Embedding vs. Stickiness: Why Embedded Infrastructure Stops Generating Competitive Evaluations Entirely

Traditional SaaS measures “stickiness” through switching costs: data migration difficulty, learning curves, contract lock-in. These are friction-based. Users want to leave but can’t.

Embedding operates on a fundamentally different mechanism.

You become the coordination layer that enables other systems to communicate. Removing you doesn’t just require migration — it requires re-architecting how everything connects.

The Critical Distinction:

The Paradox:

Sticky products generate constant competitive pressure because users are actively frustrated.

Embedded infrastructure — as explored in the economics of AI compute infrastructure — often generates no competitive evaluation at all — not because users are satisfied, but because they’ve forgotten switching is conceptually possible.

This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.