Vendor Lock-In

Vendor lock-in refers to a situation where a customer becomes dependent on a particular supplier or service provider for products or services, making it difficult to switch to another provider without incurring high costs or disruption. This often happens due to proprietary technology, specialized training, or unique features that are not compatible with other systems. As a result, businesses may feel trapped and limited in their choices, leading to less competitive pricing and reduced flexibility in adapting to new market conditions. Vendor lock-in can occur in various sectors, including software, cloud services, and hardware.