Technology dependency and the hidden risks that can paralyse a business
Updated: Oct 29
When building IT and cybersecurity infrastructure, companies map their business needs or the problems to be solved, put technology options and partners on the table, assess them and make their choices.
That is, when they start from a blank page or from a very poor position. Once something that works has been built, the usual and understandable path is to build a single ecosystem, and the range of options keeps narrowing. Solutions are added from the same vendor and from vendors integrated with its products, and more services are bought from the same partner.
This behaviour makes perfect sense. Dealing with fewer vendors takes less time. A single management console saves on administration costs. Larger purchases from the same vendor mean bigger discounts. A reliable partner is worth its weight in gold and does not need to be checked: they know you and stand up for your interests.
But every coin has two sides, and dependency always brings risks. If we are not aware of them, we may one day find ourselves in a situation where our business is at risk.
Why is dependency a problem?
IT dependencies should be assessed as soberly as financial debt or supplier risk in manufacturing. When technology relies too narrowly on a single vendor or on a politically risky country of origin, four main risks follow:
Supply chain risk: will updates and spare parts for critical software or hardware be available in a crisis?
Financial risk: could a change in pricing policy or an aggressive licensing model update suddenly blow the budget?
Political risk: does your IT depend on countries whose strategic interests may not align with ours?
Regulatory risk: does your IT comply with NIS2, GDPR, ISO 27001 and other standards, or are breaches already built in?
These are strategic business risks, and if they materialise, the result can be lost profitability, stalled operations or leaked intellectual property.
A good example of the real impact of vendor lock-in and of financial risk materialising is Broadcom’s acquisition of VMware. After the deal closed in 2023, the pricing and licensing models were changed quickly: the flexible perpetual licence disappeared, prices rose sharply, and many companies were left with no realistic alternative in the short term. This is the essence of vendor lock-in: when your entire virtualisation environment and business-critical systems depend on one vendor, you are forced to accept terms that may be neither economically nor strategically sustainable.
Today we see organisations affected by this example moving en masse to alternatives such as Proxmox. But by now, a large part of the cost has already been incurred.
Examples of financial risks from lock-in materialising can be found in the collaboration software used by most companies as well as in the local telecoms market.
And many managers can readily give examples of supply chain risks materialising.
Why do you need to know your company’s dependencies?
Dependency in itself is not always bad. Some technologies or partners can offer such good value that deliberately committing to them makes sense. The bigger problem is when we do not know:
which partners, vendors, products and countries the company depends on;
how high the risk profile is;
what alternatives exist;
how much time and budget switching would take;
how additional choices affect dependency and switching costs.
It is precisely this awareness that separates a company that can adapt quickly in the future from one that faces a crisis with its eyes shut.
Assess your company’s technology dependencies!
Replicant IT’s rapid technology dependency analysis is designed for companies that want a clear, fact-based picture of their IT technology dependencies and the risks that come with them.
The analysis provides:
• a visual dependency map,
• an assessment of the level of vendor lock-in and of regulatory, supply chain and financial risk,
• a prioritised action plan for mitigating the main risks.
The report is structured to support NIS2, ISO 27001 and ISO 9001 compliance, and the awareness gained from the assessment strengthens your negotiating position with technology providers.
Write to us to book a quick free call. We will prepare an offer for the assessment and take a bold look at your IT dependencies and risks.
Burying your head in the sand does not make problems smaller.
