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GLOSSARY

Cloud computing definition

Published by a LexisNexis Commercial expert

What does Cloud computing mean?

Computer network diagrams have traditionally represented the internet by using a picture of a cloud. This is because the internet’s 'location' is meaningless and vague. The internet’s function is solely to convey packets of data, unchanged, from one location to another specified location. How it gets there, and the route it takes, are functionally irrelevant. The term has expanded to mean computing services provided via the internet.

Often, the user will be unaware exactly where those services are carried out (ie the actual physical computer which is running the service). This may not matter if you are using a reputable search engine, but clearly has important legal consequences.

Commercial

Often, the

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Key issues in IT outsourcing

IT outsourcing is the transfer of information technology processes or services by a customer to a third party supplier, instead of the customer performing the IT functions itself. The term encompasses a wide range of specific types of transaction, each with their own distinct set of challenges and issues. The contracting for each type of IT outsourcing must be carefully considered by customers, suppliers and their respective advisers in order to reach a good deal for all, both at the commencement of the transaction and as the technology matures and evolves over the transaction’s term.This Practice Note covers the following issues:•Using cloud as part of an outsourcing transaction•Contractual issues in cloud•Multi-sourcing and SIAM•Business continuity and disaster recovery services•Managed services•Data centres and data hosting•End-user computing and desktop outsourcingIT outsourcing, when done correctly, can assist organisations to reduce the investment of financial and human resources spent on IT operations and infrastructure, and allow these resources to be allocated to strategic business initiatives elsewhere. Customers may want a variety of IT services to...

Tax considerations for the life sciences sector

Tax considerations for the life sciences sector This Practice Note provides an overview of some of the tax issues that are particularly relevant to a company operating in the life sciences sector. Such companies may include pharmaceutical, medical technology, biotechnology companies etc. In particular, it considers, among other things, corporation tax issues such as research and development (R&D) reliefs and the patent box; and cross-border issues such as transfer pricing and investment reliefs. Brexit impact On 31 January 2020, the UK ceased to be an EU Member State and entered an implementation period during which it continued to be treated by the EU as a Member State for many purposes. This ended on 31 January 2020, after which EU law and the jurisdiction of the Court of Justice of the European Union largely ceased to apply to the UK. The trading relationship between the UK and the EU thereafter is governed by the EU-UK Trade and Cooperation Agreement. State aid As a result of the UK’s departure from...

Discover our 7 Practice Notes on Cloud computing

Escode Escrow as a Service Scale Agreement (Multi Customer Deposit Account)

Escode Escrow as a Service Scale Agreement (Multi Customer Deposit Account) Software escrow Escrow is the process of two or more parties placing property or instruments in the hands of a trusted third party (an ‘escrow agent’). The escrow materials are released to one of the parties following an agreed release or trigger event, such as satisfaction of that party’s obligations or failure of another party’s obligations. Software escrow is a common method of protecting software licensors and licensees. Licensors are reluctant to hand over source code and commercially-sensitive materials about the design of their software. However, the licensee may be uncomfortable with the risk of being unable to maintain or support the software in circumstances such as the licensor becoming insolvent or defaulting on their obligations. Placing those materials with an independent third party in escrow to be released to the licensee following specified licensor or supplier failures is an established solution to these concerns. For more on software escrow generally, see Practice Note: Software escrow. Traditional software...

A-Z of cyber threats—for staff

A-Z of cyber threats—for staff Threat What is it? Our defensive measures Advanced persistent threat (APT) Attackers gain unauthorised access to a system and remain undetected for a prolonged period of time. They may carry out unauthorised transfers of sensitive data.Even when they are detected, they may leave several ‘backdoors’ open so they can return. We ensure users are aware of the risk and of basic account security procedures.We use firewalls to inspect and filter traffic.We use antivirus software. Botnet Collection of infected computers remotely controlled by a hacker.The hacker can share or sell access to the computers to other cyber criminals to be used to distribute spam or overload a system. See Malware and Hacking Chain letter An email that encourages the user to forward copies to other people.Not a security threat but can waste time and slow down mail servers. We ensure users know not to forward chain letters or hoaxes.We try to stay informed about chain letters and hoaxes. Commercial identity theft Bogus organisations...

Dive into our 6 Precedents related to Cloud computing

TMT weekly highlights—1 May 2025

Welcome to this week’s edition of the TMT weekly highlights: a hand-picked summary of news analysis, updates and new content from across the technology, media and telecoms sectors. These highlights focus on key topics including new technologies, software, cloud computing, internet, outsourcing, music, film & television, publishing, defamation and telecoms.

AI model providers see European Commission’s early view on GPAI rules

MLex: AI model providers saw the European Commission publish its preliminary approach to the EU AI Act’s rules for general-purpose AI (GPAI) as part of a public consultation meant to inform upcoming guidelines on this matter. The preliminary approach gives insights into the Commission’s current understanding of key concepts, including setting compute thresholds for determining whether a model is covered under the AI rulebook and when legal duties shift to downstream players. The working document provides examples for when a model is considered placed on the EU market, methodologies for calculating computational resources, and explains how a code of practice that is currently being developed is meant to support compliance with the EU AI Act.

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