The concept of cloud computing is formed as services delivered over the networked infrastructure by service providers to cloud service consumers. The concept of cloud computing has a lot of benefits like resource sharing, measured service providing, rapid elasticity, on-demand and remote access. Most of the organizations and public users look forward to the benefits and possibilities of cloud computing but they also have some concerns about the data security, availability and similar issues related to the cloud computing.

The focus of this master's thesis is on the situations when changing from one provider to another shows to be more difficult or bring unplanned costs or additional complications to the organization and these types of situations are known as vendor lock-in. This thesis is a qualitative research that is set in an interpretivist paradigm. Theoretical framework followed is technology-environment-organization framework. Data was collected by interviewing 6 participants with work experience and knowledge that was used for gathering better understanding of the focus area. Data was analyzed thematically to provide answers on research questions regarding effects of vendor lock-in from technological, organizational and environmental aspects and providing possible strategies for lowering the risk of vendor lock-in.

Keywords: Cloud computing, cloud computing challenges, vendor lock-in