What is vendor lock-in?

Vendor lock-in is a dependency on one provider that makes switching costly or impractical, because of proprietary data formats, closed APIs, contract terms, integrations or skills that only work with that provider.

Written by Ugo Balducci. Last updated

What vendor lock-in means

Vendor lock-in is the point where leaving a provider costs more than staying, even when staying is no longer what you want. It builds up in layers. Data sits in a format only the vendor reads well. Workflows depend on features no other product has. Integrations call a closed API. Staff know one tool. The contract runs for years and renews automatically.

None of this is unusual, and some dependency is a fair price for a good product. The problem starts when the vendor can change prices, terms, features or data location and you have no practical way to respond.

Why it matters when choosing where software runs

Lock-in weakens every other control. A data residency clause helps little if the vendor can change it at renewal and you cannot move. A sub-processor objection right means little if objecting leaves you without a service. Licensing changes in widely used platforms, such as the move to subscription bundles after Broadcom acquired VMware in 2023, have shown how quickly the cost of staying can change.

When you compare options, ask three questions. Can we export all our data in open formats, on our own schedule? Could someone other than this vendor run the same software? What would it take, in weeks and people, to leave?

How Pilae handles it

Every app in the Pilae catalogue is open source or source-available. Your data lives in standard databases and open formats, on machines in the location you choose. If you leave Pilae, another operator or your own team can run the same apps with the same data, and every plan includes a written exit strategy that sets out how.

To reduce lock-in you already have, we move you off SaaS products onto apps you control, plan VMware exits, and build exit plans for the providers you keep. Fixed-price migration moves the data, users and integrations and checks the result against the source.

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