Legal Issues in Grid and Cloud Computing

Abstract

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 companies 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 particularities 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, taxation, etc. The aim of this chapter is that of providing the reader with some clarifications and guidelines as regards the most relevant legal issues that a typical customer should take into consideration when reviewing the terms for the provision 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 agreement, 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 underlying the contract and explain how these risks can be reduced or avoided. When the agreement is ready for signature, our mission will end.