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Conclusion: Cloud computing is not a new environment, merely the extension of a number of technologies that support IT outsourcing (bureaux, ASPs, SaaS, IaaS, PaaS). Cloud computing is technology-driven but will be and is likely to become “the next disruptive technology” in sourcing. Rightly or wrongly, many have been jumping on the cloud bandwagon because they’ve been driven to reduce costs. However, many potentially significant legal problems and their consequences have yet to be addressed. These legal issues extend beyond, and can be more complex than those that apply in traditional outsourcing agreements. Organisations considering outsourcing business applications to cloud computing must consider all relevant legal challenges at the same time as they explore the technologies.

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