Microsoft Enterprise Agreement Negotiation

Microsoft`s mission is to transfer its customers within the traditional on-premise software company to its subscription-based cloud services. Revenue from its cloud commercial offerings is growing strongly, while traditional software sales are declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success will be measured against the success of this mission, and customers will be under increased pressure to travel to the cloud or to pay for on-prime-price solutions through increased contract and price complexity. Most customers have managed the jump to 365 and are experimenting with azure. The good news is that the window of agreement for new cloud editions with Microsoft is still open. While the provider introduces its most powerful research and development, sales and marketing resources into the cloud, some Microsoft corporate customers are still stuck in on-premise implementations. This has led the provider to take aggressive steps to migrate these customers to the cloud. The results include several price and licensing changes, an increase in formal and informal licensing audits (often disguised as asset management software commitments) and increased complexity and rigidity of the contract. As with any negotiation, you should be totally sure you have done as much background research as possible. This way, you can ask the right questions and get the right support for your critical business systems at the right time.

Below are five tips to consider when your Microsoft account manager calls you to negotiate your renewal: NPI is an IT management consulting firm that provides pricing and transaction-level benchmark analysis, licensing and service optimization advice, and manufacturer-specific trading information that enables IT purchasing teams to achieve measurable savings. For more information, see www.npifinancial.com. Enterprise agreements are an important part of your business and it`s important that you prepare sooner rather than later for your EA renewal so you don`t stick to an overpriced agreement that isn`t worth it. The Microsoft Enterprise deal has always been a potential hot spot for over-spending – and this is more true today than ever before. The volume of subscription and licensing opportunities for Microsoft`s offerings is overwhelming. EA`s renewals and initial negotiations have never been more complex. And a volatile business climate has increased new tax pressures for both customers and Microsoft. A complete (and organized) understanding of your company`s position privileges, as well as the actual utilization rate, is an important set of data that can be found when discussing the value actually received in relation to the fees paid with Microsoft. Ideally, you`d want to be able to communicate the value of the dollar associated with underutilization to show the lost value.

As obvious as it may seem, far too many companies are failing to effectively capture this detail and lose the chance to leverage significant bargaining leverage with Microsoft. To be able to remind Microsoft of the high sales requirements you made when using the Microsoft 365 Cloud Bundles (formerly Enterprise Cloud Cloud Suite or Secure Productive Enterprise) during your last expansion, and then to Microsoft, you never used all the features of the Office 365 component of the package or any of the other important components EM-S. , is a very strong message during your trial. This is especially the case when Microsoft tries to add new products to your portfolio or refer you to the next plan (p.B. Office 365 or Microsoft 365 E5), while significantly increasing the fees for products you have already accepted.