The Art of CTO Vendor Lock-in Exit Strategy Framework assesses lock-in risk across data portability, API dependency, and switching costs, then generates phased migration plans and contract negotiation strategies.
Frequently Asked Questions
How do you assess vendor lock-in risk?
Evaluate lock-in across six dimensions: data portability (can you export in standard formats), API dependency (proprietary vs standard interfaces), feature exclusivity (vendor-specific capabilities you rely on), switching cost (migration effort estimate), alternatives availability (viable competitors), and knowledge lock-in (team expertise specific to this vendor). Score each 1-5 and weight by annual spend to calculate risk exposure. Vendors scoring above 70/100 on lock-in with critical business functions warrant immediate exit planning.
When should you start planning a vendor exit?
Start exit planning proactively — before you need it. Key triggers include: price increases exceeding 20%, repeated service degradation, vendor acquisition by a competitor, contract renewal approaching within 12 months, or identifying a significantly better alternative. The best practice is to maintain abstraction layers around critical vendors from day one and review lock-in risk quarterly. The cost of planning an exit you never use is negligible compared to the cost of an emergency migration.