Vendor lock-in: the five forms nobody invoices
Cloud data egress is now free and EU law caps switching timelines and fees. Yet fewer than 1% of cloud customers change providers each year. The lock is no longer on the invoice — it sits in five dependencies nothing measures.
TL;DR
- Fewer than 1% of cloud customers switch providers each year (UK CMA, final decision of July 31, 2025).
- Leaving with your data is free at Google Cloud (January 11, 2024) and AWS (March 5, 2024); the EU Data Act bans all cloud switching charges from January 12, 2027.
- The law guarantees data portability, not the assets covered by the provider's intellectual property (Data Act, art. 30 §6).
- Real vendor lock-in rests on five dependencies no contract stipulates: data, knowledge, accounts, conventions, relationship.
- Financial regulators (DORA, EBA) require documented, tested exit strategies: reversibility is a capability, not a clause.
- After the VMware acquisition, the CISPE association reported in March 2024 license price increases of up to twelve times — with no breach of contract.
Exit is now free — and nobody leaves
Since January 11, 2024, Google Cloud has offered free outbound data transfer to customers migrating elsewhere; AWS followed on March 5, 2024, explicitly citing the EU Data Act. That same Data Act, applicable since September 12, 2025, caps switching charges at the provider's direct costs, before banning them on January 12, 2027. The invoiced cost of leaving is heading to zero — sometimes as credits granted on request, within a 90-day migration window: a process rather than a button, but heading to zero.
And yet, the UK Competition and Markets Authority (CMA) found on July 31, 2025 that fewer than 1% of cloud customers switch providers each year. If leaving costs almost nothing and almost nobody leaves, the lock is not on the invoice: it sits in the five dependencies above, which no contract stipulates. This thesis is falsifiable — the grid at the end lets you test it on your own systems.
What the law guarantees, and where it stops
European law has dismantled the contractual lock: a maximum two-month termination notice, a 30-day transition, then at least 30 days to retrieve your data (Data Act, art. 25). In France, the SREN law of May 21, 2024 limits free cloud credits to one year and caps transfer fees, under ARCEP supervision. Yet each text carries its own limit.
| Text | What it guarantees | The limit written into the text |
|---|---|---|
| Data Act, art. 25 and 29 | Exit in 2 months + 30 + 30 days; charges banned from January 12, 2027 | Covers only data processing services (cloud) |
| Data Act, art. 30 | Export "in a structured, commonly used and machine-readable format" | §6: nothing covered by intellectual property |
| GDPR, art. 20 | Portability of personal data | Direct transmission only "where technically feasible" |
| SREN law, art. 26-30 | Credits limited to one year, capped fees, fines up to EUR 1M | Transitional regime aligned with the Data Act until January 2027 |
The pattern is constant: the law covers what is contractual and measurable — data, fees, timelines — and stops where the provider's intellectual property begins. Self-regulation had not done better: the SWIPO codes of conduct (December 2019) were found to have "a number of significant shortcomings" by an assessment commissioned by the European Commission in February 2022. The binding regulation followed.
The five forms nobody invoices
These dependencies appear neither in the contract nor in the budget. They build up silently, precisely because the system works well.
| Form | What holds you | The warning sign |
|---|---|---|
| Data | The export exists, but schemas and history lose their meaning outside the tool | No export has ever been reloaded anywhere else |
| Knowledge | Configuration and business rules are documented only at the vendor's | Every internal question ends up as a support ticket |
| Accounts | Identities, domains and integrations are tied to the vendor's tenant | No inventory of service accounts on your side |
| Conventions | Proprietary formats, APIs and automations with no outside equivalent | Every need gets solved "inside" the ecosystem |
| Relationship | Your actual terms rest on the commercial relationship, not the contract | A change of ownership would change your equation |
The ISO/IEC 19941:2017 standard clarifies the first form: reading an export (syntactic portability) is not understanding what it contains (semantic portability). Data Act article 30 §6 shields conventions: the provider's intellectual property does not have to be disclosed.
The "relationship" form reveals itself at the worst moment. After Broadcom's acquisition of VMware, the CISPE association — European cloud providers, an interested party in the matter — reported on March 19, 2024 license terminations on a few weeks' notice and price increases of up to twelve times, among members deriving over 75% of their revenue from those technologies. No clause had been breached: the relationship had changed hands.
Finance has already settled it: exiting is a capability
Financial regulators do not require a reversibility clause, but a capability. DORA mandates exit strategies that are "sufficiently tested and reviewed periodically" for any critical ICT service; as early as 2019, the European Banking Authority required "a documented exit strategy" for any critical outsourcing.
