Cloud ERP

Enshittification and Its Impact on ERP Systems

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At Engleman Associates, Inc. (EAI), we provide IT professionals and executives with actionable insights drawn from over 25 years and 1,000 ERP projects. In our latest educational video, “Enshittification and ERP,” Mark Engleman explores the concept of enshittification—a term describing the gradual decline in quality of online products and services—and its significant implications for cloud ERP systems.

Enshittification follows a predictable pattern: vendors initially offer high-quality solutions to attract users, then shift focus to prioritize revenue generation, and finally degrade the offering to maximize stakeholder profits, particularly when users face high barriers to switching. For ERP systems, which are costly and time-consuming to replace, this degradation poses a serious risk to buyers who rely on these mission-critical applications.

The video outlines the enshittification process and discusses potential solutions, including technical and ethical reforms by vendors, which may require collective buyer pushback and advocacy to enforce. For individual companies now, achieving greater commercial and physical control over ERP applications and data is essential for mitigating these risks.

Watch the video for a concise analysis of this critical issue:

For further insights, explore the related ERP resources linked in the video description. Visit our YouTube channel for additional content, and share your thoughts in the comments below. Subscribe to stay updated on ERP trends and strategies.

Enshittification and Its Impact on ERP Systems

The Lack of Buyer Control in Seller-Managed Cloud ERP

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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

Explore Cloud ERP and Buyer Options

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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.

Cloud ERP Whitepaper

Cloud ERP Failover Whitepaper

Is Cloud ERP Truly Easier to Implement?

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We are excited to announce our latest educational video, "Is Cloud ERP Easy to Implement?", now available. Designed for IT personnel and executives, this video tackles the common claim that Cloud ERP is inherently easier to implement than on-premise single-instance ERP.

Drawing on our extensive experience with over 1,000 ERP projects since 1996, the video examines the origins of this perception, often fueled by Cloud ERP vendors’ marketing and the broader narrative of cloud solutions being “easier” due to managed hardware and software. However, it clarifies that implementation effort hinges on factors unrelated to hosting or payment models, including:

  • Complexity of the buyer’s business processes
  • Functionality and configurability of the ERP solution
  • The buyer’s ability to effectively manage the implementation process

The video underscores that while Cloud ERP may simplify infrastructure management, true implementation success depends on these critical factors listed above, not the deployment model.

We invite you to watch this insightful video to better understand the realities of ERP implementation. Explore additional ERP resources in the video description, and stay updated by liking and subscribing to our channel for future content.

Thanks for your interest, and certainly call us with questions you may have.

Is Cloud ERP Easier to Implement?

Understanding the Risks of Cloud ERP Vendor Failure

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At Engleman Associates, Inc. (EAI) we are committed to providing IT professionals and business executives with clear, experience-based insights into enterprise resource planning (ERP) systems. In our latest educational video, “What if the Cloud ERP Vendor Fails,” Mark Engleman addresses a critical yet often overlooked risk of cloud-based ERP systems: the potential failure of the vendor. This article and video are based on expertise gained in over 25 years and 1,000 ERP projects at EAI.

Cloud ERP is frequently marketed as a seamless, service-oriented solution. However, its accessibility hinges entirely on the vendor’s operational stability. No company is immune to failure, and cloud ERP vendors are no exception. When internal mismanagement or external pressures overwhelm a vendor, the result can be sudden insolvency—often with minimal warning. This leaves users without access to a mission-critical system that can take a year or more to replace, potentially disrupting operations and supply chains on a broad scale.

In this concise video, we explore the mechanics of such failures, the absence of advance notice, and the severe implications for businesses left without a failover plan. We also highlight why relying solely on a vendor-controlled system without a robust recovery strategy is a risky proposition.

Watch the video to gain a deeper understanding of this critical issue.
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.
We welcome your feedback—please share your thoughts or questions in the comments section below.

Why Cloud ERP Without Local Failover Is a Disaster Waiting to Happen