Cloud ERP Partner or Predator? Analyst Brian Sommer Explains the Difference
Industry analyst Brian Sommer's whitepaper warns against ERP vendors that act as predators rather than partners. Eight signs to watch for, and why it matters.
Adapted from a piece by Jon Roskill, CEO, Acumatica.
Analyst Brian Sommer’s whitepaper warns against choosing a cloud ERP partner exhibiting predatory behaviors. In conversation with Acumatica’s CEO, he explains why businesses must distinguish between trustworthy vendors and those acting against customer interests.
Predator vs. partner
Brian Sommer, founder of Vital Analysis and TechVentive, Inc., has spent decades advising top executives on technology selection. He’s witnessed unscrupulous practices many cloud ERP vendors employ, including what he calls wallet fracking — applying pressure to customer finances to extract revenue.
Rather than serving as genuine partners, these vendors exploit their own customers. According to Sommer’s whitepaper, this behavior stems from technology firms lacking customer-friendly cultures. Poor vendor relationships can prove expensive and frustrating long-term.
Sommer identifies eight defining factors of predatory vendors. Four key characteristics:
- Cannot exist without exploiting customers
- Operate with short-term focus
- Seek permanent relationships with customer budgets
- Use confusing language and ambiguous contract terms
Additional predatory traits include frequent pricing changes, aggressive usage audits, and voluminous contracts spanning dozens or hundreds of pages.
Predatory behavior is often institutionalized within a vendor — manifesting in organizational structure, processes, and the software itself.
Pandemic relevance
The COVID-19 crisis underscores vendor selection importance. Businesses requiring flexible, connected systems need reliable partners. Companies facing reduced operations discovered predatory vendors refused price relief — with contracts written so that they only scale one way, and that’s up.
True cloud ERP partners actively engage customers, identifying pain points and offering creative solutions: deferred payments, flexible contracts, genuine support.
Acumatica’s partnership approach
Acumatica established the Customer Bill of Rights, demonstrating commitment to customer-first practices and transparent vendor behavior. The company receives consistently positive reviews across the industry.
Closing perspective
When evaluating ERP vendors, examine their Wall Street interactions. Vendors prioritizing shareholder value over customer relationships won’t provide genuine partnerships. Cultural assessment remains essential to distinguishing reliable partners from exploitative predators.