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Principle 5: Contractual terms shall not restrict or discriminate for customer’s choice of cloud provider, outsourcing partner or hardware platform

Software is the driving force behind open innovation and digital transformation. As a result, each company has become wholly or partly a software company. Once every organization had an IT department, now every department has an IT organization. Software has become mainstream. Software can be built or purchased ready-made, software can run on various hardwares that may or may not be set up inside or outside company premises, while those systems can be managed by the company itself or by third parties.

Business users associations Beltug, Cigref, CIO Platform Nederland and VOICE call for a balanced cloud market: 11 fair principles to unleash Europe’s digital potential.

28 / 07 / 22

Beltug Fair Principles - Principle 5, Cloud contracts

 

Today business software and cloud services providers are present everywhere and occupy a dominant position. In some companies, large or small, local or global vendors have even acquired a monopoly position that they – consciously or unconsciously – abuse. However, a responsible leadership attitude towards the customer should be more applicable here:

  • Customers having purchased or purchasing software, shall have the possibility to deploy and use the software on the platform of choice or with the cloud provider of choice. The terms and conditions, including commercial conditions, shall be non-discriminating and uniform between running workload in the cloud, on premise or in any hybrid setup with comparable workload and performance. If the technology and workload is comparable and common, the customer shall have freedom of choice.
  • Customers who are moving on premise workload to cloud providers should achieve a cost neutral shift that safeguards the investment on comparable performance and workload. Cloud infrastructure has the same or comparable computing power and has the same limitations as on premise workload, with the sole exception that the underlying hardware is owned by a third party.
  • Customers should not be at the mercy of the vendor for what they can use and should be free to run a service elsewhere. Neither software vendor nor cloud provider should limit or block this freedom of choice.

Business software and cloud services vendors are therefore all subject to the fifth principle; contractual terms shall not restrict or discriminate for customer’s choice of cloud provider, outsourcing partner or hardware platform.

  • cloud
  • infrastructure
  • international
  • Software

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Business users associations call for a balanced cloud market: 11 fair principles to unleash Europe’s digital potential

Most organisations highly depend on their cloud solutions. However, the imbalance in the relationships between cloud providers and their business customers leads to unfair practices. The upcoming European regulations offer several possibilities to improve the situation....

Principle 4: Contractual terms and conditions shall be clear, unambiguous and not unilaterally changeable

“Simplicity is the ultimate sophistication” (Leonardo da Vinci) and “In der Beschränkung zeigt sich erst der Meister” (Johann Wolfgang von Goethe) are statements by wise Europeans but apparently still unknown by the relatively young business software...

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