Trade War Tariffs: A Fresh Look at Enterprise Software Strategy

As U.S.-China tariffs escalate, savvy businesses are discovering that challenging vendor-dictated upgrade cycles offers both financial resilience and strategic advantage in uncertain times.  

By Tomás O’Leary, CEO and Founder, Origina   

The U.S.-China trade relationship has deteriorated rapidly, with Donald Trump’s trade tariffs shocking global financial markets and supply chains. Untangling globalization – once championed by the United States – will be complex and messy. Beyond the headlines, this represents a genuine challenge for businesses trying to maintain stability in uncertain times.  

I spoke with my sister last week about her retail business in Dublin. Despite catering to an affluent clientele with healthy disposable income, she’s experiencing her worst trading period in years. “People just aren’t spending,” she told me. Other local business leaders I’ve talked with have shared similar concerns – discretionary spending has fallen off a cliff.  

I am not an economist, but could this be the canary in the coal mine? These small signals often precede broader economic shifts. Major corporations are already postponing significant investment decisions, creating a hesitancy that ripples through supply chains. Yet within this uncertainty lies a practical opportunity to rethink enterprise software management.  

The upgrade treadmill reality  

Enterprise software vendors have long operated with remarkable confidence in their position. VMware’s recent announcement that it will end support for ESX version 7 this October typifies this approach: customers face migration regardless of business circumstances or readiness.  

These enforced upgrade cycles follow a familiar pattern. Vendors announce end-of-support dates, often with limited notice. IT teams scramble to secure budget and resources. Projects with genuine business value get delayed. And the promised benefits rarely justify the disruption.  

Finance directors know the numbers all too well. Most organizations spend 70%-90% of their IT budgets simply maintaining existing systems. Every euro, pound, or dollar diverted to unnecessary upgrades is not available for initiatives that genuinely transform the business.  

Three ways trade tensions can spark smarter software decisions  

The current economic climate offers three concrete opportunities to adopt a more strategic approach: 

1. Use financial pressure to build software resilience. When tariffs potentially increase technology costs by 25% or more, extending the life of functioning software becomes a practical necessity rather than merely a cost-saving measure.
2. Cut vendor dependency and your risk exposure.  Trade tensions introduce genuine supply chain vulnerabilities, particularly when your operations depend entirely on single-vendor software roadmaps. Independent software support provides operational continuity while significantly reducing costs. More importantly, it creates flexibility exactly when you need it most: when economic uncertainty makes reliance on a single vendor particularly risky.
3. Sustainability as a strategy.  Environmental considerations align naturally with financial prudence during economic uncertainty. Unnecessary upgrades create substantial electronic waste while consuming significant energy and resources.  

The EU’s Copernicus Climate Change Service reported that 2024 was the warmest year on record globally, the first calendar year exceeding 1.5°C above pre-industrial levels. Every unnecessary software upgrade contributes to this environmental challenge through manufacturing emissions and e-waste.  

Real-world success stories  

Several organizations have demonstrated the value of challenging vendor-dictated timelines.  

The Hangzhou-based team behind DeepSeek, which exploded into the market in January, built an AI model matching the capabilities of industry giants at just 6% of the conventional cost – $6 million rather than $100 million. The company recognized that innovative thinking could outperform bloated budgets and conventional approaches.  

Elsewhere, Tesla vertically integrated battery production, slashing costs by 30%. Ryanair developed its own pricing platform, fundamentally altering air travel economics. And Nike created a proprietary digital ecosystem, boosting direct-to-consumer sales by 30%.  

In each example, leaders recognized that independence from traditional vendor constraints creates opportunities for genuine innovation and competitive advantage.  

Taking practical action  

Rather than allowing trade tensions to simply increase costs, consider these steps:  

1. Review your software portfolio with fresh eyes, identifying systems where upgrades can be safely deferred.  
2. Calculate the true cost of each planned migration, including staff time, training, customization work, and operational disruption.  
3. Give yourself options by exploring independent support to maintain system stability while reducing annual change costs.  
4. Create a reinvestment plan directing savings toward initiatives with measurable business returns.  
5. Develop practical negotiation strategies for future vendor discussions, focusing on business value rather than technical roadmaps.  
6. Avoid vendor lock-in when building your new technology future.   

A pragmatic opportunity  

During economic uncertainty, the natural response is caution. Yet organizations that make thoughtful adjustments often emerge stronger.  

The current trade tensions provide a practical moment to question long-established patterns in enterprise software management. Software vendors won’t modify their approaches to accommodate these challenges. Their business models depend on regular upgrades regardless of customer circumstances.  

For practical business leaders, this represents a genuine opportunity to gain control of technology spending and focus on initiatives that deliver tangible value. The question isn’t whether you can afford to rethink your software strategy – it’s whether you can afford not to. 

Tomás O’Leary is the Founder and CEO of Origina, a global leader in independent software maintenance. Since 2012, he has redefined the industry, helping enterprises break free from vendor lock-in and maximize their software investments. 

A recognized thought leader, Tomás co-founded Free ICT Europe and Free ICT USA, advocating for fair competition and IT user rights in the secondary ICT market. 

Committed to sustainability, he extends Origina’s mission by supporting initiatives like This Spaceship Earth and the iMasons’ Climate Accord, advancing environmental responsibility in digital infrastructure. Tomás continues to lead with innovation, advocacy, and vision. 

Extend IT asset life without vendor lock-in. Contact Origina today.