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Cloud Hosting Agreement

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CLOUD HOSTING AGREEMENT

This Cloud Hosting Agreement (the "Agreement") is entered into as of Effective Date: between Client Name: and Provider Name: .

Recitals

WHEREAS, Client desires to obtain cloud hosting services, technical support and related services for certain applications, systems and data; and

WHEREAS, Provider is engaged in the business of providing secure cloud hosting, infrastructure, maintenance and support and represents that it has the necessary expertise, personnel and equipment to provide such services in accordance with this Agreement; and

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

Scope of Work

Service Levels and Support

Provider will use commercially reasonable efforts to achieve a monthly uptime availability of percent for the hosted services, measured on a rolling monthly basis. If Provider fails to meet the uptime commitment, Client may be entitled to service credits as set forth in the Service Level Addendum attached hereto or described in the Scope of Work. Service credits, if any, shall be Client's sole and exclusive remedy for service unavailability.

Payment Terms

Client shall pay Provider the fees set forth below in consideration for the services. Fees are non-refundable except as expressly provided in this Agreement.

All amounts due under this Agreement are exclusive of taxes. Client shall be responsible for all taxes, other than taxes based on Provider's net income.

Term and Termination

The term of this Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated as provided herein.

Either party may terminate this Agreement for material breach by the other party if the breach remains uncured for the notice period set forth above. Either party may terminate immediately for insolvency or bankruptcy of the other party. Upon termination, Provider will, at Client's written direction and subject to payment of outstanding fees, return or securely delete Client Data in accordance with the Data Return and Deletion provisions below.

Confidentiality

Each party acknowledges that it may receive Confidential Information of the other party. "Confidential Information" means any non-public information designated as confidential or which should reasonably be understood to be confidential given its nature and the circumstances of disclosure, including Client Data, business plans, security measures and pricing. Each party agrees to (i) use Confidential Information only for the performance of this Agreement; (ii) restrict disclosure to those employees, agents or subcontractors with a need to know and who are bound by confidentiality obligations at least as protective as those herein; and (iii) take reasonable measures to protect Confidential Information from unauthorized access, disclosure or use. Confidential Information does not include information that is or becomes publicly known through no fault of the receiving party, is rightfully received from a third party without restriction, or is independently developed without use of the disclosing party's Confidential Information.

Data Security and Data Ownership

Client retains all right, title and interest in and to Client Data. Provider will maintain and implement administrative, physical and technical safeguards reasonably designed to protect the confidentiality, integrity and availability of Client Data, including industry-standard encryption for data in transit and, where applicable, at rest. Provider shall promptly notify Client of any actual unauthorized access to Client Data of which Provider becomes aware and shall cooperate in remediation and notification efforts as reasonably required.

Limitations of Liability; Indemnification

EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT, GROSS NEGLIGENCE, INDEMNIFICATION OBLIGATIONS, OR EITHER PARTY'S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF BUSINESS, OR LOSS OF DATA), EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE AGGREGATE LIABILITY OF PROVIDER ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES RECEIVED BY PROVIDER FROM CLIENT UNDER THIS AGREEMENT IN THE PRIOR TWELVE (12) MONTHS.

Provider will indemnify, defend and hold Client harmless from third-party claims arising from Provider's gross negligence or willful misconduct in the provision of the services. Client will indemnify, defend and hold Provider harmless from third-party claims arising from Client Data or Client's use of the services in violation of law or this Agreement.

Assignment and Subcontracting

Provider may engage subcontractors to perform services, provided that Provider remains responsible for the subcontractors' performance and compliance with this Agreement. Neither party may assign this Agreement without the prior written consent of the other, except to an affiliate or in connection with a merger, acquisition or sale of substantially all assets, provided the assignee assumes the assigning party's obligations.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its choice-of-law principles. The parties consent to the exclusive jurisdiction and venue of the state and federal courts located in that state for disputes arising under this Agreement.

Entire Agreement

This Agreement, including any annexes, schedules and statements of work executed under it, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. Any amendment must be in writing and signed by authorized representatives of both parties.

Notices

Notices under this Agreement shall be in writing and shall be delivered to the addresses provided above or such other address as the receiving party may specify in writing.

Client:

By:

Date:

Provider:

By:

Date:

Enter text✕

What a Cloud Hosting Agreement Covers and Why It Matters

A Cloud Hosting Agreement is a contract that sets the terms under which a cloud provider stores, manages, and delivers computing resources, data, and services for a customer. The agreement defines service levels, data security and privacy commitments, access controls, backup and disaster recovery procedures, data location or residency, compliance obligations, liability limits, indemnities, pricing and billing, termination and transition assistance, and responsibilities for maintenance and updates. For U.S. transactions, include provisions addressing ESIGN/UETA-compliant electronic execution, HIPAA if health data is involved, and governing law for disputes.

Why a Clear Cloud Hosting Agreement Reduces Risk

A Cloud Hosting Agreement clarifies service expectations, allocates cybersecurity and compliance responsibilities, limits liability for outages, and sets pricing and termination terms. Clear agreements reduce operational risk, support regulatory compliance such as HIPAA or state privacy laws, and streamline dispute resolution.

