When considering risk in cloud computing, what does 'vendor lock-in' refer to?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Vendor lock-in refers to a situation where a customer becomes dependent on a specific cloud service provider for products and services, making it difficult to switch to another provider or migrate data to a different platform. This dependence can arise from a variety of factors, such as proprietary technologies, data storage formats, or a lack of interoperability with other systems.

Choosing a cloud vendor often involves significant investment in time and resources in terms of configuring and integrating with the provider’s specific tools and systems. Once a company has invested in a particular vendor's cloud services, the transition to another provider can become cumbersome, if not impossible, due to the complexity of data transfer, potential losses associated with the need to retrain staff, and the cost implications of moving data and services.

The concept of vendor lock-in is often a critical consideration when organizations evaluate cloud solutions, as it impacts long-term flexibility, scalability, and the ability to adapt to evolving business needs or preferences.

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