ISC2 Certified Cloud Security Professional (CCSP) Practice Question
Your organization plans to migrate its proprietary claims-processing system to a niche Software-as-a-Service provider. Executives are concerned about the provider's long-term viability and the possibility of vendor lock-in if the service ceases operations. During contract negotiations, which measure would most directly protect the organization from both of these risks?
Negotiate a fixed pricing schedule with an option for the customer to renew under the same rates and terms.
Adopt a pay-as-you-go billing model that allows the customer to scale usage up or down without penalties.
Mandate that the provider maintain ISO/IEC 27001 certification throughout the contract term.
Require the provider to deposit current source code and customer data with an independent escrow agent for release if service is discontinued.
Placing the application's source code and periodically updated copies of the customer's data in a neutral third-party escrow gives the customer a legally enforceable right to obtain everything needed to rebuild or transition the service if the provider becomes insolvent or otherwise unable to perform. While price caps, certification requirements, or usage-based billing may deliver financial or security benefits, none guarantee access to the underlying code and data that are essential for avoiding lock-in and mitigating provider failure. Therefore, an escrow arrangement is the most effective contractual safeguard against both vendor viability concerns and lock-in.
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What is a software escrow arrangement?
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Why is vendor lock-in a concern in cloud services?
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How does ISO/IEC 27001 certification contribute to cloud security, and why is it not sufficient to mitigate lock-in or provider insolvency risks?
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ISC2 Certified Cloud Security Professional (CCSP)
Legal, Risk and Compliance
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