‘Cloud lock-in’ is a familiar phrase; but what does it mean? We explore the various outcomes which can lead you to become ‘locked-in’, and how you can avoid it.
ERP vendors are forging ahead to a Cloud-based future, none more so than SAP and Oracle who are both using every tactic at their disposal to push their customers onto their Cloud products.
However, many organizations have been reluctant to move their entire ERP suite onto the Cloud, over concerns like cost, suitability, and complexities in migration. But one factor that many don’t consider is ‘Cloud lock-in’.
In this blog post, we’ll analyze what Cloud lock-in actually is, what can cause it, its effects, and ways of overcoming it.
What is Cloud lock-in?
First, be aware of the difference between Cloud as a platform for your ERP system (e.g. hosting a traditionally on-premise product on an AWS Cloud), and using a vendor’s Cloud-based SaaS product like S/4HANA:
- With Cloud as a platform, you are merely using someone else’s hardware to run your software in the Cloud – this potentially provides additional flexibility and cost-effectiveness.
- Cloud based SaaS products allow you to use a vendor’s software that is hosted within the vendor’s own Cloud.
It is the second version that we will be talking about in this blog, as it is controlled by the vendor and where you as a customer can experience Cloud lock-in.