Contractual obligations

Let's imagine your company uses a cloud-based IT service and pays the provider $100,000 per year. Now let's imagine that cloud provider suffers a security breach, and your data is compromised. The total cost to you (notifications, remediation, regulatory fines) is $1 million.

Think your cloud provider is going to cover those costs?

The answer to this very important question lies buried in the details of your contract with the service provider. You remember signing that contract, right? Or at least carefully reviewing it before the CIO signed it?

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This story, "Contractual obligations" was originally published by CSO.

Copyright © 2011 IDG Communications, Inc.

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