Say goodbye to vendor lock-in with a cutting-edge composable DXP

Highlights

You’ll learn how a composable DXP reduces vendor lock-in and fosters innovation by:

• Offering modular, flexible architecture that allows you to integrate solutions from multiple vendors
• Supporting a cost-effective approach where you integrate only what you need
• Supporting the use of APIs, allowing you to connect with third-party solutions

Businesses continue to see gains in composability, and Gartner predicts that 70% will opt for composability by 2026. However, there is still a challenge—vendor lock-in. As businesses aim to innovate, they need to build around systems that allow them to be flexible. 

A composable DXP supports that. Its modular design allows you to select technologies and services from multiple vendors, helping you overcome the constraints of vendor lock-in and fostering innovation and flexibility.

Understanding composable DXPs

A composable DXP is a modular and flexible digital experience platform (DXP) that allows you to integrate best-of-breed solutions to serve your business needs. Unlike traditional DXPs that limit you to specific vendor solutions, you can control what goes into the platform. A typical one has these features;

• Modular: Allows for seamless integration and customization
• API-first: Ensures interoperability with various systems
• Microservices: Supports scalability and independent component updates

A composable architecture is ideal for reducing vendor lock-in. You can select modules from any vendor and connect them with APIs. But just how serious is vendor lock-in? 

The risks of vendor lock-in

Vendor lock-in occurs when a business becomes dependent on a vendor, so switching to other options becomes unrealistic. It could happen for several reasons, such as:

• Proprietary technologies that are not compatible with other tech solutions
• High switching costs, including financial, time, and IT resources
• Long-term contracts that attract penalties for early termination

In other cases, there may also be issues with data portability or deep integration or customization with a vendor’s product. In these cases, shifting to new technologies would require excessive IT resources and reconfiguration. So, what are the risks of vendor lock-in?

Effects of vendor lock-in on business enterprises

Lock-ins limit how far a business can go. You can end up with services that do not add value to your business, like monolithic DXPs. Here are other negative effects of vendor lock-in.

• It inhibits innovation and restricts your ability to adopt new technology.
• It limits scalability and stops you from adapting to market and tech shifts.
• It can leave a business stuck with a declining technology solution.
• It can disrupt business operations if the vendor runs into financial issues or service disruptions.

Think of it this way. Imagine going into a fight with one hand tied. Your whole movement becomes limited, putting you at a disadvantage. That is how vendor lock-in works; however, a composable DXP addresses it in simple ways.

How to reduce vendor lock-in with a composable DXP

Although a composable DXP, by its modular nature, reduces vendor lock-in, there are other steps you can take to manage issues related to vendor lock-in.

• Leverage open standards: Ensure that your DXP supports open standards and protocols so that it can work with different systems and vendors.
• Engage with multiple vendors: Have a multi-vendor strategy to avoid reliance on a single provider. This gives you stronger bargaining power and allows you to be more flexible.
• Conduct due diligence: Before committing to a vendor, evaluate their roadmap, compatibility with other systems, and the potential for future integration with other tools.
• Embrace composable commerce: If you are in retail, build your e-commerce solutions with various independent units. That way, you reduce reliance on a single vendor's ecosystem.

Benefits of composable DXPs in reducing vendor lock-in

Composable DXPs offer several features that help you reduce vendor lock-in, such as:

• Flexibility: You can select digital solutions that fit your business needs. You can work with multiple vendors and swap out and add modules when your business needs change. So, if you need a personalization solution, you can integrate that on top of your existing business technology.
• Ease of integration: Composable DXPs rely on APIs to connect disparate systems. So you can integrate new technologies with your existing systems.
• Scalability: You can easily scale your digital operations without being tied to a specific vendor solution. So, if you need a language feature to move to a new region, you can integrate it into your tech stack.
• Cost-effective: You avoid proprietary systems and the high cost of maintaining them. Also, since you build the DXP, you only integrate what you need. This allows you to reduce costs and improve ROI.

Case study

Schweitzer Engineering Laboratories (SEL)

Before adopting Contentstack, SEL was locked into a solution suitable for a medium-sized business. The CMS could not support their growth, and they needed a modern solution to manage their customers in 171. They built a homegrown solution to handle it, but it was limited.

