- Two in three say they're being held back by being tied into a single provider
- Vendor and platform lock-in is proving costly
- Switching adds to the cost and complexity in the short term
We're all familiar with vendor lock-in at this point, but new research from Reach has highlighted another issue – all-in-one lock-in – which also points to enterprises and businesses being tied to singular tools without the ability to mix and match the best elements from multiple providers.
According to the data, more than two-thirds (68%) say their business would grow faster if they weren't tied to a single provider, with 65% expecting more revenue. A similar number (67%) of business leaders also allege that lock-in prevents them from adapting.
Moreover, by being locked into single vendors and ecosystems, business leaders are also reporting hidden costs (73%), increasing spend by one-third (35%) on average.
Vendor lock-in is a far biggest problem
"Companies often adopt all-in-one platforms for convenience, but what looks simple at the outset can limit flexibility, increase tech debt and reduce control as businesses expand into international markets," CEO Sam Ranieri explained.
With so many companies locked into specific ecosystems, two in three are now paying for extra tools and workarounds outside of their core platforms, and only 16% are currently satisfied.
However, it's not as simple as just pulling the plug – nearly two in five (38%) worry about downtime or lost sales if they were to switch, with 36% concerned about switching costs and 35% stating they don't have the time or resources to switch.
Looking ahead, companies say they're set to focus on customizing tools to specific business needs (56%) more than anything else, but also that they want to take full ownership and control of their data (42%).
All in all, Reach expects software stacks to change, citing flexibility and modularity as emerging trends, but for now though, businesses are being left struggling with time, money and threats of disruption.
