Why do cloud giants have so much power?

Cloud giants have so much power because they control the infrastructure, the software ecosystem around it, and often the cost of leaving. The biggest cloud providers do not just rent servers. They also sell databases, security tools, AI services, storage, and networking features that become part of a company’s daily workflow.

The FTC has flagged switching costs, exclusivity terms, and technical barriers as a real competition issue in cloud and AI partnerships. That means a customer can get stuck not because one provider is magical, but because moving workloads, staff knowledge, and dependent services is slow and expensive. On top of that, cloud vendors charge for data transfer out of their networks, so simply moving a lot of data can add a meaningful bill.

That is why cloud power is not just about price per server-hour. It is about lock-in, switching friction, and all the little charges that appear once a business is deeply built on one platform.