Friday, November 02, 2012

Hurricanes and Cloud Computing - the In-house Counsel Perspective

In the midst of Hurricane/Storm Sandy, many websites were down, including Bloomberg Law's, Huffington Post, and some for the federal judiciary. While you might think it's because those companies are based in or near New York City, the actual problem probably lies with the location where the websites are hosted.

Website hosting is big business, and a big concern of those companies whose primary business is online is uptime. For example, if you're Zappos and your business is online sales, if your website is inoperable for any reason, you are potentially losing millions of dollars in sales. You may also be losing revenue from any products you advertise on your website.

Why should you care (aside from missing out on important news and great deals on shoes)?

Well, if you're counsel working for an online business and you negotiate any network hosting deals, it's important to think about the legal implications of uptime requirements. Force majeure may be the first thought that comes to mind, but keep in mind other contract terms may be more significant from a remedies perspective. To brush up on the kinds of things you'll need to know, check out these library resources: