The Lack of Buyer Control in Seller-Managed Cloud ERP

At Engleman Associates, Inc. (EAI), we draw on over 25 years and 1,000 ERP projects to deliver precise, buyer-focused insights for IT professionals and executives. In our latest educational video, “Buyer’s Commercial Control Near Zero - With Cloud ERP,” Mark Engleman addresses a critical issue with seller-managed cloud ERP systems: the near-total lack of commercial and physical application control for buyers.

Seller-managed cloud ERP, where vendors handle all aspects of delivery, leaves buyers vulnerable due to four key realities:

One-sided contracts: Modern cloud ERP agreements heavily favor vendors, often including provisions for unilateral changes post-subscription term.

No physical control: Unlike traditional on-premises ERP, where buyers owned licenses and hosted systems, cloud ERP buyers have little to no control over the physical infrastructure that delivers the ERP.

High switching costs: Replacing an ERP system, cloud or otherwise, is a complex process that can take a year or more, discouraging changes.

Rising costs: With limited buyer leverage, vendors face little resistance to increasing subscription fees.

This combination of poor commercial terms and lack of physical control places buyers of mission-critical ERP systems in a precarious position. In the video, Mark outlines these challenges and offers guidance on how buyers can push back.

Watch the video for a detailed discussion.

For strategies to address these issues, explore the resources linked in the video description. Visit our YouTube channel for more ERP insights, and share your feedback in the comments below. Subscribe to stay informed.

No Control Over Cloud ERP Systems

The Absurdity of ERP Vendor Terms That Silence Buyers

At Engleman Associates, Inc. (EAI), we leverage over 25 years and 1,000 ERP projects to provide IT professionals and executives with candid, buyer-focused insights into enterprise resource planning (ERP) systems. In our latest educational video, “Complaining About the ERP Vendor Is Not Allowed,” Mark Engleman examines a troubling trend in ERP vendor contracts: commercial terms that prohibit buyers from making disparaging comments about the vendor.

In recent years, ERP vendor agreements have increasingly imposed restrictive terms that shift risk onto buyers. One particularly absurd example is a clause that seeks to prevent buyers from publicly criticizing the vendor, effectively stifling legitimate feedback. Such terms, often vaguely worded with phrases like “not limited to,” could potentially restrict any negative commentary, public or private. While these clauses may appear mutual, they disproportionately favor the vendor, as buyers—whose operations depend heavily on the ERP system—have far more reasons to voice concerns.

In the video, Mark shares a real-world case where a client successfully challenged and removed this clause, highlighting its lack of rational basis. This example underscores a broader issue: the erosion of buyer control in ERP agreements and the audacity of vendors attempting to suppress valid pushback, whether in user groups, legal actions, or other forums.

Watch the video to learn more about this concerning trend.

For additional insights, explore our related content and video library. We invite you to share your thoughts in the comments below and subscribe for more ERP-focused discussions.

ERP Vendors’ Non-Disparage Terms

Explore Cloud ERP and Buyer Options

We’re excited to announce a new educational video now available for IT personnel and executives navigating ERP decisions.

Cloud ERP . . . What Is It Really? What Are Buyer’s Options?

Presented by industry expert Mark Engleman, this concise video leverages insights from over 1,000 ERP projects since 1996 to clarify the concept of Cloud ERP and outline the diverse access options available to buyers.

The video defines Cloud ERP as ERP accessed via a browser, typically freeing buyers from managing application infrastructure, servers, or technical details. While this turnkey model appears straightforward, the video emphasizes critical details that empower buyers to control access and manage costs effectively over time. It presents a framework for evaluating options, including:

  • Management responsibility (vendor, managed service provider, or buyer).
  • Physical location of the ERP (data center determined by buyer or buyer’s site).
  • Cost structures (subscription or perpetual license) and pricing terms.
  • Commercial terms to avoid restrictive vendor-driven agreements.

These considerations enable buyers to tailor Cloud ERP deployments to their needs while gaining proper physical and financial controls.
Videos on this topic:

For a more detailed analysis, download our white paper on this topic. Stay informed by subscribing to our YouTube channel and exploring our library of ERP-focused videos [link to channel].
We welcome your feedback—please share your thoughts or questions in the comments section below.

Cloud ERP
Cloud ERP

Summary video
on Cloud ERP.

Comprehensive video
on Cloud ERP.

Why ERP License Contracts Are Not True Contracts

We are pleased to announce our latest educational video, “Contracts to Access ERP - Are Not Really Contracts”, now available on our YouTube channel and embedded below for your convenience. Designed for IT personnel and executives, this concise video examines why typical ERP license contracts from vendors are so fundamentally flawed that they fail to qualify as legitimate contracts.

Drawing on our experience with over 1,000 ERP projects since 1996, the video explains how ERP contracts often undermine buyer protections through vague language, unilateral seller rights to modify terms, and references to external documents with unclear precedence. These elements, combined with explicit constraints on buyers and broad seller privileges, prioritize vendor control and cost escalation over mutual agreement, particularly given the high costs and risks of changing ERP systems. The video also highlights how this industry trend has worsened over the past 15 years.

Watch the embedded video to gain critical insights into the deficiencies of standard ERP contracts and their implications for buyers. For guidance on securing appropriate commercial terms and costs, explore the related resources linked in the video description. Be sure to like and subscribe to our YouTube channel for ongoing ERP expertise. Thanks for your interest, and certainly call us with questions you may have.

Why ERP Software Contracts Are Nearly Useless for Buyers

Why RFPs Are Unsuitable for ERP Selection

We are happy to announce our latest educational video, “The Unsuitability of an RFP”, now available on our YouTube channel and embedded below for your convenience. Tailored for IT personnel and executives, this concise video explains why the classic Request for Proposal (RFP) process is ill-suited for evaluating and selecting ERP business applications.

Based on our extensive experience with over 1,000 ERP projects since 1996, the video highlights the mismatch between the RFP’s structured approach and the complex, nuanced nature of ERP decision-making. It explores four critical areas—functionality, cost, commercial terms, and implementation services—where RFPs fall short due to vague requirements, opaque pricing models, and the need for direct, strategic engagement with vendors. The video emphasizes that achieving optimal ERP selection, cost control, and durable terms requires hands-on, targeted interactions with sellers, which an RFP cannot practically facilitate.

Watch the embedded video to gain valuable insights into avoiding common ERP selection pitfalls. For additional resources, check the links in the video description and explore our full collection of ERP-focused content. Please like and subscribe to our YouTube channel for ongoing expert guidance.

RFP Approach Fails for ERP Selection