"Contracts tend to layer on impediments; thus, not only does the Boise State University-Academic Partnerships contract require substantial advance notice, it also auto-renews for successive three-year periods and includes substantial costs associated with termination. The school is required to continue paying for students actively utilizing AP courses after cancellation. In addition, if the university terminates the contract early, it is prohibited from “contract[ing] with another service company for similar services for Programs covered by this agreement before the natural termination date of this agreement (5 years after the Effective Date).” Academic Partnerships has no such constraint. The company can turn around and offer those same courses to Boise State University’s competitors who may be interested in offering similar degrees. The Boise State-AP contract thus also highlights barriers in transitioning to a new service that may keep universities in contracts, even with escalating costs. This is also a common issue with LMS contracts. Providers routinely require long standing customers to upgrade to new software (at a new rate and/or with a one-time fee) and may include substantial annual increases that universities must accept—or else risk losing service."
https://escholarship.org/uc/item/7p0114s8