New Zealand will next month become the first country in the world to have a code of practice for cloud computing.
Cloud providers who sign up to the voluntary code will have to declare what they offer so customers can make an informed decision.
Institute of IT Professionals chief executive Paul Matthews says the code puts New Zealand at the forefront of the industry and other countries are considering adopting it.
He says it will help build trust in cloud computing, in which companies hand over data and systems to someone else to look after.
Mr Matthews says the new code is about putting the onus on providers to make clear exactly what security precautions and back-up systems they have in place, where data is stored and a range of other disclosures, so customers can make an informed decision about which cloud service to use.
A complaints process is built in, and Mr Matthews says if provider is found to have breached the code they would be removed from the register.
He says it's a voluntary code of practice which means some companies will choose not to participate.