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Risk Analysis2024-02-18

The "Hotel California" Effect

"You can check out any time you like, but you can never leave." — The Eagles (and your SaaS Vendor)

Every SaaS vendor promises "Easy Export." They are technically telling the truth, but practically lying.

When you ask about data portability, they say: "Of course! You can export all your contracts as PDF and metadata as CSV."

What they don't tell you is that a Contract Lifecycle Management (CLM) system is not just a file storage. It is a Relational Database. And relationships are notoriously hard to export.

The Export Fidelity Gap

When you migrate out of a CLM, you lose more than you think.

What You Actually Own

The deeper the data structure, the harder it is to move.

Chart showing the loss of data fidelity during export
Figure 1: You get the files (100%), but you lose the logic (0%).

1. The Relationship Loss

In your CLM, the "Master Service Agreement" is linked to 50 "Statements of Work." This link is a database relationship. When you export to CSV, that link becomes a text string. Rebuilding those 50 links in a new system is a manual nightmare.

2. The Audit Trail Black Hole

"Who approved this clause on Feb 14th?" This information lives in the system's proprietary audit log. Most vendors allow you to export this as a messy JSON file or a PDF, but you cannot import it into another system. Your history is frozen in a read-only archive.

The Consultant's Advice: The Pre-Nup

Before you sign a 3-year contract, ask for the "Exit Strategy" in writing.

  • Q1
    "Can we export the Parent-Child relationships in a structured format?"If they say "It's in the CSV," ask them to demo it.
  • Q2
    "Is the Audit Trail exportable as structured data?"You need to know if you can query your history after you leave.

Don't let your data check into the Hotel California. Make sure it has a passport.