Cloud Computing

Vendor Lock-in

Definition

Vendor lock-in is a situation where a customer using a product or service cannot easily transition to a competitor. In cloud computing, it occurs when an application is heavily reliant on a specific cloud provider's proprietary services, making it difficult and costly to move to another cloud.

Why It Matters

Avoiding vendor lock-in is a key strategic consideration for many companies. It gives them more negotiating power, allows them to take advantage of price reductions from competitors, and reduces the risk of being stuck with a provider whose services no longer meet their needs.

Contextual Example

A company builds its application using AWS Lambda, DynamoDB, and S3. Moving this application to Google Cloud would require a significant rewrite because these are AWS-specific services that do not have direct, compatible equivalents.

Common Misunderstandings

  • Using open-source and cloud-agnostic tools like Kubernetes and Terraform can help reduce vendor lock-in.
  • There is always a trade-off between using a provider's powerful, proprietary services (which can speed up development) and maintaining portability.

Related Terms

Last Updated: December 17, 2025