But all these vendors have a big portfolio of other solutions that they will manipulate into these Enterprise Agreements, and in the end, your business will be stuck with shelf ware. They all have their core products, for example, Microsoft Office & Windows, Oracle with its database software, ServiceNow with its service management, and so on.
#POT COMMITTED SOFTWARE#
This is not always a bad idea but there is no software vendor that is best in every area, even if their salespeople want to believe so. When you are entering these enterprise-type agreements, you put all your eggs in one basket. This is similar to being committed to playing a hand in poker as the investment in the pot has been too great to fold. The problem is that the existing vendor’s solution is a poor imitation for what you need. In relation to the first reason, organizations rarely provide budget to buy another solution if something similar is included in your “all-you-can-eat” Enterprise Agreement.
I f you exit you r agreement, you must re – buy all existing software/solutions that you are using or pay prohibitive exit fees. You have invested so much money that you cannot change due to perceived loss of investment. But if we get back to the sales process, you want to consolidate the number of vendors and applications in your environment and the software vendor is offering you a high-profile agreement. Usually, these agreements are “all-you-can-eat” type contracts with fixed payments. Sounds good? the problem is commitment, as invariably you will be required to move to that vendors technologies and solutions out of necessity or encouragement. Once those vendor technologies are deployed, there is no going back. Two reasons that you cannot change now are: This is a great initiative if it works. Unfortunately, these capabilities are often oversold by the vendor – the integration never happens, and you could end up paying huge sums for shelf ware. You have one or several products from this vendor already and most businesses want to consolidate and integrate more of their infrastructure and applications. The software vendor wants you to commit more of your software portfolio with them. This appears to be most common among bigger vendors and concerns enterprise type customer agreements (Oracle ULA, Microsoft EA, IBM, SAP and ServiceNOW). Let me elaborate… 
It is accepted in the industry that many software vendors use lock-in agreements as sales tactics to hold on to your business. How Software Vendors Use Lock-in Agreements or Committed Investment Guilt to Retain Your Business
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