The Entanglement Matrix

Kraljic measured the risk of not getting the thing. Software's risk is the cost of already having it. Every software account carries a growth number. If you expand, they get it from volume. If you don't expand, they get it from price. There is no version where your spend stays flat. That makes every interaction a commercial one, whether or not anyone in it thinks so.

Bubble size = annual cost

Score the two axes

One is the left description, three is the right, two is somewhere between.

This agreement

Name it, price it, plot it.

Ability to exit

Can you actually leave

OUTSIDE marks lock-in that isn't yours to fix. Internal switching cost is expensive, but you can buy your way out of it. External sits in your supply base or the labor market, and no budget resolves it.

Supplier visibility

How much of you they can see

Switching cost: remaining term, integrators, integration rebuild, retraining, and the parallel run while both licenses stay live. The parallel run is usually the largest line and the one left out.

Plotted