Cloud-based services solve many problems, but contract complexity isn't one of them. As cloud services continue to proliferate, veteran negotiators say, businesses must build out or bring in the expertise required to avoid costly contract mistakes. Contract language is very different when you're leasing rather than owning the software, Wang says.
One great way to get up to speed: Attend workshops or bring in an expert to work alongside your own contract experts. Keep in mind that as the number of cloud contracts continues to rise, so too will the cost of failure. Cloud contracts represent an opportunity for a fresh start, says Wang. Perpetuating the mistakes enterprises have made with their on-premises enterprise software should not be an option.
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