Why a Clear Cloud Hosting Agreement Reduces Risk

Who Typically Uses a Cloud Hosting Agreement

Organizations that commonly use a Cloud Hosting Agreement include companies outsourcing infrastructure, software vendors, and regulated healthcare or financial institutions.

  • SaaS companies managing multi-tenant applications and customer data across distributed environments.
  • Healthcare providers and vendors requiring HIPAA protections and Business Associate Agreements with hosts.
  • Enterprises and finance firms that need clear SLAs, audit logs, and data residency clauses.

Choose or tailor the agreement based on industry compliance needs, contract value, and data sensitivity.

Who Signs and Why Their Authority Matters

Primary Signer

The primary signer is typically the customer's CIO, CTO, or head of procurement authorized to accept service levels, pricing, and data handling terms. Ensure their legal name and title match corporate records to avoid enforceability challenges, and confirm authority in a board resolution if required.

Authorized Representative

On the provider side, an officer or contracting manager signs with delegated authority. If hosting involves regulated data (HIPAA, GLBA), obtain written confirmation of compliance commitments and any required subprocessor lists before signing.

Core Sections Every Cloud Hosting Agreement Should Include

Essential sections form the backbone of a robust Cloud Hosting Agreement and should be present in every professionally drafted contract.

Service Scope

Define services, resource allocation, API access, uptime targets, backup frequency, and accepted usage. Be explicit about excluded services and change management to avoid scope creep.

SLA

Specify measurable uptime, response and resolution times, credits for downtime, maintenance windows, and escalation contacts. Include metrics and methods for uptime calculation and dispute resolution for SLA breaches.

Security

Detail encryption standards in transit and at rest, access controls, vulnerability management, and incident response obligations including notification timelines and remediation responsibilities.

Compliance

State applicable certifications, regulatory obligations (HIPAA, SOC 2, PCI DSS), audit rights, and whether a Business Associate Agreement or similar addendum is required.

Data Location

Clarify geographic data residency, cross-border transfers, export compliance, and whether the customer can require specific regions or data centers.

Termination

Set notice periods, service wind-down assistance, data return or secure deletion procedures, and fees for early termination or transition support.

Security and Compliance Controls to Specify

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II; ISO 27001; PCI DSS
Privacy: GDPR; CCPA compliance frameworks
Healthcare: HIPAA-compliant with BAA required
Regulatory: ESIGN and UETA recognition
Accessibility: WCAG 2.0 Level AA support

Step-by-Step: From Draft to Signed Cloud Hosting Agreement

Follow these steps to complete, review, and sign a Cloud Hosting Agreement to ensure operational readiness and compliance.

  • 01
    Gather Documents: Collect scopes, security controls, and prior audits.
  • 02
    Draft Terms: Define SLA, liability caps, and data clauses.
  • 03
    Legal Review: Have counsel confirm compliance obligations and indemnities.
  • 04
    Execute: Obtain authorized signatures and retain copies.

How eSubmission and eSignature Work for This Agreement

Typical eSignature and eSubmission flow for a Cloud Hosting Agreement, from upload through audit trail retention.

  • Upload Document: Sender uploads final contract PDF or DOCX.
  • Place Fields: Add signature, initial, date, and checkbox fields.
  • Authenticate Signers: Choose email, SMS, or stronger authentication.
  • Complete Audit: System records IP, timestamps, and certificate.

Configure an Electronic Workflow That Matches Contract Requirements

Configure your online workflow to match contract routing, signer authentication, and retention obligations before sending for signature.

Workflow Field and Configuration Name Configuration
Routing and signer order configuration Sequential or parallel; conditional branches
Authentication method and verification level Email OTP, SMS code, or KBA for high risk
Notification, reminders, and deadlines settings Email reminders, expiration alerts, escalation steps
Retention and archival handling after signing Auto-archive signed PDF; set retention duration

Delivery Channels and Integration Points to Consider

Decide how you will distribute the agreement and which integrations are necessary for downstream systems.

  • Integrations: Salesforce | Microsoft 365 | NetSuite | Google Workspace
  • Document Formats: PDF, DOCX, HTML, Excel
  • Signers: Unlimited users supported on paid plans

Baseline eSignature Pricing and Feature Comparison

Compare starting prices and core capabilities to evaluate eSignature vendors for Cloud Hosting Agreements; signNow appears first in the table below.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card required Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical Ways to Improve Accuracy and Reduce Negotiation Time

Adopt these drafting and operational practices to reduce ambiguity, accelerate execution, and limit downstream risk.

Specify measurable SLAs and remedies
Use precise uptime metrics, measurement windows, and clearly defined credits or remedies. Explicit measurement methods avoid disputes over whether downtime qualifies for a credit.
Limit liability and allocate indemnities carefully
Set reasonable liability caps tied to fees, carve out liabilities for breach of confidentiality, and require proof of liability insurance rather than unlimited indemnities.
Require security controls and audit rights
Specify minimum encryption standards, incident notification timelines, and vendor obligations to provide audit reports and remediation plans upon request.
Plan data exit and transition in advance
Include detailed data return, secure deletion, and transition assistance terms with timelines and formats to minimize business disruption at contract termination.

Frequently Asked Questions About Cloud Hosting Agreements and eSignatures

Common questions about enforceability, signatures, compliance, and post-signature access are addressed below with practical, U.S.-centric guidance.


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