CIOs Weigh The New Economics And Risks Of Cloud Lock-In
CIO, Thursday, December 14,2023
With AI tools rapidly emerging from major cloud vendors, a new opportunity cost for CIOs' cloud strategies is arising to bring new twists on old questions about the risks of cloud concentration.
As CIOs seek to achieve economies of scale in the cloud, a risk inherent in many of their strategies is taking on greater importance of late: consolidating on too few if not just a single major cloud vendor.
And while vendor lock-in has long been a key issue in the cloud, especially for organizations that have not established a credible threat of defection, the emerging AI tools market - and its accompanying arms race among the major cloud vendors - could leave CIOs at risk of the opportunity costs of AI lock-in as well.