cloud contracting: the internet2 net+ way (178607552)

7/27/2019 Cloud Contracting: The Internet2 NET+ Way (178607552)

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EDUCAUSE ANNUAL CONFERENCE 2013

Cloud Contracting

with Services

Alan Fishel, Arent Fox LLP

Jerry Grochow , Internet2

Nancy Lynch, University of Wisconsin-MadisonThomas Trappler, UCLA

October 16, 2013



Cloud Computing Risk Mitigation

Slide contents © 2013 Thomas Trappler

Transitioning to the Cloud = Paradigm Shift

From: Technically Managed

“I build it, I maintain it.”

To: Contractually Managed

“Someone else is doing this for me,how do I ensure they’re doing it right?”





The question is:

How can we most effectively mitigate therisks associated with adopting cloud solutionsso as to maximize the benefits?





Contract Negotiation:“What do I get?”

Vendor Management:

“How do I ensure that I continue to get it?”

If it’s not in the contract,

don’t expect to get it.



• Internet2 works with Service Providers, university counsels

and cloud experts to craft a “Business Agreement”

• Multiple types of contracts to suit SP and university needs,

including direct and reseller

• Variations that allow Internet2 Partners (Regional RENs and

National RENs) to serve their participants

• Leverage “power of the community” and economy of scale to

negotiate favorable terms

• Reduced administrative process: “ready to sign” contracts!

Takes on the Burden of

Contracting for the Cloud



Cloud Service Lifecycle

• Sponsorship by I2 members

• Subscription by members andthrough regional and global

partners

• Designed by participatingcampuses, providers andInternet2

• All delivered at global scale,tailored to R&E needs, andbenefitting all participatinginstitutions.



NET+ Cloud Service Contracting Approach

“Internet2 NET+ Business Agreement” “Enterprise Customer Agreement”

“Service Terms of Use” for each service

ServiceProviderMgmt.

UniversityCounsels &

CloudSMEs

Internet2NET+Staff

andCounsel

Internet2 NET+

TemplateContracts

RevisedInternet2 NET+

TemplateContracts

• Higher Ed needs and wants• Contracting principles from

Higher Ed experience• Specific Higher Ed requirements



Service definition and service level agreement (SLA)

Compliance with laws of concern to the universitycommunity: FERPA, HIPAA/HITECH, state provisions

Data ownership, location, privacy and security

Liability provisions

Pricing: type, term, escalation

Termination provisions

Key Issues in Cloud ContractingAddressed by NET+ Templates



Successful cloud service engagement requires on-

going vendor management From Internet2

From participating universities

Successful cloud service engagement requires on-

going change management Within the university

With help from your peers, EDUCAUSE, and Internet2

But the contract can’t solve

everything!



Thomas Trappler, UCLA

* SLAs: how are they different in cloud agreements?

Alan Fishel, Arent Fox LLP

* Liability and termination – war stories

Nancy Lynch, Wisconsin-Madison

* View from the University Counsel

Let’s hear from our panelists



What’s a campus to do? Start NOW!

Create a campus strategy for internal &external cloud services.

Create a “cloud first” culture by partneringwith your legal and procurement teams, and

other key stakeholders. Restructure internalprocesses and policies with cloud in mind.

Develop positions that focus on Cloud Product

Management: Create new or repositionexisting positions to get started.



What’s a campus to do? Start NOW!

Develop a campus identity solution built onopen standards. Join the 300+ campuses inInCommon.org.

Support competition for services so there are

choices—but constrained, not unlimited choices.

Evaluate Internet2 NET+ opportunities.Examine your own portfolios and consider

which projects could benefit from NET+ scale,attend NET+ webinars.



Succeeding in the cloud takes morethan technology…

Cloud Proud Program to provider aframework to help accelerateadoption of cloud services

SKILLS DEVELOPMENT

BEST PRACTICES

TEMPLATES

POSITION DESCRIPTIONS

COMMUNITYDEVELOPMENT: CLOUD ELEMENTS

TRAINING: RISK CONTRACTS



How Can I Learn More?

To learn more about

Internet2 NET+ agreements

http://www.internet2.edu/netplus/

[email protected]



AppendixThe following slides present current information as of thedate of this presentation. As cloud contracting continuesto mature and change, interested parties are encouraged

to contact Internet2 NET+ for the latest updates.



