Vendor lock-in:
with these four tips
you avoid dependency
on your supplier

Know that feeling? You want to switch suppliers, but you are stuck because moving costs a fortune or is simply not technically possible. Luckily you can prevent something like that relatively easily if you watch a few things. In this blog you read what vendor lock-inGlossary · In briefvendor lock-inVendor lock-in is dependence on one supplier that makes switching to an alternative difficult, expensive or disruptive.Read more really means and how you keep the consequences as small as possible.

What is vendor lock-in?

Picture this: you are looking for a platform built entirely to your measure, and you approach a company that makes fine promises at a sharp rate. Everything sounds perfect. Delivery is lightning fast and they work with that hip new frameworkGlossary · In briefframeworkA framework is a coherent foundation for software development, providing reusable code, a defined structure and conventions for building an application.Read more they have had beautiful successes with in the past. You agree.

Ideally your party simply delivers on its promises. They build a beautiful platform, neatly within budget and deadline, and provide solid maintenance for years so your company can keep growing. But what if it takes months longer than planned and that delivery date slides every month? And what if that platform does not run fast and smoothly at all, but keeps spitting out weird error messages? Switching to another developer is possible, yes. There are only situations where that suddenly becomes very hard. Think for example of:

• Your current party does not transfer the intellectual property of the software;
• You get no access to the source code;
• The quality of the code is so low that it cannot be developed further;
• Your developer has chosen a framework or language that is so 'unique' that it is almost impossible to find other parties with experience in it.

Then you are dealing with vendor lock-in, a situation in which you as a customer are stuck with one supplier and switching is only possible if you are willing to accept significant costs or hassle.

Why is supplier dependency a problem?

If your party delivers solid work, as agreed and at a good price, that dependency is not really an issue. It only starts to hurt the moment that bond suddenly forces you to pay more, quality disappoints, or you miss a certain freedom of movement. Because there are so many companies offering custom software, you as a buyer are actually in a fairly strong position. Plenty of choice. So you are really not forced to go with a company you later struggle to get away from. But then of course you do need to know what to watch for.

With these 4 tips you prevent vendor lock-in

1. Make contractual agreements about ownership of components, data, licences, and intellectual property.

Is that code yours or the developer's? And in whose name is the hosting, at your company or does it actually run through the company that built it? The more rights and access you have to everything that was developed, the smaller the chance that a developer can simply hold your code hostage at some point.

2. Make time to dig into the technological systems the developer proposes.

You really do not need to understand GraphQL down to the endpointGlossary · In briefendpointAn endpoint is an address at which an API makes a particular resource or action available.Read more level. It is a popular open-sourceGlossary · In briefopen sourceOpen source is software whose source code is available under a licence that allows others to use, study, modify and redistribute it.Read more language that Facebook, Spotify, GitHub, Pinterest, and Twitter rely on. Finding another company with experience in it is usually no problem at all, so you quickly lose any fear of the typical teething troubles of something new. More information about GraphQL can be found here.

3. Draw up an exit strategy

Think about what needs to happen if you part ways, before you even start. That forces you to make sharp choices. Look carefully, for example, at the term of a contract and how you cancel it, because what you lock in now saves an enormous amount of hassle later. Also remember to review your exit strategy now and then during the collaboration, so it keeps fitting how your relationship develops.

4. Look for an IT partner with shared norms and values

The list is starting to look a bit like a step-by-step plan for 'finding the ideal date'. That is not so strange, because dating between people or between companies differs little. If your company loves pace, switching fast, and you can live with the mistakes that come with that, then do not go with a developer who wants everything worked out to the last detail. That will chafe. The other way around is of course exactly the same. Precisely when you enter an intensive, long-running relationship with a supplier, shared norms and values reduce the chance that someone gets hurt.

You always hope for a collaboration both parties are happy with. If that is unexpectedly not the case, these tips at least ensure the breakup goes with as few bumps as possible.