Vendor Lock-in

Vendor lock-in (or proprietary lock-in) is defined as a constraint arising from incompatible technologies and restrictive contracts. It occurs when proprietary data silos and high migration costs make switching providers prohibitively expensive.

The risks include losing price-negotiation power, stifled innovation due to vendor dependency, and potential operational collapse if a provider fails.

In Industry 4.0, maintaining digital sovereignty requires two key defensive strategies:

• Open Architecture: Use standardized interfaces to enable interoperability and easy component replacement.
• Open-source Architecture: Ensure transparency and modifiability of internal logic and source code to avoid reliance on a single vendor.

Prioritizing these open standards helps firms avoid proprietary silos and maintain control over their technical infrastructure.