What is Vendor lock-in in cloud computing
Vendor lock-in refers to a situation where the cost of switching to a different
vendor is so high that the customer is essentially stuck with the original
vendor. Because of financial pressures, an insufficient workforce, or the need
to avoid interruptions to business operations, the customer is "locked in" to
what may be an inferior product or service. Imagine an office has coffee brought
in by a coffee vendor, and this vendor requires specific coffee machines in the
office that only the vendor sells. Now imagine there is a steep decline in the
quality of the coffee that this vendor delivers. Switching to a new coffee
vendor would mean the old machines they purchased become useless, as the switch
likely requires the purchase of new coffee-making equipment. Given the hassle
and added expense of replacing every coffee machine, the workers in the office
would be effectively locked into their agreement with their old vendor and
forced to drink inferior coffee. A real-world example of vendor lock-in is the
way Apple locked consumers into using iTunes in the early days of the service,
because music purchased via iTunes could only be played within the iTunes
application or on an iPod.
In cloud computing, some amount of software or computing infrastructure is
outsourced to a cloud vendor, which offers it as a service and delivers it over
the Internet. For instance, cloud-hosted servers are Infrastructure-as-a-Service
(IaaS), and cloud-hosted applications are Software-as-a-Service (SaaS). <\n>
Sometimes, a company may find themselves locked into a certain cloud provider.
Vendor lock-in can become an issue in cloud computing because it is very
difficult to move databases once they are set up, especially in a cloud
migration, which involves moving data to a totally different type of environment
and may involve reformatting the data. Also, once a third party's software is
incorporated into a business's processes, the business may become dependent upon
that software.
Why is vendor lock-in a concern?
A number of circumstances can negatively impact a business if they are locked in
with a certain cloud vendor: If a vendor's quality of service declines, or never
meets a desired threshold to begin with, the client will be stuck with it The
vendor may also drastically change their product offerings in such a way that
they no longer meet a business's needs A vendor may go out of business
altogether Finally, a vendor may impose massive price increases for the service,
knowing that their clients are locked in Overall, handing off foundational,
business-critical technology to an external vendor is not easy for any company,
and it requires a large degree of trust in the vendor.
How can companies avoid the risks of vendor lock-in?
Evaluate cloud services carefully: Companies should thoroughly research a cloud
vendor before they make a commitment, ideally with a proof of concept deployment
to make sure that their level of service is sufficient. Ensure data can be moved
easily: Companies using cloud computing should make an effort to keep their data
portable, or easy to move from one environment to another. They can partially do
this by clearly defining their data models and keeping data in formats that are
usable across a variety of platforms, rather than formats that are specific to a
given vendor. Backups: Keeping internal backups of all data helps a business
stay ready to host the data elsewhere if it is too difficult or time consuming
to extract it from cloud service (as well as providing some protection from
ransomware). Multi-cloud or hybrid cloud strategy: A multi-cloud approach
incorporates multiple cloud providers, reducing dependence on any single vendor.
In a hybrid cloud, some data will remain within an organization's direct
control, either in a private cloud or stored on-premise.
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