The term vendor lock-in stands for an effect in which a customer of a product or service used is prevented from switching providers. In this article, we will explain to you what vendor lock-in is all about.
Vendor lock-in - simply explained
The so-called vendor lock-in effect occurs when companies offer (software) products or services that work well within the company's own ecosystem and offer further advantages in connection with other products from the same manufacturer, but cause problems when switching to other products . As a result, the customer is quasi "locked up" with the provider, since a change of manufacturer or product would lead to costs. The problems mostly arise from the proprietary technologies, ie the "in-house" developments that are subject to trade secrets and are therefore not accessible to the public. These technologies are incompatible or only compatible to a very limited extent with those of the competition.
But contractual restrictions can also lead to a vendor lock-in. Vendor lock-ins usually come about in the initial phases of new technologies, when there are no standards for corresponding developments and the manufacturers therefore have any developer freedom.
A well-known example is the software and hardware manufacturer Apple, which is known for the fact that the company's products harmonize almost perfectly with one another - but not in connection with devices from other manufacturers.
Cloud service providers are also affected by the vendor lock-in effect, as the various online-based storage platforms are not compatible with one another. When changing providers, customers have to go the cumbersome way of migrating their data from the old cloud to the new one. This often prevents many customers from even daring to make the switch..
How do I avoid a vendor lock-in?
The best way to avoid a vendor lock-in is to carefully check the provider. If you would like to use a service, find out as much as possible about the functions and possibilities of the provider.
Read the terms and conditions of the manufacturer / provider and, if in doubt, ask personally if something is not understandable to you.
Research standards that exist for technologies for your particular application. Check whether your chosen provider works according to these standards.