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Vendor lock-in shows up when you want to cut costs. For example, during a recession. It basically a fixed cost imposed by the cloud providers. I.e. when the e
by streetcat1 6y ago
Vendor lock-in shows up when you want to cut costs. For example, during a recession.
It basically a fixed cost imposed by the cloud providers.
I.e. when the economy contract, and yet AWS/Azure profits are growing, this is the pain of vendor locking.
- scarface74 6y agoAnd employee’s salary is not a fixed cost? Or are you going to ask your employees to do double duty because “we are family and we are in this together”? How many companies that were on such thin margins between surviving and going out of business that cutting infrastructure spending by 10 or 20% was going to make a difference in them being able to survive?
- streetcat1 6y agoYes, they are. But this is outside the point. Which is, vendor locking did not show itself, because the economy was good.
- scarface74 6y agoCompanies have been “locked-in” to vendors since IBM in the 50s. There are still plenty of successful companies that have been dependent on IBM for decades and weathered plenty of recessions. That’s not to mention all of the companies in the modern era that are completely “locked in” to the Microsoft ecosystem and spend literally millions on Windows, Sql Server, Active Directory, Office 365, etc. and have also weathered recessions. Any large company depends on literally dozens of vendors that they have tied their business process into where it would be a major pain to switch. I know in the health care industry, a lot of health systems are so tightly tied into their EMR/EHR, leaving a something like AWS would be a breeze.
- paulryanrogers 6y agoCould it be large companies have war chests to draw on? Smaller companies often run leaner. Except maybe for big airlines that spent their surpluses on stock buybacks and executive pay increases.
- TomMarius 6y agoDid you consider that AWS profits might be growing because everyone and their mom and their grandma are sitting on the Internet now?
- lostcolony 6y agoTheir profits are growing...their pricing isn't. AWS has yet to increase the price of any resource; they've only ever lowered them.
- manigandham 6y agoThe clouds are designed for elasticity. Cutting costs there would be easier than some colo/on-prem environment which has much more contract lock-in.