EDI Software Vendors Driving Forced Migrations and Customer Changes

Is your EDI software vendor forcing an upgrade?

Is your provider pushing a managed service?

Have you been told you have to migrate to a different network?

Do you feel like you are losing control of your B2B activities?

You are not alone…

Is This Upgrade For You or Your Provider

The software space has been in a transition for well over a decade to move from on-premise software to cloud and this has put burdens on their bottom lines as they transition from software licenses to monthly subscriptions. This pursuit to transition revenue and force customers to change has encouraged some indecent behavior from market participants and vendors.

Why Would Companies Make Decisions That Could Impact Customer Success?

Has your provider been acquired and needs to cut costs? This is common for EDI vendors after a couple of big players have been rolling up competitors and maximizing profit to the detriment of customer satisfaction in the search for profits.

CUSTOMER IMPACT: Forced migration to go forward services, even if it burdens their customers’ IT organizations and reduces the quality of the solution or support.

Is your on-premise software vendor forcing a version upgrade? The race to the cloud creates challenges for legacy vendors and customers, as the investor expectations of recurring revenue and challenges of revenue recognition could make the customer the last one considered for product decisions.

CUSTOMER IMPACT: Testing and potentially integration adjustments that are not part of the IT roadmap and impact priorities. Most of this effort is not for increased value, just mitigating supportability risk.

What are your options?

1. Status-quo:  Stay where you are and just do the work. This approach limits your team’s ability to look at future requirements and often keeps you locked into a vendor with proprietary skills being required and a legacy architecture that does not support the agility or breadth of capabilities you need as the market and your trading partners move to modern technologies. For many, this option is just work for work’s sake without incremental ROI, just the ability to keep the lights on.

2. Lift and Shift: This is a common recommendation from your current vendor to move to a cloud version or a managed service which introduces increased costs and loss of control of your destiny. This is a common approach for companies to transition the EDI software license to an ongoing subscription-based revenue.

3. Drop and Shop: If you need to make an investment of time and money for upgrades, this might be a viable opportunity to improve your position and move to open technologies more representative of the skills, focus, and trends in the market. EDI, APIs, Webservices, and integration technologies have changed significantly in the last 3-5 years, and several legacy architectures may require you to still buy more software to meet the changing landscape in B2B integration.

Make This Change Work To Your Advantage

Change is rarely fun and always scary, but at the end of every change is a different reality and hopefully, you can leverage such an event to improve your position as a company today and in the future. Loren Data understands the challenges many EDI professionals are being forced into by their solution provider and can help future-proof your efforts by providing an open, cloud-based integration and EDI translator fully integrated into a global back-bone network not available from other EDI VANs and managed service providers.

Loren Data’s ECGrid Simplify provides real options for companies being forced to change by their vendors. ECGrid Simplify can drive immediate improvements in your operations with fewer points of failure, resulting in increased control of your B2B communication and frictionless EDI activities with your trading partners. With over 25 years in the industry and an exceptional customer satisfaction record, it’s wise to explore ECGrid for your business and peace of mind.  


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