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With so many companies switching to a cloud solution, it is difficult to imagine it any other way than good. However, that is far from the truth.
Cloud ERP is unquestionably great for vendors. It shortens the sales cycles, decreases contract negotiations, and above all increases software vendor profits. For vendors it results in a consistent revenue stream. Because of the perpetual nature of cloud payments, the cost of cloud solutions for customers over the long term is much higher than traditional on-premise solutions – and the profits for vendors can be exponentially higher.
For customers, the ease of implementation,…
Continue Reading Migrating To The Cloud – Don’t Believe The Hype

From modernizing business processes, accelerating workflows, and increased profitability, there are plenty of upsides to an ERP software implementation or full scale digital transformation. However, there are many things that can go wrong during and after the implementation process that can result in an implementation train wreck. In the cases we litigate on behalf of ERP customers victimized by software failures, the reason for the failure almost always lies squarely with the ERP vendor or integrator.
Failure can take a multitude of forms, from not realizing expected business benefits, blown budgets, extended timelines, and the failure of deliverables to conform…
Continue Reading Why ERP Software Implementations and Digital Transformations Fail

Oversold and misrepresented software, missed deadlines, inexperienced consultants, and budget overruns are all common occurrences in a digital transformation. The reality is that as a customer, the odds of a successful ERP implementation, or digital transformation, are stacked against you.
When clients come to us in the midst of an ERP or digital transformation train wreck, they are overwhelmed and frustrated. Many times they are convinced they have a case, and want to sue their ERP vendor. Our response is almost always the same: “have you done everything you can – within reason – to make sure that the project…
Continue Reading The Question You Need To Ask Yourself Before Filing A Lawsuit Against Your ERP Software Vendor:

While the ERP contract negotiation process is dependent on the facts of the particular transaction, all negotiations have a similar process and a similar trajectory. The cost of the software and implementation, the importance of the software being licensed, the number of vendors, and the risk presented by the technology will all impact the length and difficulty of the contract negotiation process.

  • Dollar Amount of the Deal. Smaller sized deals usually demand less of an investment in attorney time and attorney review than larger sized deals. There is also the issue of risk; smaller deals usually (though not always) present

    • …
    Continue Reading The ERP Contract Negotiation Process – How Long Does It Really Take?

    There are lots of ways a digital transformation can go wrong, even with a negotiated contract that spells out in detail what the software vendor and integrator will do, when they will do it, and what they will be paid. This is even more true during a recession. As we have repeatedly said on this blog, implementing software solely because you want the latest and greatest technology almost guarantees failure. The project has to be tied to a business case. Digital transformations that do not add value to the business simply do not make sense. Projects that add value are…
    Continue Reading Recessions Amplify The Risks To A Successful Digital Transformation

    Oracle recently made its largest acquisition ever by closing a $28 billion deal for electronic health care data company, Cerner. Cerner is a cloud-based platform targeted around Veteran Affair’s patient safety concerns. Oracle’s acquisition of Cerner is a strategic move by Oracle to expand into the healthcare industry. By acquiring a healthcare company, Oracle aims to increase its presence in the healthcare market, potentially allowing health care providers to easily access and share electronic records while giving Oracle a strong foothold into a rapidly-expanding market segment.
    Healthcare continues to be the nation’s largest employer, especially after the COVID-19 pandemic. Healthcare…
    Continue Reading Oracle Acquires Cerner – What to Expect

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    SaaS agreements are often difficult to negotiate and the terms and conditions can be counterintuitive. In this video, Taft Chicago partner Marcus Harris breaks down some of the most important issues you need to focus on when negotiating a SaaS agreement.
    Three Things You Must Focus On When Negotiating A SaaS Agreement
    Continue Reading Three Things You Must Focus On When Negotiating A SaaS Agreement

    Does an ERP vendor’s fiscal year matter in the discount you get as a customer? Absolutely. Oracle’s fiscal year ended in May, and Oracle’s salespeople are notorious for pressuring customers into signing deals with significant discounts prior to year-end under the notion that the discount will disappear after the year-end. Customers need to take into consideration the vendor’s year-end and its impact on the vendor’s willingness to provide discounts. However, only focusing on year-end discounts is misguided.
    While it is true some discounts will no longer be available, it is unlikely that the vendor will walk away or that all…
    Continue Reading Leveraging Oracle’s Fiscal Year End

