When companies get an ERP software, they may not realise how complicated vendor lock-in can be, or not class it as a problem at all… until it becomes a big bottleneck. In this post, we break down what vendor lock-in means in the context of ERP, why you should avoid it and how Odoo ERP allows you to ensure full ownership of your company’s data.
Why is vendor lock-in a problem in the ERP industry?
Unfortunately, some business software providers create a dependency where you are forced to rely on their infrastructure, software, and support, leaving no way out. For customers, this means…
- Losing all their flexibility
- Having no bargaining power
- Being more easily exposed to security risks
- Not having full ownership of their data
As a norm, big players in the business software market make it easy to get started but very difficult to leave. This can cause various different blockers like:
- Customers being charged for extraction of their own data
- Databases made overly complex to migrate
The end-user part of a software being made proprietary to the vendor so customers have zero ownership of even their own processes
How is Odoo different?
Odoo is actively challenging this industry-wide problem. Their CEO Fabien Pinckaers even took to LinkedIn to discuss how ERP vendors often lock in their users, and highlighted how Odoo moves away from this outdated approach. Unlike others that make switching from old systems difficult, Odoo ensures that data is easily accessible and transparent. In Fabien’s words, Odoo enables companies to…
- Own their data to leave or integrate Odoo
- Own their software to customize Odoo
- Own hosting to switch easily (SaaS, Odoo.sh, On-Premise)
How can you avoid ERP vendor lock-in?
Vendor lock-in may be difficult to step out of – however, it is entirely preventable. To combat vendor dependency, companies need to be mindful of contracts and have knowledge of their own data above all. These are some of our tips to avoid ERP vendor lock-in before it’s too late:
- Opt for openness: ERPs with open standards simplify integrations, and most importantly reduce dependencies on proprietary technologies. This gives you ownership of your data instead of the vendor company. Choosing an open-source software (like Odoo) will further increase your flexibility to do exactly what you want with your system and data, zero strings attached.
- Read the fine print: This is where legal and IT should come together. It’s crucial to analyse contractual policies and how they may affect the data that the software will be storing – from proprietary clauses to data extraction and database models. Contracts where users are locked in rely on ambiguity to keep customers trapped. Make sure to clarify any contractual doubt, even if it means spelling everything out.
- Ensure your data is movable: Data portability is a key consideration to have when negotiating contracts for an ERP. Any data must be easily exported in standard formats and without corruption or loss to mitigate any risks associated with migrations.
Ready to make your ERP data your own property?
Want to avoid ERP vendor lock-in and guarantee full transparency and flexibility of your system? Our experts can guide you through your Odoo implementation project, ensuring that you have full ownership of your ERP data! Contact us now for a direct discussion on how to implement your Odoo ERP system and safeguard your data.