Legal Advice about Managed Services

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    ComputerWorld has a special report about ASPs — application service providers — and how they’ve transformed themselves in the software-as-a-service era. The article I’m most interested in pushing here is titled, “Legal Tips to Help Avoid MSP Pitfalls.” It’s a collection of brief essays by legal experts. The content in the stories is applicable for the most part of any services agreement, you might strike.

    There are three especially worth noting.

    First, “The MSP Contract: Work Visually,” has a useful idea for tracking who’s responsible for what — in the form of a graphical scope of work. Down the side, you list each function to be performed. Along the top, you specify the things to which each process is applied — geography, business unit, server, etc. At each intersection cell, you use a color-coded box to designate who’s responsible for performing that function. When something changes, you simply shift the row or the column or the color. Attorney Robert Zahler says this approach helps the parties “understand their relationship. It causes the parties to focus more on integrated, end-to-end processes rather than isolated towers of activity. It places greater emphasis on what should be done and leaves to the supplier the details of how that function should be implemented.”

    In “Hidden Traps in MSP Agreements,” attorney Lawrence R. Robins shares areas of concern that you should make sure you address in the contract you write with your managed service providers. These include privacy, IP rights and confidentiality.

    In “Four Legal Questions to Ask,” Peter S. Vogel advises asking: Who owns the data? Can you license the software? Does the vendor have backup contracts? Is the contract consistent with promises made? For each question he provides advice.