A third of businesses feel locked in to major cloud providers
Hyperscale cloud providers continue to dominate the market, with Azure and AWS in use as the major public cloud provider by 82 percent of businesses.
But new research from Civo shows that 34 percent of users feel locked into the services these major providers deliver, with 65 percent of these saying that data transfer costs are too expensive for them to move off their current cloud.
Mark Boost, CEO of Civo says:
Credibility is king in today's cloud market. Investment decisions are guided today by reputation, with purchases signed off on the basis of a name and a path of least resistance. There is a general malaise in the market, with businesses tied into cloud services and held back from considering other options by the cost and difficulties of moving data to another provider.
We should remember, however, that trust is not a given. It is something to be earned, and in today's market, the hyperscalers are not doing enough to live up to their name.
The study also shows that 33 percent simply say they have always used their current provider. Whilst 45 percent of firms indicate a growing pressure from leadership to reduce cloud cost, 62 percent say they are concerned that alternative cloud providers would suffer more outages.
Many respondents made it clear to Civo that they would only consider moving to an alternative provider if they faced a 'hack or prolonged outage', a 'critical incident' or a threat to their 'data security'.
Boost adds, "We need to see a transition to a fairer and more equitable cloud market that puts the needs of the customer first. Decision makers are drawn in by hyperscalers by deals and discounts, then left saddled with unpredictable costs and billing that represents a constant check on business growth. The focus needs to be on a cloud sector built on principles of streamlined services and fast launch times, all for a fair and predictable price."