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    Drafting, reviewing, and negotiating software license agreements is challenging. In this video, Taft Chicago partner Marcus Harris breaks down three issues to focus on during any review or negotiation of a software license agreement
    Three Issues to Focus on When Negotiating a Software License Agreement
    Continue Reading Three Issues to Focus On When Negotiating a Software License Agreement

    Illinois Supreme Court News

    The Illinois Supreme Court announced the adoption of a policy which will require every state courthouse in Illinois to adopt individual orders or rules regarding the use of portable electronic devices in their courthouse buildings and in their courtrooms.

    In adopting this policy, the Court recognizes that portable electronic devices such as cell phones, computers, tablets, and e-book readers are essential tools of today’s society.

    Many courthouses already possess policies which address the needs of lawyers, jurors, and other court users and staff to possess portable electronic devices in courthouses yet some bar members of the public and self-represented litigants…
    Continue Reading Illinois Supreme Court Announces New Policy on Portable Electronic Devices

    On April 1, 2021, the Supreme Court decided Facebook, Inc. v. Duguid, which narrowed the scope of the Telephone Consumer Protection Act of 1991 (TCPA). The Court unanimously ruled that Facebook did not violate the TCPA by sending unsolicited text messages to individuals without their consent, overturning the Ninth Circuit’s decision to broadly define automatic telephone dialing systems (“autodialers”) under the federal statute. The case boiled down to everyone’s favorite subject—grammar.
    To read more, visit the Taft Privacy & Data Security Insights blog post.
    Continue Reading Comma Again? The Supreme Court Provides a Grammar Lesson and Hands Down a Big Decision Impacting TCPA Compliance

    The U.S. Court of Federal Appeals (CAFC) just released its decision in another breach of software license case. Bitmanagement Software GMBH v. United States, Fed. Cir. 2020-1139 (Feb. 25, 2021). This is the second case where the court recently found for the contractor and held the Government to have overextended its use of a software license. (For a similar case at the Contract Board of Appeals, please see here).
    As factual background, the Navy was using Bitmanagement’s software through a third party reseller agreement. The Navy was having trouble tracking the seat licenses and transferring them when needed (i.e. when…
    Continue Reading Remanded for Damages: Navy Was Not Authorized To Copy Software

    In our prior articles on artificial intelligence (AI) in construction, we discussed machine learning, image recognition, sensors-on-site, building information modeling, and smart contracts. As we noted, significant legal issues will arise with the increasing implementation of these technologies. These issues can be grouped generally into: (1) risk allocation; (2) ownership and protection of the technology, as well as the data input and outputs; and (3) the applicable standard of liability.
    In this concluding article of this series, we discuss those issues briefly in our full law bulletin, available here.
    Continue Reading Artificial Intelligence in Construction: Part IV

    As we noted in our first article on artificial intelligence in construction, artificial intelligence (AI) is a broad term that generally refers to technology that uses algorithms to process data and simulate human intelligence. In our first two articles, we discussed machine learning and then image recognition and sensors-on-site. In this article, we discuss two more AI-related topics: (1) building information modeling; and (2) smart contracts.
    To read the full law bulletin authored by Cincinnati partner Joe Cleves, Jr., click here.
    Continue Reading Artificial Intelligence in Construction: Part III

    Despite COVID-19 shutdowns, re-openings, and partial re-closings in some parts of the state, Illinois manufacturers of all sizes are grappling with serious management decisions. Many halted the implementation of planned installations or upgrades to an Enterprise Resource Planning (ERP) software system or deferred part of their project when the pandemic began. Now, they are trying to decide whether to proceed or wait until their business returns to something approaching “normal” – whatever that might be once the virus recedes.

    It is a huge decision with managerial, financial, operational, and employee relations implications that ripple throughout an organization.

    For large manufacturers…
    Continue Reading What to Consider When Restarting ERP Projects During and After COVID-19