I came across a copuple of interesting reads over at the UK-based Cloud Legal Project site (which is part of the Cenre for Commercial Law Studies, Queen Mary University of London).

The first is a survey of Cloud vendor contracts ('Terms of Service Analysis for Cloud Providers'), which highlights risks such as the vendor right to change ToS at any time without niotification, cancellation of accounts for disuse or AUP violations and limited liabilities for loss of data.

The second paper is on Information Ownership ino the Cloud, which highlights the need for strict definitions in contracts as to who retains the ownsership rights of various data types.

Both papers are well worth a read.