This is a philosophical discussion. In fact, switching barriers are one of the points that are argued during the open vs. closed information debate. Open-ness encourages trial of products and services while closed-ness encourages brand loyalty. As developers and entrepreneurs we have to look at out our philosophical view on information (our software, products, and services) and come to resolution with our business goals.

I was inspired by a comment I got on my post about Microsoft, Linux, and being professionally pidgeon-holed. The commenter brought up the point of “lock-in” when using Microsoft.

I agreed, and responded that people, like myself, are willing to be “locked-in” if the product or service provides some value, real or imagined. For example, look at the recent iPhone distaste about the AT&T contract. Look at the iPod and DRM. Look at your car and any modifications you purchase. Look at your gym membership. Though they create artificial ways of locking you in, all those products and services continue to flourish!
Corporations look to lock you in and create switching barriers to keep you loyal. They do it with termination fees (such as gym memberships), with investments in proprietary equipment (such as digital gadgets), by holding your data hostage (such as iPod/iTunes).

As entrepreneurs and developers we need to make these decisions all the time, do we use proprietary protocols or open standards? Do we use a third party proprietary software because it’s cheaper and faster? Do we follow our philosophical views and stay away from closed software and standards? Do we make it difficult for customers to switch?

Switching barriers are an important part of the competitive landscape. Look for barriers that you can create and figure out how to break down the barriers of your competition. Think hard when developing your business or your software, what barriers are you willing to create? What barriers will your customers tolerate?