IT providers warned against a one-size-fits-all approach

IT support service providers in a number of different fields are increasingly having to offer more flexible and personalised packages to their clients, a study has shown.

New research carried out at Queen Mary, University of London, found that companies providing IT services, sometimes via the cloud, are having to realise that one size does not necessarily fit all.

What is increasingly happening, according to the research, is that providers are negotiating contracts in order to better meet the needs of their clients, thus minimising operating risks and addressing any legal compliance obligations.

The research was mostly based on in-depth interviews with global and UK cloud providers as well as cloud users, law firms and a number of other market players.

The six most negotiated types of cloud contract terms were provider liability, service level agreements, data protection and security, termination rights, unilateral amendments to service features and intellectual property rights.

Professor Christopher Millard, lead academic on the Cloud Legal Project, said: "These are the key contractual issues of concern to users in the cloud market at this relatively immature stage of cloud adoption.

"To remain competitive, providers may have to be more aware of user concerns, more flexible in negotiations, and more willing to demonstrate the security and robustness of their services."

There are signs of wider market development too, the research suggests.

Changes made to plans because of users' requirements have been heeded and have seeped into the mindset not only of the main cloud providers but also those in the middle of the market.

Regulatory action has also been predicted to have an upwards change on the consumer market.

Kuan Hon, a research consultant with the project, said: "The findings suggest that more customer-friendly terms are being demanded by large cloud users such as governments and financial institutions."

The main outcome of the research was the suggestion that multiple approaches are now beginning to emerge.

This means a fragmentation of the market with a range of cloud services, different contractual terms and different pricing levels.

It also means that providers will need to embrace standards and certifications which aid legal certainty and compliance.

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