There is considerable debate in the IS research literature about the nature of cloud computing. Whereas some researchers suggest that cloud computing is a paradigm shift that is changing the IT industry, others argue that cloud computing is just another form of IT outsourcing. Based on a review of the IS research and practitioner literature, this paper takes a middle position. We believe that while cloud computing represents a new delivery model of IT resources, there are lessons to be learnt from earlier studies in outsourcing. Hence this paper focuses on one issue in particular: the relationship between the client and vendor. Drawing from existing studies in IT outsourcing, this paper seeks to identify those factors related to client-vendor relationships that might be relevant in the context of cloud computing. We propose four factors as being particularly relevant for cloud computing: commitment, cooperation, cultural compatibility and trust.