Technology solutions can significantly enhance a hedge fund manager’s ability to operate more effectively and efficiently.  However, they also raise the expectations of fund investors and regulators and can be costly to implement, particularly for early-stage managers with little launch capital and limited office space.  As a result, many managers have opted for cloud solutions, which provide online access to powerful technologies, applications and services that heretofore were only available to managers with significant capital, space and dedicated staff, hardware, networks and software.  Nonetheless, cloud solutions are not without their risks, which fund managers should evaluate and address when choosing and using a cloud computing solution.  This article is the second installment in a two-part series addressing the issues hedge fund managers should consider when evaluating and using cloud computing solutions.  The first article outlined cloud computing services; key differences between different cloud computing solutions; what tasks hedge fund managers use the cloud to perform; and the benefits and risks of cloud solutions.  See “Key Considerations for Hedge Fund Managers in Evaluating the Use of Cloud Computing Solutions (Part One of Two),” Hedge Fund Law Report, Vol. 5, No. 40 (Oct. 18, 2012).  This article discusses how to evaluate the various cloud computing solutions and providers; describes best practices in creating and implementing policies and procedures for using cloud solutions; and identifies common mistakes made by hedge fund managers in selecting and using cloud solutions.  See also “What Concerns Do Mobile Devices Present for Hedge Fund Managers, and How Should Those Concerns Be Addressed? (Part Three of Three),” Hedge Fund Law Report, Vol. 5, No. 17 (Apr. 26, 2012).