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Cloud Services Agreements

Can I negotiate AWS or Google contracts?

It's hard for small clients, but Enterprise clients can often negotiate custom terms via an Addendum.

Who is liable for a data breach?

Legally, the Controller (company) is liable, but contracts can establish recourse against the Provider for negligence.

What is SLA?

SLA (Service Level Agreement) defines service quality metrics, such as 99.9% uptime guarantee.

Must servers be in Georgia?

No, but cross-border personal data transfer is regulated and requires adequate protection safeguards.

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2 min

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Cloud Services Agreements regulate the relationship between businesses and cloud providers (AWS, Azure, Google Cloud, local hosting). The massive adoption of cloud technologies (SaaS, PaaS, IaaS) has created a new legal reality where company data is physically stored on third-party servers, often in other jurisdictions. Standard "Click-through" agreements are often one-sided and fail to protect client interests regarding data loss, service outages, or privacy breaches. The Law of Georgia on Personal Data Protection strictly regulates cross-border data transfers and obliges companies to have appropriate guarantees in contracts with providers.

Legal.ge offers IT law specialists who will help negotiate and audit cloud contracts. Our goal is to ensure data sovereignty, service continuity, and fair liability allocation.

What does the Cloud Contracts Service cover?

The service ensures protection of client interests:

  • SLA (Service Level Agreement) Analysis: Checking uptime guarantees and financial compensation mechanisms (Service Credits).
  • Data Localization and Transfer: Determining where data is physically stored and whether it complies with Georgian legislation.
  • Security Standards: Defining provider obligations regarding cybersecurity (encryption, access control).
  • Exit Strategy: Creating conditions for painless data migration upon contract termination (avoiding Vendor Lock-in).
  • Liability Limitation: Negotiating liability caps for damages.

Common Real-World Scenarios

Risks in cloud services:

  • Data Loss: The provider's server crashed, and data was deleted. Standard contracts often absolve the provider of liability.
  • Price Hike: The provider unilaterally increased the tariff.
  • Downtime: Business halted for 2 days due to server outage. Compensation under SLA is only 10%.
  • Intellectual Property: Who owns the data and metadata created in the cloud?

Legal Framework: Data Processing

Legally, the cloud provider is considered a Data Processor. The client (company) remains the Controller. It is essential to sign a "Data Processing Agreement" (DPA) defining the provider's security obligations.

Step-by-Step Service Process

  1. Audit: Studying provider's standard terms.
  2. Risk Map: Identifying critical gaps.
  3. Negotiation: Adding an Addendum or changing terms.
  4. Monitoring: Controlling performance.

Why choose a specialist on Legal.ge?

Cloud technologies drive business, but a bad contract can be a brake. Lawyers on Legal.ge will help you balance technological benefits with legal security.

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