Information Technology Reference
In-Depth Information
7 Legal Issues in Grid and Cloud Computing
Davide M. Parrilli
7.1 Introduction: the Lawyer's Perspective about Grid and Cloud
Computing
A business scenario based on the adoption and implementation of Grid and Cloud
technology presents many legal issues that have to be taken into account by compa-
nies and individuals that plan to start a Grid/Cloud-based business. In general terms,
Grid/Cloud technology is not 'neutral', in the sense that it brings several particulari-
ties as regards, contractual and security profiles (Parrilli et al. 2008). In other words,
a contract between a Grid/Cloud provider and a customer is likely to be slightly
different from an agreement between a provider of a different technology (not based
on dispersed resources) and a client.
The legal issues that affect a Grid/Cloud-based business are many, and include,
just to mention a few, contract law, intellectual property rights, privacy law, taxa-
tion, etc. The aim of this chapter is that of providing the reader with some clari-
fications and guidelines as regards the most relevant legal issues that a typical
customer should take into consideration when reviewing the terms for the provi-
sion of Grid/Cloud services from a technology provider. Two moments will
be specifically analysed: (i) the contract, or contracts, signed by the customer
and the Grid/Cloud provider, i.e. formation, validity and enforceability of the
agreement(s); (ii) the contractual relationship following the signing of the agree-
ment, in connection with the liabilities of and the remedies at the disposal of
the parties. Special attention will be dedicated to security (and privacy) profiles,
which are supposed to be the Achilles' heel in Grid and Cloud computing. A
few comments will also be dedicated to the most relevant taxation issue. In other
words, we guide a typical customer in the process of entering into an agreement
with a technology provider and therefore we will follow the negotiations phase (if
any) and the signing of the contract. Furthermore, we will identify the risks under-
lying the contract and explain how these risks can be reduced or avoided. When
the agreement is ready for signature, our mission will end.
From a different perspective, then, the goal of the following pages is to show
how legal barriers for customers can be reduced, nevertheless taking into account
that these are heavily influenced by the business environment in which the Grid/
Cloud provider and the client operate. In other words, in business to business (B2B)
scenarios (this chapter does not address business to consumer - B2C - issues) the
client does not receive special protection from the law, in recognition of the prin-
ciple that businesses are normally in positions of equal strength during the nego-
