Vendor Lock-in
posted by Anna Mar, April 10, 2011Every enterprise architect has seen it: a vendor relationship that turns sour. Enterprise architecture needs to minimize vendor lock-in: the risks and costs associated with replacing a vendor.
Impact of Vendor Lock-in
Vendor lock-in not only makes it difficult to replace a vendor but also:- increases vendor pricing power
- boosts exposure to vendor failure and support downgrades
- limits innovation
Product Lock-in
Some organizations fall in love with a vendor and run the entire business on one product line. Love is grand but divorce is painful and expensive.Outsourcing Lock-in
Outsourcing reduces corporate knowledge. Whether you outsource a project, support or business operations your vendor will gain knowledge your people don't have.SaaS Lock-in
SaaS vendors control your software, data and infrastructure. They are also fully responsible for the service management processes related to that software.Don't underestimate the task of replacing SaaS software. Contract renegotiation with a SaaS vendor often resembles extortion.
No Golden Rule
Despite the dangers, there are also advantages to vendor concentration:- economies of scale
- less relationships to manage
- reduces technology proliferation
- discounts from volume purchases
- reduces political infighting between vendors
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Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.
~ Howard Aiken |
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Enterprise Architecture (EA) is supposed to help manage IT risks
— but is it possible that EA itself introduces new risks? |
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Modern technology customers and industry insiders are faced with a constant stream of change. Human ability to adapt to this pace of change is remarkable. |
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Current state architectural blueprints. |
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