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The False Economy: Paying a Premium for Poor Solutions
Sticking with an inefficient security solution isn’t a financial decision, it’s a cognitive bias. Learn to identify if you’re overpaying and how to find a better alternative.

In the world of IT, we like to believe hard data and bottom-line economics drive our procurement decisions. However, in reality, they are often driven by a Psychological Shield.

A recent survey found that over 90% of IT leaders who are dissatisfied with their current database and application security solutions don’t switch because the alternatives are too expensive. Cost was the primary reason, not a lack of time or alternatives.

A price barrier is a solid reason, and these managers believe they are saving money by tolerating the inadequate solutions they currently use.

However, most solutions in the market are priced similarly or below what these companies are currently paying. So what’s going on?

The Data Barrier

Decision makers face a clear problem: a lack of data. They don’t know the current pricing of every competitor. They also don’t know when new competitors arrive on the scene and how they are priced.

Without current pricing data, you cannot possibly know your solution is the best deal around.

The challenge is that compiling pricing data is time-consuming since requesting a quote from every vendor requires effort. However, it is the only way to make data-driven decisions, and proactive managers make it a habit to perform annual evaluations of market conditions.

You Can’t Predict Prices

The managers in the survey assume the solutions they dislike are the “budget-friendly” options, and that migrating to superior technology will come with a higher price tag.

It seems like a logical assumption. However, that’s not how the IT market behaves, as pricing is often detached from technology, quality, or value. Other solutions may suffer from other limitations, but since you are unhappy with the limitations of what you have, there’s a good chance the alternative will be an improvement.

We tend to assume that whoever offered us the best deal yesterday is also the most competitive alternative today. However, companies change pricing all the time. Just as you can often get a better deal by switching your personal phone and internet plans. The IT market is no different, and competing vendors will often discount to win your business.

Past Decisions

There is a second, more subtle psychological force at play: the sanctity of the original decision. Most IT leaders or procurement teams who selected the current security stack did so with the best intentions at the time. To re-evaluate that decision and switch to a competitor is implicitly perceived as an admission that the original choice was flawed, not that market conditions changed.

Teams default to defending their past choice rather than admitting the reality that the landscape has changed. They lock themselves into a “sunk cost” mindset, protecting the status quo because it is comfortable, not because it is effective. They stay because they want to be right, not because it is the right thing to do.

The Inertia Factor

There is another psychological factor: conflating price and effort.

Evaluating new vendors, performing proofs of concept, migrating data, and retraining staff can feel like a burden rather than an investment. It takes time and energy, which, for many, can feel like a “cost”. It is far easier to assume that the incumbent solution is the most economical choice than to validate that assumption.

While it might not be realistic to switch solutions every year, it is also a good idea to know the reality and not hide behind obsolete pricing data.

Real Barriers

There are real barriers to changing vendors. It takes time and effort, and involves operational risks. However, those real barriers should be evaluated based on their merit. Dismissing the concept by claiming that the alternatives are just “too expensive” leaves you stranded with overpriced, poor tech that gets more expensive every year.

At the same time, using “locked-in” as an excuse is another pitfall. Always make a balanced evaluation of alternatives and costs to discover whether a change is a worthwhile investment.

Sometimes, even performing an evaluation, not to mention a new POC, will be too burdensome. However, knowing the price differences so that you can choose where to invest time in alleviating your frustrations seems prudent.

Final Thoughts

The barrier to better security is not a lack of affordable options but a lack of up-to-date market data combined with the comfort of inertia. When you stay with a solution you dislike, you are probably not saving money. You are paying a “legacy tax” – a premium to maintain your subpar environment.

That’s not a logical action, but a cognitive bias. A result of the fear of re-evaluating past decisions, an unwillingness to revisit the competition, and a simple lack of attention to remember to request new price quotes. As a result, you are overspending on your current solutions while simultaneously missing out on better alternatives.

The takeaway is simple: If you are unhappy with your current solution, stop using excuses like “it’s too expensive” and find out the truth. Re-evaluate the competition or, at least, send an email to request a new price quote. The only thing standing between you and peace of mind with a better solution is a decision to treat pricing and technology as dynamic realities rather than being frozen in time.

If you have a question or a comment, please let us know. We’ll be happy to hear from you.