Which detrimental effect can arise from a poorly negotiated cloud service contract?

A poorly negotiated cloud service contract can lead to several detrimental effects, one of which is unfavorable terms. This situation arises when the contract may include clauses that do not adequately protect the customer's rights, impose excessive liabilities, or result in unexpected costs. For instance, the lack of clarity on service levels, data ownership, compliance responsibilities, or penalties for service failures can create a scenario where the organization is at a disadvantage.

Unfavorable terms may not only limit the organization's operational flexibility but can also complicate dispute resolutions. In this context, organizations could face additional costs and risks that were not anticipated at the outset. Additionally, unfavorable terms in the contract can make it difficult to change vendors or adjust services as organizational needs evolve.

While lack of necessary services, vendor lock-in, and malware are valid concerns associated with cloud contracts, the scope of unfavorable terms encompasses many aspects of contract negotiation that can directly impair an organization's ability to leverage cloud services effectively, making it a critical area of focus during the contract negotiating phase.