CS

Critical External Dependency

A dependency whose outage or change of terms threatens how the company runs

Cloud, SaaS, APIs, libraries, and specific vendors — an external dependency becomes critical the moment its outage, price rise, or end of support would seriously threaten how the company runs. What separates an ordinary dependency from a critical one is whether a real alternative exists, not just a theoretical one. It ties into vendor lock and business continuity .

Critical External Dependency: When a Vendor Becomes a Risk

Every company today depends on external technologies and vendors. We use cloud, SaaS services, payment gateways, accounting systems, hosting, or external developers. That is not a problem in itself. The problem starts the moment we cannot function without one particular vendor. That is called a critical external dependency. When does it become a problem? Picture an e-shop that has been running on a single platform for several years. It holds the website, the products, the orders, the stock, and the link to accounting.