Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Cloud computing definition

What does Cloud computing mean? Cloud computing describes the provision of computing resources (such as infrastructure, platforms and software—often referred to as IaaS, PaaS and SaaS) over the internet by a third‑party provider, on an on‑demand, scalable, multi‑tenant basis. The term originated from network diagrams depicting the internet as a “cloud”, but in legal practice it now refers to remote hosting and delivery of IT services. It is a descriptive expression rather than a single statutory term, though specific regimes (for example the UK’s NIS Regulations and Irish/EU NIS framework) define “cloud computing service” for cybersecurity oversight. Usage and legal issues are broadly consistent across...

UK cloud services: legal, regulatory and contractual issues for B2B arrangements, including due diligence, service descriptions and SLAs, data protection and security, IP, liability, TUPE, termination, and governing law

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Practice notes

This Practice Note reviews the principal legal and commercial considerations for cloud services, including:

Due diligence
Contract documents
Service description
Service levels
Fees
Data protection
Data portability and backup
Security
Record keeping and audit rights
Compliance with laws
Intellectual property
Supplier liability for content
Liability under the contract
Application of TUPE
Variation of terms
Suspension and termination rights
Business continuity and disaster recovery
Governing law and jurisdiction
Export control laws
Sector-specific regulation and guidance
International laws

For an outline of fundamental cloud concepts and further context, see Practice Note: Cloud computing—introduction. For analysis of laws relevant to cloud services across multiple worldwide jurisdictions, see Practice Note: Lexology Panoramic: Cloud Computing.

This note is primarily directed at business-to-business cloud arrangements. Where suppliers provide services to consumers, extra factors will arise—see: Trading with consumers—overview.

Due diligence

Due diligence is an early and significant stage in any cloud engagement—a vital step for customers given the potential lack of meaningful leverage over contractual terms (see: Contract documents below)...

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Web page updated on 21/05/2026

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