The first thing to remember about a cloud SLA is that it takes two to tango, says Michael Overly, a partner in the IT and Outsourcing Group in the Los Angeles office of Foley & Lardner LLP. "Everyone's expectations have to be set properly," says Foley, who has worked on both sides of the issue having represented both customers and vendors in crafting SLAs.

MORE CLOUD:

The larger the contract, the more opportunity there is for negotiating the SLA. But generally, by the very nature of the public infrastructure as a service () cloud, many providers have generic service offerings, which allow the vendors to offer inexpensive prices. To the extent that a customer wants a customized offering, the price will generally rise. Customers of public cloud offerings should not expect customized services made specifically for them. If they're looking for that, there are or collocation services.

Meanwhile, cloud providers need to take customer concerns into account. Foley says the cloud companies that listen and respond to customer concerns will be the ones succeeding long-term. Even if expectations are set, he says there are a variety of issues that can pop up during the SLA negotiation and after the document is signed. Foley has five tips to make sure businesses don't get burnt:

Where in the world is my data?