Lesson 1 introduces terms and concepts like "cloud computing," "cloud services," "software-as-a-service," and "AI-as-a-service." Then it explains the odd position of cloud services as neither a product nor a service – as an in-between offering. The lesson goes on to describe errors that often flow from mischaracterizing cloud services, including granting licenses, mishandling taxes, and failing to address data.

For samples of the contract terms discussed in this chapter, please visit our Clauses Archive and scroll down to I-D.