A number of studies I’ve recently read indicate that more enterprises will use cloud services in 2013 than ever before. This fact is not lost on many of my software vendor clients, who are transitioning many of their on-premises products into cloud-based offerings.
The problem many of these vendors are facing is the inability to address data privacy and security demands placed upon them by their customers due to the weak contractual protections offered by the vendor’s hosting providers. As a result, the time and cost savings expected by leveraging the cloud model are lost by extended contract negotiations between the vendor, customer, and hosting provider.