The cloud now plays a crucial role in the day-to-day operations and performance of countless businesses around the world.
In the EU, 41% of enterprises used cloud computing in 2021 - an increase of five percentage points from 2020. While this technology was commonly utilized to host email systems and store files, nearly three-quarters (73%) of businesses used sophisticated cloud services for purposes such as cybersecurity, database hosting and application development.
To get the most out of the cloud, it's important to be aware of common problems and pitfalls, so you can be sure to avoid them. One such issue is cloud vendor lock-in - a scenario that could have significant repercussions for your business if it's not managed carefully.
This situation occurs when a business finds itself 'locked in' to a cloud service that it may not be satisfied with, because the financial costs or operational ramifications of moving to another provider are such that switching is considered unfeasible.
If you’ve been using the same vendor for a long time, for example, you might have various databases, business processes and key elements of your IT function running on the software this business provides. In the event your supplier decides to increase its prices, or there’s a noticeable decline in the quality of service you receive, you might be stuck with these less-than-ideal circumstances simply due to the financial, technical and practical implications of switching.
This is a position no company wants to find itself in, so you should make sure you're prepared with a plan to protect you and the business from the dangers of cloud vendor lock-in.
To significantly reduce the risk of vendor lock-in, here are five best practices:
Prevention is better than cure, so the saying goes. This is a philosophy that can be applied in practically any area of business, since avoiding a problem is always preferable to dealing with it after the fact, when the damage to the company may have already been done.
Make sure you're fully aware of the risks of cloud vendor lock-in and you have measures in place to mitigate them before you commit to a supplier relationship. A crucial part of this process is doing your research on potential providers and ensuring you're always prepared with an exit strategy, should a change of vendor become necessary.
Read the fine print on all policies and contracts you're presented with, scrutinize service level agreements and be prepared to ask questions about: