This continues to be a touchy subject and I want to start opening the discussions around it because in many ways, I feel that business owners make some assumptions about the cloud that are simply not true. For me, a client asked me whether they should host their backup solution or not (the software vendor offered both options) and I told them to only back it up using their existing storage and data centers vs. the vendor. When challenged on that fact, I simply downloaded a portion of that agreement which I want to share with everyone.
“TO THE FULLEST EXTENT PERMITTED BY LAW, IN NO EVENT WILL VENDOR, ITS AFFILIATES, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS BE LIABLE FOR (A): ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, COVER OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, REVENUE, GOODWILL, USE OR CONTENT) HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY, INCLUDING, WITHOUT LIMITATION, CONTRACT, TORT, WARRANTY, NEGLIGENCE OR OTHERWISE, EVEN IF VENDOR HAS BEEN ADVISED AS TO THE POSSIBILITY OF SUCH DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE AGGREGATE LIABILITY OF VENDOR AND ITS AFFILIATES, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS, RELATING TO THE VENDOR PRODUCTS AND SERVICES WILL BE LIMITED TO the amounts actually paid to VENDOR by YOU in the twelve (12) month period immediately preceding YOUR formal written notice of the claim for liability hereunder. All claims that YOU may have against VENDOR will be aggregated to satisfy this limit and multiple claims will not enlarge this limit. THE LIMITATIONS AND EXCLUSIONS ALSO APPLY IF THIS REMEDY DOES NOT FULLY COMPENSATE YOU FOR ANY LOSSES OR FAILS OF ITS ESSENTIAL PURPOSE”
President and Enterprise Architect