Own your data, code, and accounts when you adopt AI

Lock-in is not a conspiracy. It's what happens when you build something valuable with someone else and they keep the keys.

When a vendor owns your data, your code, or your accounts, you are trapped. You cannot leave without losing months of work or paying a ransom. You cannot negotiate harder because they know you are stuck. You cannot run the tool yourself if they go out of business or stop supporting it. And you cannot hire someone else to improve it without starting over.

This is not theoretical. A dental clinic in Kelowna built a scheduling system with a vendor five years ago. The vendor owns the code and the data. The clinic now pays $800 a month for a tool that would cost $200 a month to run anywhere else. They have asked to leave three times. Each time, the vendor quoted $15,000 to export the data and train someone new. The clinic stays because the cost of leaving is higher than the cost of staying.

What vendors own, and why

Vendors lock you in because it works. Once you depend on them, they can raise prices, reduce service, or simply stop improving the product. You stay because the switching cost is too high. This is not evil. It is how software business works. But it is not how your business should work.

There are three things a vendor might own:

Your data. This is the invoices, customer records, job histories, and decisions your business has recorded inside their tool. If they own it, you cannot get it out in a form you can use. You cannot move to a cheaper tool. You cannot analyse it yourself. You are renting access to your own information.

Your code. This is the instructions they write to make the tool do what you need. If they own it, you cannot hire someone else to fix it, improve it, or move it. You cannot see how it works. You are dependent on them to maintain it forever.

Your accounts. This is the login, the API keys, the integrations they set up on your behalf. If they own them, you cannot disconnect them, move them, or control who has access. You cannot audit what they are doing. You are dependent on their permission to make changes.

Most vendors will own all three if you let them. Some will own one or two. A few will own none. The difference is thousands of dollars a year, and years of independence.

What you should own

You should own your data. Full stop. This is not negotiable.

Your data is your business. It is the record of what you have done, what your customers want, what works and what does not. If a vendor owns it, you are renting your own history. You cannot leave. You cannot learn from it. You cannot use it anywhere else. Insist that your data lives in a database or file system you can access, export, and understand. If they say this is not possible, they are not being honest.

You should own your accounts. This means you create the logins, you hold the passwords, you control who has access. You should own the integrations they set up on your behalf. If they own them, you cannot disconnect them without their help. If they go out of business, you are stuck.

You should own the code they write for you. This is harder to negotiate, because most vendors will not agree. But it is worth asking. If they write custom code to make their tool work for you, you should own it. This means if you want to move to a different tool, or hire someone else to improve it, you can. If they say the code is proprietary or a trade secret, ask what exactly is secret. Usually the answer is vague. Push back.

If they will not give you the code, ask for the next best thing: the right to use it, modify it, and move it if you hire a new builder. This is called a licence. It is not as good as owning it, but it is better than nothing.

What it really costs

Lock-in is expensive, but not in the way you think.

The direct cost is the switching fee. A property manager in Surrey paid $5,000 to export their data when they left a vendor. A plumber in Richmond paid $3,000 for a builder to rewrite their custom code. These are real costs, but they are one-time.

The hidden cost is the years you cannot leave. A distributor in Calgary stayed with a vendor for three extra years because the switching cost was too high. They paid $400 a month more than they would have elsewhere. That is $14,400 in extra fees. When they finally left, they had to hire a builder to rewrite the code. That was another $8,000. The total cost of lock-in was $22,400.

But the real cost is the negotiating power you lose. Once you are locked in, the vendor knows you cannot leave. They can raise prices. They can reduce support. They can stop improving the product. You have no leverage. An accounting firm in Burnaby asked their vendor to add a feature. The vendor said no. The firm asked a competitor. The competitor said yes, but the switching cost was $12,000. So the firm stayed and paid $150 a month extra for a feature they did not want, for two years, because they could not afford to leave.

The cost of lock-in is not the exit fee. It is the years of higher prices, worse service, and no choices.

How to stay in control

Ask one question before you sign anything: "Who owns the data, the code, and the accounts we set up together."

If the answer is vague, keep asking. If they say "we do", ask what that means. Can you export your data in a standard format. Can you use the code elsewhere. Can you disconnect the integrations yourself. If they say "it depends", ask what it depends on. If they say "we will own it", ask why. Most of the time, they cannot give you a good reason. They just want the lock-in.

If they will not agree to let you own your data, do not sign. This is a red flag. It means they are betting on lock-in, not on being good enough that you want to stay.

If they will not agree to let you own your accounts, do not sign. This is a red flag. It means they do not trust you with your own integrations.

If they will not agree to let you own the code, negotiate a licence. Ask for the right to use it, modify it, and move it. Ask for the code in a format you can understand and improve. Ask for documentation. If they will not give you these things, you are locked in.

Where to start

• Before you talk to any vendor, write down what data you will be putting into the tool and who should own it. Talk to your accountant or lawyer if you are not sure. Then ask the vendor: "Who owns this data. Can we export it in a standard format. Can we do it ourselves, or do we need your help." Write down their answer word for word.

• Ask the vendor to show you an example of a similar project they have done. Ask the customer who paid for it: "Do you own your data. Can you export it. Do you own the code they wrote for you. Would you do it again." Most customers will say yes or no. If they hesitate, that is a warning sign.

• If you are building custom code, ask the vendor to put in writing who owns it, what you can do with it, and what happens if you want to move it elsewhere. If they will not put it in writing, do not sign. A handshake is not a contract. A contract is a contract.