Strategic Advisory

Vendor Lock-In Risk Assessment

Answer 7 questions to evaluate your organisation\x27s exposure to vendor lock-in and identify strategies to increase flexibility.

70%+
Orgs Locked In
7
Questions
3 min
To Complete
Question 1 of 7Strategic Advisory
Question 1 of 7
🔒
How many of your enterprise software vendors would be difficult to replace?
High switching costs = high lock-in. Each vendor that cannot be replaced easily gives that vendor pricing power.
None — alternatives evaluated for all vendors
1-2 vendors would be difficult to replace
3-5 vendors with high switching costs
Most vendors would be very difficult to replace
Question 2 of 7
📜
Do your contracts include favourable exit terms?
Termination for convenience, data export rights, and transition assistance clauses reduce lock-in risk.
Exit terms negotiated for all major contracts
Some contracts have exit terms
Most contracts lack favourable exit terms
Never negotiated exit terms
Question 3 of 7
📂
Can you export your data from each vendor in a usable format?
Data portability is the ultimate test of lock-in. If you cannot extract your data, you cannot leave.
Yes — data export tested and documented for all
Possible for most vendors — not all tested
Uncertain — data export not evaluated
No — proprietary formats or data locked in
Question 4 of 7
⚙️
How deeply integrated are your vendors with other systems?
Deep integrations create technical switching costs. API dependencies, custom connectors, and shared workflows increase lock-in.
Loosely coupled — standard APIs and interfaces
Moderate integration — manageable to replace
Deep integration — significant effort to decouple
Deeply embedded — vendor is core to operations
Question 5 of 7
👥
Do your teams have skills for alternative platforms?
Skill lock-in is often overlooked. If your team only knows one platform, switching costs include retraining.
Cross-platform skills across the team
Primary platform skills with some alternatives
Team skilled only in current vendor platforms
Heavy reliance on vendor-certified specialists
Question 6 of 7
💰
What percentage of your total IT budget goes to your top 3 vendors?
Concentration risk amplifies lock-in. If 3 vendors consume most of your budget, those vendors have disproportionate power.
Under 30% to top 3 vendors
30-50% to top 3
50-70% to top 3
70%+ to top 3 vendors
Extreme concentration risk
Question 7 of 7
🔄
Do you regularly evaluate alternatives to your incumbent vendors?
Regular evaluation maintains market awareness, keeps vendors competitive, and provides negotiation leverage.
Formal evaluation cycle for all vendors
Occasional evaluation of alternatives
Only evaluate when forced by major events
Never evaluate alternatives

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