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    DISCLAIMER

    This discussion does not constitute legal advice and this presentationdoes not establish an attorney-client relationship. But you knew thatanyway.

    These remarks do not necessarily reflect the position of the CloudSecurity Alliance or the New York Metro Chapter of the Cloud SecurityAlliance, or of any of the clients of Laberee Law PC.

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    SERVICE LEVEL AGREEMENTS

    What is a Service Level Agreement.

    What Service?

    What Level?

    Is it an agreement?

    Is there just one SLA out there?

    So . . . we just have to find it, sign it and we are done? . . . Right? . . . .Right? . . . .

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    CONSTITUENCIES . . .

    I.T. Department

    Enterprise / Company

    Companys Customers

    Companys Customers Customers

    Regulatory Bodies / Government

    Companys Employees

    Risk Management group within Company

    Companys Owners

    Companys Management

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    . . . . AND WHAT THEY CARE ABOUT

    Delivering good service. Jobs and budgets. Technical success and efficiency.Security.

    Perform core business functions with maximum profit and long-term stability andvalue. Usually NOT I.T.

    Getting service - - better, faster, cheaper. Often NOT I.T.

    Effectiveness. Results. Avoidance of delay, loss or other pain. Removed fromimmediate tactical goals of Companys IT department. NOT Companys ITproblems.

    Compliance. Privacy. Protection of Network and shared resources and the

    commons, including security. Enforcement of non-I.T. laws.Support and resource. Keeping jobs and looking good. Privacy.

    No losses, no lawsuits, no increase in compliance costs, no insurance claims.

    Short- and mid-term Profits and long term value.

    Employment and compensation. Company performance. Usually I.T. as a means,not end.

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    I.T. Department

    Enterprise / Company

    Companys Customers

    Companys Customers

    Customers

    Regulatory Bodies /

    Government Companys Employees

    Risk Management groupwithin Company

    Companys Owners

    Companys Management

    Delivering good service. Jobs and budgets.Technical success and efficiency. Security.

    Perform core business functions with maximumprofit and long-term stability and value. UsuallyNOT I.T.

    Getting service - - better, faster, cheaper. OftenNOT I.T.

    Effectiveness. Results. Avoidance of delay, loss orother pain. Removed from immediate tactical goalsof Companys IT department. NOT Companys ITproblems.

    Compliance. Privacy. Protection of Network andshared resources and the commons, including

    security. Enforcement of non-I.T. laws.

    Support and resource. Keeping jobs and lookinggood. Privacy.

    No losses, no lawsuits, no increase in compliancecosts, no insurance claims.

    Short- and mid-term Profits and long term value.

    Employment and compensation. Company

    performance. Usually I.T. as a means, not end.

    SLA CONSTITUENCIES GAME- - MIX AND MATCH!

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    SO WHAT DOES AN SLA USUALLY COVER

    Techies embrace them . . . lawyers love them . . . sales staff hate them . . .customers ignore them . . . . so . . . .

    Intended to be legally binding agreement

    Establish uptime and service levels for one business to provide cloud-basedservice and capacity to another business

    What service?

    What level? Level of what?

    Who drafted this SLA anyway?

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    SLAS HAVE ABOUT 7 ELEMENTS, OR NUGGETS, WHICH BEAR

    CONSIDERATION WHEN PREPARING, REVIEWING, EXECUTING,

    PERFORMING UNDER OR ALLOCATING RESPONSIBILITY UNDER:

    1. Identification ofparties. Who will be legally bound. Who is the provider andwho is the recipient?

    2. Term; Length of time during which the parties are bound.

    3. Performance metrics.

    4. Defined terms. Infuses the performance metrics.

    5. Exceptions or failures of performance. Remediation, correction ( . . . butrarely remedies or damages in the lawyers sense).

    6. Process for identifying exceptions or failures and prosecuting remediation orcorrection and claims-making.

    7. Exclusions. Re-allocation of responsibility. Not-my-fault.

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    Consider the reliance,

    the comfort thatusers of contracts,including SLAs, get- - perhaps unduly -- from nuggets likethese in their

    contracts . . . .

    (all terms in airquotes with asmart-alec look):

    Core components

    Best efforts

    Industry standard Best of breed

    Best practices

    Error Rate

    Request (or someother term forcustomer trying toget stuff

    Material . . .Substantial

    LINGO DANGERS

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    GENERAL ARCHITECTURE OF A CLOUD PROVIDER SLA.

    Description of Services; some defined terms

    Reference to (if not description of) maintenance, scheduled downtime,notice of maintenance.

    Providers commitment to uptime

    Reporting

    Remedies - - often too grand a word - - it may be simply a credit for lossof uptime. Note it may not kick in unless customer asks for it. (How

    does customer know?) Calculation of creditExclusions: customer equipment or software; customer connectivity;maintenance and similar interruptions after notice; Customer-relatedhuman error; old stand bys like force majeure.

    Special contract and liability exclusions: consequential, incidental andpunitive damages exclusions.

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    IF YOU WOULD LIKE TO TALK IN MORE DETAIL ABOUT SLAS. . . .

    Service Level Agreement

    Network Data Center Infrastructure

    Cloud Server Hosts

    Migration

    Credits

    Network

    Data Center Infrastructure Cloud Server Hosts

    Migration

    Definitions

    Limitations

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    TERMS OF USE TOPICS

    Cloud Terms of Service

    Defined Terms [provider]s Obligations and [customer]s Obligations Access to the Services Access to Data Unauthorized Access to Your Data or Use of the

    Services Disclaimers

    Term Fees Limitation on Damages Indemnification No High Risk Use

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