Alle boeken

Professioneel

Apps Over Coach Inloggen Begin met lezen

Quantitative Finance · Begrippenlijst

Wat is Vendor lock-in, switching cost?

Ook bekend als: vendor lock-in · switching cost

Definition 20.4 The Desk and the Firm · Hoofdstuk 20 — Build against Buy

Vendor lock-in is the dependence on a vendor that makes leaving it costly: data in its formats, workflows built around its product, integrations, skills and contracts. The switching cost is what leaving costs: migration, parallel running, retraining, termination fees and the risk of disruption.

The first three years of the renewal-price tree: the vendor’s price multiplier rises 30% with probability 0.3 at each renewal. The best policy switches vendor once the price has risen twice, from year 3 to year 6; in year 7 only after four rises. Data: firm.buildbuy.switch_policy.
Figure 20.3. The first three years of the renewal-price tree: the vendor’s price multiplier rises 30% with probability 0.3 at each renewal. The best policy switches vendor once the price has risen twice, from year 3 to year 6; in year 7 only after four rises. Data: firm.buildbuy.switch_policy.
Lees in het hoofdstuk →