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

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