Contentstack was chosen as the solution for SEL. The headless CMS became the content hub, powers its website, and serves as the knowledge hub for its community. It allows them to manage 171 product locations and localize content in 5 languages.

Brian Dorgan, the Engineering Manager of Information Services, said, "What stands out to me is how easy a time everybody has had working with Contentstack. The developers have found the APIs simple to use, the editors found it intuitive to get in and edit the content, and whenever we wanted to try something new — Contentstack already had what we needed. We never needed to work around the tool; from day one, it did what we needed it to do."

Read more to learn how SEL reduces complexity and streamlines innovation with Contentstack.

Implementing a composable DXP strategy

To successfully implement a composable DXP strategy, businesses should follow these steps:

• Assess current stack: Identify existing technologies and their integration with potential new components.
• Identify relevant components: Outline your business needs and customer preferences. Then, identify vendor solutions that address those needs. Ensure the solutions are within your budget and compatible with your existing tech stack.
• Select compatible technologies: Choose interoperable solutions that align with your business goals. Consider your customers' needs, user experience, and future goals.
• Implement via phased approach: Integrate new components gradually to minimize the risk of operation disruption and give your team adequate time to adapt.

Overcoming challenges in adopting composable DXPs

You may need to adapt your business processes or adjust to the new tech ecosystem after adopting a composable DXP. Here are common issues and how to manage them.

• Tech complexity: It can be challenging to transition from an all-in-one system to a modular one. Ensure you understand the role of each module and how to connect them via APIs.
• Seamless integration: Use extensible APIs to connect system features exposed as endpoints. Ensure that the APIs are secure and robust. They should also be documented to make them easy to use in the future.
• Training and support: Invest in training to equip teams with the right skills to manage the new system. Also, seek the help of the DXP vendor to provide support during and after setup.

Maximizing ROI with composable DXPs

A composable DXP delivers a high return on investment provided a business focus on these areas;

• Long-term cost savings: Evaluate the cost reduction associated with reduced vendor dependency. Also, consider the more efficient use of resources that leads to increased operational efficiency. For instance, content reuse saves time and resources. 
• Future-proofing: Embrace composability to stay ahead of tech shifts and industry trends. You can integrate new features and technologies without investing significant IT resources, saving cost and time while supporting innovation. 

Measuring success and ROI

Outline success metrics to enable efficient tracking. Common KPIs may include customer satisfaction scores (CSAT), net promoter scores (NPS), and referral rates. These metrics measure the rate of customer satisfaction with the user experience. 

You can also track other measures, such as publishing time, page load speed, and time to market. When these metrics start to improve, it is a clear pointer that you are reaping the benefits of a composable DXP. Finally, track revenues to see what direction it is taking.

FAQ section

What is the difference between a composable DXP and a traditional DXP?

A composable DXP is modular and flexible and allows you to integrate solutions from various vendors. In contrast, traditional DXPs are tightly coupled and vendor-specific.

How does a composable DXP reduce vendor lock-in?

Given that it is modular, businesses can integrate or switch any solution of their choice. They are not tied to the digital solutions offered by the DXP vendor. 

Can small businesses benefit from composable DXPs?

Yes. A composable DXP suits any business that wants to run a flexible operation. It saves costs, and it also provides the tools that allow a business to scale.

How does a composable DXP improve ROI compared to traditional DXPs?

It supports content reuse; you only integrate what you need to use, and you can always swap out or update any module without reconfiguring the entire system. This saves cost, improves speed, and leads to better customer experiences and higher revenues.

Learn more

A composable DXP offers a modular and flexible approach that allows you to integrate only relevant solutions. You can also swap out obsolete modules, replacing them with ones that are more relevant to your business needs. This enables you to prevent vendor lock-in.

With composable digital experience platforms (DXPs), you are never tied to specific vendor solutions. Instead, you have the freedom to build a digital experience that serves your business goals. This allows you to innovate and future-proof your digital strategy. 

Contentstack offers the leading composable DXP with solutions for multiple use cases and industries. There are solutions for e-commerce, personalization, and localization. You can also access solutions for retail, financial services, sports, technology, and other industries. Talk to us today to get started.