Providing services to other portfolio companies or otherwise related partners in of itself is not a bad practice, but can have many benefits for all parties involved.

Having said that, it should always be the CEOs and senior managements responsibility to do their due diligence to evaluate any service their business depends on so heavily and regularly renegotiate.

There's a good reason a Apple, Snap, Netflix etc. are using both Google and Amazon's cloud services to be in a position to leverage their relationship to negotiate better deals and not be dependent on a single provider.