Fortunately, there are ways to avoid getting locked into one supplier.
1. Don't buy all your solutions from the same supplier.
This is the most obvious of the considerations, but it does work. People often decide to purchase new services from the same provider because of ease of use. Before you do this, compare all providers offering the same service. If your existing service can't work with your current provider, there's a good chance you'll end up with vendor lock-in.
2. Find a platform that you can develop yourself.
For example, by choosing a platform that is open source or supports integrations and/or customizations. These platforms share (parts of) their code with developers, which often means the platform is open to collaborations with third parties.
Note: Open source can also have risks, such as patch updates that are less effective or security vulnerabilities. Check the project owners and project history before making your choice. It's also important to remember that open source projects are often more generic, so they're often less suited to individual needs.
3. Manage all your data locally.
Make sure you manage all your own data. If everything is stored in your provider's cloud storage, it's difficult to transfer it to another provider. Therefore, maintain your own hosting location, for example, with a private cloud or local server. You can include a data reversibility clause in your software contract. This gives customers the right to retrieve their information from providers and can force providers to delete your data if you no longer want them to have it.
4. Legally establish when you can cancel your contract.
Consider, for example, price and quality agreements. If your supplier doesn't honor these, you have a valid reason to terminate your contract. When is a supplier allowed to increase their price? By what percentage? How quickly are they required to resolve bugs or support tickets?
5. Make exit agreements.
Agree on the responsibilities of both parties when terminating a contract. Consider what happens to any customizations, what costs your supplier may charge, and how quickly they must transfer your data. You may want to involve an escrow agent in this process: a trusted third party that helps determine who owns the source code.
6. Limit the length of your contract.
Many contracts can now be canceled on a monthly basis. Suppliers who want to sign you for multiple years without any cancellation options are often a red flag.
7. Think ahead.
Don't just look for a solution that meets your needs now, but also consider where you'll be in a few years. Is the solution you're looking at now scalable as you grow? How do you cancel this service, or how do they facilitate switching? Does this service collaborate with third parties? Will you need more functionality in the future than this platform offers?
8. Have knowledge properly documented.
If you've been working with a supplier for a long time, they have extensive knowledge of the systems they use. Don't become dependent on your supplier's expertise. Train your own staff to use all the systems, and have your supplier document their work. This way, the knowledge remains accessible if you ever end your relationship.
9. Find existing customers.
How does the supplier interact with their current customers? Take the time to contact them and ask about their experiences.
Note: Pay close attention to how you find these customers. Customers referred by the supplier are likely to be positive about their collaboration.
10. Keep evaluating.
After signing a contract, it's advisable to meet regularly with your supplier to discuss the collaboration. Have an honest discussion about your concerns and prevent vendor lock-in from becoming a problem.
