- Two in three say they are held back by being tied to a single supplier
- Dependence on suppliers and platforms is proving costly
- Change increases cost and complexity in the short term
We’re all familiar with vendor lock-in by now, but new research from Reach has highlighted another problem – all-in-one lock-in – which also points to companies and businesses being tied to singular tools without the ability to mix and match the best elements from multiple vendors.
According to the data, more than two-thirds (68%) say their business would grow faster if they were not tied to a single supplier, and 65% expect more revenue. A similar number (67%) of business leaders also claim that the lockdown is preventing them from adapting.
Additionally, being locked into single ecosystems and suppliers, business leaders also report hidden costs (73%), increasing spending by a third (35%) on average.
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Supplier dependency is a much bigger problem
“Businesses often adopt all-in-one platforms for convenience, but what seems simple at first can limit flexibility, increase technology debt, and reduce control as companies expand into international markets,” explained CEO Sam Ranieri.
With so many companies locked into specific ecosystems, two in three are now paying for additional tools and solutions outside of their core platforms, and only 16% are currently satisfied.
However, it’s not as simple as just pulling the plug: almost two in five (38%) worry about downtime or lost sales if they were to switch, with 36% worried about switching costs and 35% saying they don’t have the time or resources to switch.
Looking ahead, companies say they will 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, companies face issues of time, money, and threats of disruption.
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