The terms of the truce ultimately resulted in the end of the "War to End All Wars" 7 months later when the Treaty of Versailles was signed on June 28, 1919.
Germany's surrender to the Allies was regarded as the prudent thing to do after Kaiser Wilhelm's tyrannical monarchy was overthrown by democratic socialist forces earlier in 1918. Erich Ludendorf, a classic example of Prussian militarism, was one of the German generals who first broached the idea of starting the negotiations that eventually led to Germany's surrender.
Ludendorf saw that 1) Germany's army was terminally exhausted, demoralized and poorly equipped; 2) the United States had finally entered the war with fresh troops; 3) the fledgling government at home was in disarray; 4) the war had bankrupted the nation (as all wars eventually do – unless there is enough looting and plundering of the occupied territories); 5) that civilians at home were starving; and 6) that victory was an impossibility. The writing was on the wall; Germany had no choice but to surrender.