Vendor lock-in can be annoying
Sometimes you purchase a useful tool from a great vendor, and everything seems to run smoothly. But then things start to get rough. You want to scale, experiment, or innovate, and suddenly you're limited by that once-so-useful tool. Meanwhile, all your processes have become so intertwined with the vendor that it's difficult to switch. This phenomenon is known as a 'vendor lock-in'.
Is vendor lock-in bad?
Vendor lock-in isn't necessarily a bad thing. A strong relationship with your vendor can also offer advantages. For example, you can quickly respond and receive support because you only have to communicate with one party, and it can be a significant advantage if your vendor has precise knowledge of your business' niche. Working with a single vendor also often simplifies things: your teams only need to maintain a single dashboard and can collaborate within the same platform.
To determine whether vendor lock-in is a problem for your company, it's important to carefully consider the impact of your collaboration with your supplier on your business performance. Are you being held back by your platform's functionalities? Do you want to go beyond what your current platform allows? Talk to your supplier to see if they can help. If not, staying with them could become problematic.
Determine how deep you are in your vendor lock-in
Breaking free from vendor lock-in can seem difficult sometimes. However, it's not impossible. To determine how deeply locked in you are, it's helpful to figure out at what level you're experiencing problems. There are three levels of vendor lock-in:
1. The basic technology (your platform, for example Microsoft or Hubspot),
2. Implementationpartners (the supplier of your system)
3. Third-party integrated components (additional tools or widgets you want to connect)
Consider which of these three levels you're experiencing problems at, and which tools or services are limiting you. Depending on the level, it will be harder (highest level) or easier (lowest level) to break free from vendor lock-in.
How do you get out of vendor lock-in?
If your vendor lock-in is problematic, there are two steps you can take: talk to your supplier or terminate the contract.
First, talk to your supplier. Communication is key! Contact them to discuss your concerns and see if you can find a solution together. Are they transparent about the solutions they offer? Can they offer one or more solutions? Do you have different expectations?
Is your provider unwilling or unable to offer a suitable solution? Perhaps it's time to switch. Review your contract and look for valid reasons to cancel. Contracts often stipulate price and quality agreements. If your provider breaches these by, for example, suddenly raising the price unreasonably or failing to fix faulty software in a timely manner, you are entitled to cancel your contract.
For the future
Once you've escaped vendor lock-in, it's important know how to prevent this situation in the future. Here are 10 strategies to help you avoid another problematic vendor lock-in.
Do you have questions about vendor lock-in, or would you simply like to discuss your situation? Feel free to contact us.