The counter-example proves the rule. In October 2024, 37signals (the maker of Basecamp) documented a costed cloud exit: annual bill cut from $3.2M to $1.3M, about $700,000 of hardware, more than ten million dollars of projected savings over five years — possible only because an internal team knew how to bring things back in-house. Documenting decisions and keeping that knowledge with the client is the principle at the heart of how we build.
What doing nothing costs — The legal exit standard: two months' notice, a 30-day transition, 30 days to retrieve your data (Data Act, art. 25). Discovering your dependencies at notice time means resolving them within that window, from a position of weakness.
The replaceability scoring grid
Ten questions, two per dimension. Score 0 (no, or nobody knows), 1 (partially), 2 (yes, verified within the last twelve months). Total out of 20.
| Dimension | Question | Score 0-2 |
|---|---|---|
| Data | Does a complete, documented export exist that is readable outside the tool? | |
| Data | Has that export ever been successfully reloaded into another system? | |
| Knowledge | Are the configuration and business rules documented on your side? | |
| Knowledge | Can someone in-house explain why the system is set up the way it is? | |
| Accounts | Is the inventory of accounts, access rights and integrations kept on your side? | |
| Accounts | Would your identities and domain name survive a change of provider? | |
| Conventions | Do your formats and automations have an equivalent outside the current ecosystem? | |
| Conventions | Has an alternative been prototyped or tested on a real scope? | |
| Relationship | Would your pricing terms hold if the vendor changed ownership? | |
| Relationship | Is a credible alternative identified before each renewal? |
Reading the results: 16-20, you are replaceable — a position of strength in every negotiation. 10-15, address the zero-scored lines first. Below 10, your vendor probably knows your situation better than you do. Repeat the exercise every year, before renewals — the full approach is described in our method.
The limits of this approach
Being replaceable is not always desirable. On a peripheral tool, scoring replaceability costs more than it returns. Some dependencies are rational choices: the CMA did not find committed-spend discounts anticompetitive — concentrating your purchasing can be the right decision, made knowingly. And full reversibility has a cost: abstracting away every proprietary convention means giving up part of the value that justified the tool. The goal is not 20 everywhere, but knowing where you stand on the systems that carry your revenue.
Key takeaways
- The financial lock on exit is disappearing; what remains are five dependencies that neither the contract nor the budget shows.
- The law guarantees data, fees and timelines — never knowledge, conventions or the relationship.
- Scoring your replaceability every year, ahead of renewals, turns a dependency you endure into a dependency you choose.
Reversibility is built while everything is going well, one dimension at a time. The grid above takes an hour the first time; the gain shows up at every contract renewal.
Ownward helps companies perform better through technology — and above all, take back control.
Sources
- Regulation (EU) 2023/2854 on data (the "Data Act"), articles 25, 29 and 30 — EUR-Lex, European Union, accessed August 12, 2026.
- Regulation (EU) 2016/679 (GDPR), article 20 on the right to data portability — EUR-Lex, European Union, accessed August 12, 2026.
- French law no. 2024-449 of May 21, 2024 (SREN), articles 26-30 — Légifrance, accessed August 12, 2026.
- Regulation (EU) 2022/2554 (DORA), article 28 on ICT exit strategies — EUR-Lex, European Union, accessed August 12, 2026.
- EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02), § 106 — European Banking Authority, accessed August 12, 2026.
- Cloud services market investigation, final decision, July 31, 2025 — Competition and Markets Authority (UK), accessed August 12, 2026.
- Assessment of the SWIPO codes of conduct on data porting and cloud switching, February 2022 — European Commission, accessed August 12, 2026.
- ISO/IEC 19941:2017, cloud computing interoperability and portability — ISO/IEC, accessed August 12, 2026.
- Announcement eliminating data transfer fees when migrating off the platform, January 11, 2024 — Google Cloud, accessed August 12, 2026.
- Announcement of free data transfer out when moving off the platform, March 5, 2024 — AWS, accessed August 12, 2026.
- Statement on VMware license terminations and new licensing terms, March 19, 2024 — CISPE, association of European cloud providers (interested party), accessed August 12, 2026.
- Costed account of 37signals' cloud exit, October 17, 2024 — 37signals / David Heinemeier Hansson, accessed August 12, 2026.
Data and pricing verified on August 12, 2026.
All trademarks belong to their respective owners. This article is neither sponsored nor endorsed by the vendors mentioned.
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