Vendor lock-in happens when a customer willingly submits to a hardware, software, or service provider in exchange for a “must have” technology, making it difficult to switch to a competitor without substantial cost or effort. In almost all such situations, it’s the provider that benefits most from the arrangement.
IT vendors offer multiple incentives to customers to remain within their portfolio of products, says Tim Potter, a principal with business advisory firm Deloitte Consulting. “Some common lock-in techniques include charging customers for data leaving the vendor’s platform or … providing additional services that work…