Step-in Rights In Technology Contracts

Businesses increasingly rely on third-party technology providers to perform functions that are integral to their day-to-day operations. These range from cloud infrastructure and hosted software to fully managed IT environments. When such a provider fails, the consequences can extend well beyond an ordinary contractual breach. A disruption can affect access to systems and data and, ultimately, the customer's ability to keep operating.

Traditional contractual remedies such as damages, service credits and termination remain important, but they may not solve the customer's immediate problem: how does it keep a critical service operational while the provider is unable or unwilling to perform?
This is where step-in rights become particularly valuable.