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Glossary

Vendor Lock-in

Dependency on a vendor making switching to an alternative difficult or costly.

Vendor lock-in occurs when a customer becomes dependent on a particular vendor's product or service, making it difficult or expensive to switch to a competitor. In SaaS, lock-in can be caused by proprietary data formats, deep integrations, contractual obligations, or the high cost of migrating data and retraining staff. Assessing vendor lock-in risk before purchasing enterprise software is important for long-term flexibility.