What is lockin?

Lock‑in (or vendor lock‑in) is when a user or a business becomes dependent on a specific product, service, or technology, making it hard, costly, or inconvenient to switch to a different one. The dependency can be due to proprietary formats, unique features, contracts, or the amount of data and training already invested.

Let's break it down

  • Proprietary technology: The provider uses a format or system that only works with their own tools.
  • Data migration cost: Moving data to another platform may require expensive conversion tools or manual work.
  • Skill investment: Employees learn how to use the product, so switching means retraining.
  • Contractual lock‑in: Long‑term contracts or penalties discourage leaving early. All these factors create a “sticky” situation where leaving feels risky or too costly.

Why does it matter?

When you’re locked in, you lose bargaining power. Prices can rise, features may stagnate, and you might miss out on better alternatives. It also limits flexibility, making it harder to adapt to new business needs or emerging technologies.

Where is it used?

  • Cloud services (e.g., using a specific provider’s storage APIs)
  • Software platforms (e.g., CRM, ERP, or project‑management tools)
  • Mobile ecosystems (e.g., apps that only run on one operating system)
  • Hardware ecosystems (e.g., accessories that only fit a particular brand)
  • Subscription services with long‑term contracts

Good things about it

  • Integrated experience: Providers can offer tightly integrated features that work smoothly together.
  • Support and updates: Staying with one vendor often means consistent updates and dedicated support.
  • Potential discounts: Long‑term commitments can lead to lower pricing or special deals.
  • Simplified management: Fewer vendors mean fewer contracts and a single point of contact.

Not-so-good things

  • Higher costs over time: Prices may increase once you’re dependent.
  • Limited choice: You may miss out on innovative features from competitors.
  • Risk of vendor failure: If the provider goes out of business or changes direction, you’re left stranded.
  • Migration headaches: Moving away later can be time‑consuming, expensive, and technically complex.