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Practice · 1 min read

Exit strategy

In shortA clause in a contract is a guess. A completed export is proof.

Almost every large cloud contract contains an exit clause. Almost none has ever been used. That is the heart of the problem: a clause describes what should happen. It says nothing about what actually happens.

What a credible exit strategy contains

A full export, performed. Not requested, not promised — pulled, loaded into a different tool, and checked. Write down what is missing. That list is the real inventory.

A named destination. "We would take something else then" is not a strategy. A specific product, a rough effort estimate, a contact.

A timeline. Realistically, how long does the switch take, from decision to switching the old system off? If nobody can answer, that is the answer.

A trigger. When would you actually go through with it? A price rise above X per cent, the loss of the adequacy decision, an outage over Y hours. Without a trigger, nothing happens until it is too late.

What the law now requires

For financial firms, DORA has required documented exit plans for critical ICT providers since January 2025 — with testing. The EU Data Act obliges cloud providers to support a switch and has abolished switching charges. See EU Data Act.

Anyone in a regulated sector has to do this anyway. Everyone else should, because it is the cheapest insurance in this entire field.

The side effect nobody mentions

A rehearsed exit changes the next contract negotiation more than any argument. Not because you threaten anything. Because both sides know it would be possible.

Sources

See also

Related terms