Is Meta’s $10 billion cloud deal a good idea for you?

Shortly after Reuters broke the news that Meta, the company behind Facebook and Instagram, had signed a $10 billion, multiyear cloud deal with Google, a CIO friend called me with some questions: “David, should we be doing something like this? Are these mega prepurchase cloud agreements the new table stakes for enterprises?” The question is as pressing as it is complex. My answer, shaped by years of watching and guiding digital transformation, may not be what cloud vendors want you to hear.

Here is the current situation, my advice, and its rationale.

Why Meta made a deal

The headlines make it look simple. Meta is spending more than $10 billion over six years with just one cloud provider, betting on the value of stability, scale, and access to the very latest infrastructure. In their view, this isn’t just a purchase. It’s a strategic investment in the future of AI and digital services. CEO Mark Zuckerberg has been very public about Meta’s intent to build massive, world-dominating AI data centers. That kind of ambition almost demands a high-profile, high-commitment partner.

Should everyone else follow Meta’s lead? The short answer is no. What makes perfect sense for Meta may be a minefield for most enterprises.

Meta’s environment is unusually unified. Its workloads are highly engineered for scale, and the company can afford to run a single technology stack tailored to a specific cloud vendor’s offerings. This makes it easy for them to leverage the deepest discounts, build close relationships with their chosen provider, and manage everything in a coordinated, relatively streamlined way.

But most enterprises look nothing like Meta. Instead of a single, coherent stack, large businesses tend to operate a patchwork of legacy systems, cloud-native apps, and recently acquired technologies, all connected by years of changing business priorities, vendor deals, and hurried digital transformation projects. That’s where comparisons break down—and where real risks of these mega deals begin.

Lock-in versus big discounts

The biggest carrot in these long-term cloud contracts is the promise of lower costs. Cloud providers love to dangle deeper discounts, exclusive services, and premium support in front of enterprises in hopes of getting a large, up-front investment and a pledge of long-term loyalty. It’s tempting to think that the same tricks that work for buying bulk office supplies might apply to your digital backbone.

Here’s what many enterprises overlook: Every time you sign one of these massive agreements, you’re also becoming tightly connected to a single ecosystem. Your architecture, processes, and even your people begin to specialize in that specific provider’s way of doing things. Proprietary APIs, custom infrastructure management, and unique security models initially provided a tactical edge but can quickly turn into operational constraints if (or when) the industry changes.

Technology never stands still. What looks like the obvious best choice today could be obsolete in as little as 18 months. New regulations appear, innovative technologies disrupt the market, businesses merge or split, and priorities shift. When any of these inevitable changes happen, an enterprise locked into a six-year, multi-billion-dollar contract has very few good options, especially if the contract was structured to maximize early savings over long-term flexibility.

Meta doesn’t face these problems. Its unified stack and precise goals make change less likely and migration much simpler if it ever becomes necessary. In contrast, most enterprises operate in a world of constant churn. No provider is best-in-class across every key requirement, and even your most important priorities may shift during the life of a long-term deal.

The result? Discounted pricing rarely makes up for the value lost when flexibility and leverage disappear. If a new cloud technology emerges that could boost your productivity or cut your costs, you want to be able to adopt it without paying a massive penalty or undergoing a disruptive technical migration. If you’re locked in, that’s often impossible.

Keep your options open

So, what should CIOs, CTOs, and IT leaders do when presented with these big, bold offers? My advice remains consistent: Prioritize agility over price and seek flexibility wherever you can. Treat the cloud as a toolkit, not a destination.

This means resisting the siren call of large, long-term, single-provider deals. Instead, look for strategies that leave room to maneuver. Multicloud architectures—using different cloud providers for different applications or workloads—allow you to choose the best services for each job. Shorter-term contracts or reserved instances can offer savings without locking you in for years. Also, keep a close eye on industry standards and vendor-neutral technologies such as Kubernetes, containers, or open APIs. These make it easier to move workloads or adopt new providers as your needs evolve.

Another advantage of a more flexible approach is that it fosters a culture of continuous optimization. Instead of making a choice once every few years and hoping for the best, your teams stay focused on constant improvement, always asking, “Could we do this faster, more securely, or more cost-effectively somewhere else?” Vendors know their business with you is never guaranteed, which makes them more likely to provide real value year after year, not just at renewal time.

It’s also worth thinking about the “unknown unknowns.” During periods of business growth, regulatory shifts, or unexpected events (mergers, acquisitions, divestitures, compliance requirements, or major market changes), the most successful organizations are those that can respond quickly. Being stuck with a long-term cloud deal, no matter how attractive it once seemed financially, can limit your options and put your business at risk.

Observe Meta, but don’t follow blindly

When my CIO friend asked about Meta’s giant agreement with Google, my answer was measured. There’s nothing wrong with watching the world’s biggest companies and learning from their strategies. But you must also recognize how different your reality likely is. Meta operates at a massive scale with a single-minded purpose that few other organizations can match. Its business is built for this sort of cloud deal.

For a typical large enterprise with layers of legacy technology, diverse workloads, and a mission that evolves year by year, a long-term, single-provider prepurchase agreement is almost certainly the wrong approach. Instead, focus on flexibility, continuously review your options, and negotiate from a position of strength. The goal should always be to adapt and thrive as new technologies, business models, and requirements emerge.

Behind any announcement about a multi-billion-dollar cloud deal is a simple truth: In technology, the only constant is change. Be prepared for it. Your future business will thank you for keeping all your options open.