Principle 2: Vendors must not create a technical or commercial lock-in

 

Software and cloud are not only less tangible but also younger industries. In this segment, there is still a lot of work to be done before the (business) user will be able to experience the same ease of use with the exchange of data and applications. Vendors continue to innovate at a rapid pace, but most software suppliers and cloud providers are not inclined to make changes in their commercial models and technical architectures regarding switching, interchangeability and standardisation. It would only weaken – in their eyes – their competitive position.

For all organisations and companies software and cloud services are important – if not decisive – production factors, next to many others. In order to allow their customers to achieve sustainable growth, vendors must demonstrate responsible leadership and reduce lock-in around their products and services. After all, in an open innovation ecosystem, switching should not be prevented or limited.

Because vendors want to protect their dominant or unique position, lock-in is in danger of becoming more the rule than the exception in the software and cloud industry:

• Technical lock-in by applying specific technical environment or proprietary formats resulting in a lot of redevelopment or high migration costs
• Commercial lock-in by specific licence management or conditions, cheap/free first year futures or new pricing models resulting in uncontrollable cost of ownership in the future

If you build a house, you know the washing machine will work. On top of that the same water and electricity will work with all other devices too. And you know the cost. As data is thé utility of the data economy it should work with any application, today and tomorrow. And as we all live in houses where our utilities are available on demand we should all endorse this second principle; vendors must not create a technical or commercial lock-in.