You probably know from personalexperience how tough it can be to change from one service providerto another.

Think about the last time you changed yourInternet service or gym membership. It was probably a pain, andthere's a reason. Most vendors don't want you to have a seamlesstransition from their product to a competitor's.

But you might not know that someless-trustworthy vendors build roadblocks specifically designed tolock customers into their service. They make it hard for you toswitch vendors so they can raise prices or change policies withoutworrying too much about losing customers — a practice called“vendor lock-in.”

Vendor lock-in happens with cloud computingjust like it happens with other service providers. Some cloudservice providers intentionally make it difficult to transition offtheir platforms. And the stakes are even higher if the vendor hasaccess to your members' data.

What's Your Exit Strategy?

When your credit union first adopts a new technology, it's easyto overlook the problem of vendor lock-in. After all, you'rechoosing the vendor because you like them and you want to use theirservices.

With a cloud service, you can become more efficient, reducecosts and improve your member experience. But once it's time torenew your contract, the vendor in question might have raised theirprices or changed their policies. If that happens, you need to makesure you can make a change without affecting your data or yourmember relationships.

Having your credit union's mission-critical systems and data atthe mercy of a third- party vendor doesn't make sense, especiallyin this type of scenario.

Beware of Proprietary Technology

Some cloud-based software companies use proprietary technologyto lock credit unions into using their products. It might bepossible to transfer to a different system, but the process caninterrupt member services and can be costly.

Most types of software have some kind of proprietary nature, butcredit unions need to make sure the end result of the technologyisn't proprietary. If it is, you risk the possibility of thatcoming back to bite the organization in the long term, potentiallyyears after you may have ended a relationship with a vendor.

Think about electronically signed documents as an example. Ifyour credit union gets documents signed online with a particulare-signature vendor, you want to be sure that those e-signatures canbe proven in court even if you don't have a relationship with thatvendor anymore.

You also need to be sure those documents are valid even if thevendor goes out of business. And this conceptholds true no matter what cloud software you're working with.

One way to protect your credit union is to make sure you usesoftware that adheres to industry standards. Common, establishedstandards give you the assurance that the technology you're usingis compatible with other similar vendors' offerings. Mostimportantly, these standards ensure that a third-party expert caninterpret the data you get back from thevendor.

4 Steps to Avoiding Vendor Lock-In

It's critical that credit unions take control of thedecision-making process and pick a vendor that places a priority ondata flexibility.

It can be hard to figure out whether a vendor is trustworthy orlooking to lock you into their technology. Here are a few steps youcan take to avoid vendor lock-in.

1. Read the fine print of the vendor's policies. If you'reunsure of anything in the policies, ask your IT department or yourlegal team to take a look.

2. Ask the vendor directly how they would facilitate moving yourmembers' data out of their cloud storage repository.

3. Ask if they can digitally shred your members' data from theirservers. If so, make sure their systems comply with digitalshredding standards set by the U.S. Department of Defense.

4. Look for technologies based on trusted third-party standards.This gives you the assurance that your data will still be validdecades into the future.

What if I'm Already Locked In?

As you read this, you might have come to the disturbingrealization that you're already locked in to a software vendor. Theeasiest course of action is to say, “Oh well,” and keep on usingthat vendor, but that can be very dangerous. Every time you usethat vendor's services, the cost of switching vendorsincreases.

Here are four simple steps to end the vicious cycle of vendorlock-in:

1. Revisit your contract. If you're able to break yourrelationship with that vendor, do so as soon as possible. If you'restuck in your contract for a certain period of time, go ahead andplan your strategy so you're ready to get out of the relationshipas soon as your contract is up.

2. Pick a new vendor. Use the tips above to find a vendor thatwon't lock you into their technology.

3. Ask how to migrate off your current systems. Chances are thatyour new vendor often gets new clients from their competitors. Askfor their advice in switching off your current systems.

4. Make the switch. It probably won't be easyto make a switch, after all, that's the point of vendor lock-in.But making the switch will be critical for your credit union'sfuture.

EmilyMaxie is marketing director at SIGNIX in Chattanooga, Tenn.