Contract “per service”

List service features in exhibit

Lists SLA specifics in exhibit

Required audit of data center security

Product “Road Map” committee of university

representatives

Service Definition and SLA



FERPA: designation as “school official”

HIPAA/HITECH: Participating Service Vendors to signa Business Associate Agreement acceptable touniversities

State laws: separate addenda as needed

Compliance



Ownership restriction

Location within the US if appropriate

Strict privacy provisions, including transfer of legalnotices

Data security policies and data breach liability

provisions

Data Concerns



New approaches to pricing for many service

providers: Multi-year site licenses

Pricing by size of institution in tiers

Elimination of network fees for cloud services using

the Internet2 network Limited escalation

Ability to transfer from existing pricing plans

Pricing

Internet2 NET+ Takes on the B rden of



• Internet2 works with Service Providers and university counsels

and cloud SMEs to craft a “Business Agreement”

• Multiple types of contracts to suit SP and university needs:

• Type A – Internet2 assists but contract is between university and SP

• Type B – contract between university and Internet2 (the Box model)

• Type R – Internet2 assists but contract is between univeristy and reseller

• Variations of above that allow Internet2 Partners (Regional RENs and

National RENs) to serve their participants

• Leverage “power of the community” and economy of scale to

negotiate favorable terms• Reduced administrative process: “ready to sign” contracts!

Internet2 NET+ Takes on the Burden of

Contracting for the Cloud




• Internet2 works with Service Providers and university cloud

SMEs to craft a payment process that ensures that best price ispassed through and administrative costs are covered.

• Multiple payment processes to suit different SP and university

needs:

• Type A – contract specifies I2 member price; I2 paid admin fee by SP

• P-A: SP bills Partners who bill their customers including their fee.

• Type B – contract specifies I2 member price; I2 paid admin fee by SP

• P-B: Partners bill customers for I2 member price plus their fee.

•

Type R – Reseller publishes I2 member price; I2 paid admin fee byreseller

• P-R: TBD.


Payment Processing for the Cloud



NET+ Pricing Terminology

NET+ Service Provider Net Negotiated Price (SPNP) = price dueto Service Provider (SP) including all community volumediscounts, not including any overhead or processing costs

NET+ Members Price (MP) = price paid by Internet2 members =SPNP+I2 administrative fee to cover costs

NET+ Non-members prices (NMP) = price paid by non-member

Qualified Organizations serviced by Internet2 = MP+ markup Net+ Partner Price (PP) = price paid by NET+ Regional or NREN

Partner either to SP or Directing REN = negotiated amount(typically the MP)

NET+ Partner Members Price (PMP) = price paid by Partner Qualified Organizations serviced by NET+ Regional or NRENPartners = MP + Partner costs

NET+ Contractual Relationships




– Type A (for “Assisted”)

ServiceProvider

QualifiedOrganization*

Faculty,students, staff

Enterprise Customer Agreement

Terms of Service Agreement

BusinessAgreement

2

1

3

1. SP invoices QO at MP or NMP2. QO pays MP/NMP to SP3. SP pays I2 admin fee

* Qualified Organization defined by BA with each SP





– Type B (different payment approach)

ServiceProvider


BusinessAgreement

Faculty,students, staff

Terms ofService Agreement

2

3

1

5

4

1. SP invoices I2 at MP or NMP2. I2 invoices QO at MP or NMP3. QO pays MP/NMP to I24. I2 pays MP/NMP to SP5. SP pays I2 admin fee







– Type R (for “Reseller”) [required by some large service providers]

ServiceProvider

Value AddedReseller (VAR)

BusinessAgreement

End-user

BusinessAgreement

Terms of Service Agreement


Enterprise Customer Agreement2

13

1. VAR invoices QO at MP2. QO pays VAR3. VAR pays I2 admin fee


l l h




– Type I-B (for “International Partners”)

ServiceProvider

DIRECTING

REN**

Partner

BusinessAgreement

End-user

Partner Agreement

Terms ofService Agreement

Partner Qualified

Organization*

5

1

6

1. SP invoices DR at PP2. DR invoices Partner at PP3. Partner invoices PQO at PMP4. PQO pays PMP to Partner 5. Partner pays PP to DR6. DR pays PP to SP7. SP pays DR admin fee

3

2

4


7

** Directing REN may be Internet2 or an international partner REN

* Partner Qualified Organization defined by Partner Agreementbetween Partner and I2

F Vi I 2 NET P hi



Future View: Internet2 NET+ Partnerships

The GlobalPartnersProgram:

Partnering withInternational

NRENs

The Internet2 Member

Community:R1-R2-R3

NET+

Other I2Affiliates

The RegionalPartnersProgram: Extending

benefits to morecommunities (K-

12, Comm.

Colleges, Other Organizations)

cloud contracting: the internet2 net+ way (178607552)

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