The Lack of Buyer Control in Seller-Managed Cloud ERP

July 6, 2025May 9, 2025 by Mark Engleman

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.

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The Absurdity of ERP Vendor Terms That Silence Buyers

August 21, 2025May 9, 2025 by Mark Engleman

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.

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