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What is Vendor Lock-In and How Could It Be Costing You Money?

Vendor lock-in is defined by Technopedia as ‘the restricted or proprietary use of a technology, solution or service developed by a vendor or vendor partner.’ This ensures that customers are dependent on the specific service through its use of IT solutions that run exclusively or collaboratively with limited and third-party partners. This is most clear in services managing large amounts of data such as cloud services.

Why is it a danger to my business?

Many SMEs like the idea of loyalty. When you talk to them about considering new options for new services such as IT support they will say “No, we’ve been with the same people for years and we have built a good relationship with them (etc...)”. This is all well and good but if they are restricting the capability of your company to keep up with new technology, this restricts how effectively your business will run overall.

Computer Weekly wrote an article about how this can manifest in the development of the cloud. They say: ‘Migration costs can become prohibitively high when dealing with a large amount of data’, it is recommended that rather than keep all your IT needs, and therefore your data, in one place that you are better to look for a more bespoke and cost-effective solution.

By using an external provider and outsourcing your IT needs you are ensuring that you keep up to date with the latest technologies and solutions. An outsourced provider, dealing with many different companies, will be able to keep up with the most effective solutions for varying types of business and will research and perfect the services they offer so they are offering their customers the most up to date and flexible IT support. Moreover, they will take care of the safe storage of your data and make sure you are not tied into any contracts by handling them on your behalf.

What can you do?

  1. It is good practice to always have a review of your services on an annual if not bi-annual basis. You need to avoid falling into the trap of using a service just because you have done for years. To get the best deals and most modern support you need to shop around to make sure you are doing what is best for your business.
  2. If you sign up for any service, read the fine print of each provider’s policies to make sure that if you want to move, you can without problems.
  3. Ask the provider whether they offer data migration tools or services to facilitate the movement of large amounts of data.
  4. Consider outsourcing your IT, then these problems will be managed for you and a company like us can focus our energy on providing the best service for you. If you want to find out more about us then get in touch to find out what we can do to help you out.

Companies will do anything they can to stop you from taking your business elsewhere, but make sure that if you want to you can. Or better yet get someone else to manage it for you! If you think it is time to consider outsourcing your IT then have a look at what we can offer. If you have any further questions then get in touch.


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