to promote the adoption of cloud computing and ultimately boost productivity. In June 2014, the Cloud Select Industry Group – Subgroup on Service Legal Agreements published Standardisation Guidelines for Cloud Service Level Agreements ('Guidelines') as part of this strategy.

To achieve standardisation of Service Level Agreements ('SLAs'), the Guidelines call for action "at an international level, rather than at national or regional level", and cite three main concerns. Firstly, SLAs are usually applied over multiple jurisdictions, and this can result in the application of differing legal requirements. Secondly, the variety of cloud services and potential deployment models necessitate different approaches to SLAs. Finally, the terminology used is highly variable between different service providers, presenting a difficulty for cloud customers when trying to compare products.

A number of principles are put forward to assist organisations through the development of standard agreements, including technical neutrality, business model neutrality, world-wide applicability, the use of unambiguous definitions and comparable service level objectives, standards and guidelines that span customer types, and the use of proof points to ensure the viability of concepts.

The Guidelines also cover the common...

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