Introduction – Negotiating Beyond Price
Negotiating with Microsoft isn’t just about squeezing out a better license discount. Savvy buyers know to push beyond the price per unit and look for extra value-adds that Microsoft can include in a deal.
These additional perks come in the form of credits, training, consulting, and support services – essentially “deal sweeteners” that enhance your contract.
By securing these Microsoft negotiation incentives, you reduce your overall spend and drive user adoption without inflating your license counts.
In other words, the right freebies can save you money and help you get more out of the Microsoft products you’re already paying for. Read our Microsoft Pricing Negotiation Strategy.
In this guide, we’ll explore the key incentives you should consider when negotiating your Microsoft Enterprise Agreement (EA) or renewal. We’ll cover Azure credits, training vouchers, support upgrades, licensing flexibility perks, and how to ask for these incentives.
We’ll also highlight common pitfalls to avoid, answer frequently asked questions, and provide a quick checklist of expert tips.
By the end, you’ll be equipped to look beyond price and negotiate a total value package in your Microsoft contracts.
Azure Credits
One of the most impactful freebies you can negotiate is Azure credits.
These are essentially free cloud dollars Microsoft gives you to offset your Azure usage. Sometimes called “pre-consumption funds,” Azure credits directly reduce your cloud bill.
For example, Microsoft might provide a one-time lump sum credit (e.g. $100,000 of Azure consumption) when you sign a new deal, or offer yearly credits that kick in at each anniversary of your EA.
The structure can vary – you might negotiate a one-time credit at signing or annual consumption funds that refresh each year of your agreement.
Why does Microsoft hand out Azure credits? In part, to encourage cloud adoption. If you’re planning a move to Azure or expanding cloud projects, position these credits as essential seed funding for your pilot projects or migrations.
You can say, “We’re interested in Azure, but we need support to get started – can you include $X in Azure credits to fund our initial migration?” Microsoft often has internal targets for Azure consumption, so they’re motivated to offer credits as a sweetener.
For you as the customer, Azure credits are extremely valuable because they offset real spending you would otherwise budget for. Always get the specifics in writing (total credit amount, where it can be applied, and expiration) to ensure you fully benefit from the offer.
Training and Consulting Vouchers
Another high-value incentive area is training, workshops, and consulting services. Microsoft previously offered Software Assurance Training Vouchers (SATVs) under enterprise agreements, but this program has since been retired.
In its place, Microsoft now provides ad-hoc training days, workshops, and funded consulting engagements as negotiated perks. These can be just as valuable – they effectively give you free expertise and education, reducing the need to pay third-party consultants or trainers.
Don’t be shy about asking for Microsoft free credits and training opportunities as part of your deal. For example, you could request a certain number of free training class seats for your IT staff, on-site workshops to help deploy a new product, or vouchers that cover partner consulting fees for a project.
Microsoft often has programs (or funds) to help customers adopt new technologies, but they usually won’t volunteer them upfront. Ask for formal commitments in writing: “We’d like 10 free user training sessions for Teams and a funded deployment workshop for Azure as part of this agreement.”
By negotiating these upfront, you ensure the support doesn’t disappear later. Free training and consulting credits can easily save you tens of thousands of dollars, accelerate your team’s ramp-up on new tools, and drive better outcomes from the software you’re licensing.
Support Upgrades
Support costs are an often-overlooked piece of the Microsoft deal. If your organization uses Microsoft’s Unified Support (the comprehensive support program that replaced Premier Support), you know it can be a significant line item.
The good news is that support perks can be negotiated into your agreement as well. Microsoft sales teams sometimes offer free support hours, a certain number of support tickets at no charge, or even an upgrade to a higher support tier for the duration of your contract.
Why would Microsoft throw in support? Especially at renewal time, they want to keep you happy and mitigate any pain points. If you’ve expressed concerns about the cost of Unified Support, for instance, ask if they can include some support credit or an enhanced support plan as part of the deal.
Even modest concessions here can reduce your risk (by ensuring critical issues get quicker attention) and lower your hidden costs. For example, getting a higher support level for free could save you from spending extra on an incident that would have otherwise exceeded your basic support.
The key is to raise the topic: “Our support costs are high – can Microsoft provide any support hours or a temporary support upgrade if we renew?” Just like other incentives, document the details (e.g. “100 hours of Microsoft Unified Support included per year at no charge”) in your contract.
Licensing Flexibility Perks
Not all valuable concessions come in the form of cash credits or services – some are licensing flexibility perks that indirectly save you money.
These are special terms you can negotiate to avoid overlap or additional charges during transitions. Key examples include:
- Extended dual-use rights: This means Microsoft lets you use two versions or environments concurrently (for example, your legacy on-premises software and the new cloud service replacing it) for a period of time. Dual-use rights prevent you from double-paying during a migration. If you’re moving users from legacy systems to Microsoft 365 or Azure, ask for a grace period where both the old and new licenses are valid. That wa,y you’re not forced to drop one before fully ramping up the other. It’s not a marketed “discount,” but it avoids overlap costs that can be substantial.
- Delayed start dates: You might negotiate a delayed start for certain subscriptions or services. For instance, you sign the EA now to lock in pricing, but the billing for a new product doesn’t begin until a later date when you actually roll it out. This perk essentially gives you a few months of free usage or a payment holiday. It’s useful if budget timing is a concern or if a project won’t start immediately. Microsoft may agree to align the billing with your project schedule so you’re not paying for idle time.
- Grandfathering old pricing: Microsoft frequently raises prices on products over time. A smart concession to request is price protection or grandfathering of the current rates. This means that even though list prices are going up next year, your renewal will keep the old price for the term of your agreement. By avoiding those upgrades, you indirectly save money without it being reflected as a “discount” on paper. It’s essentially locking in a better deal long-term. Be sure to negotiate this during the contract drafting stage – once new prices take effect, it’s hard to roll them back.
These flexibility perks often fly under the radar because Microsoft doesn’t advertise them; they offer them on a case-by-case basis when customers ask. Each one can eliminate wasteful spending, so include them in your negotiation checklist. They cost Microsoft little to grant, but can save your organization a lot.
How to Ask for Incentives
Knowing what to ask for is half the battle – the other half is how you ask. Microsoft account reps are trained negotiators, and they won’t always offer freebies outright. You need to prompt them by requesting these incentives, especially when you sense that pure discounting has reached its limit.
One effective approach is to frame it like this: “If you can’t move further on the discount, can you add some extras to make the deal work for us? Perhaps $XX in Azure credits or funding for training and deployment assistance.” In other words, when the seller says “we have no more room on price,” shift the discussion to free value-adds.
This tactic works because Microsoft’s sales teams often have different pots of money and internal goals that align with these incentives. For example, they may offer quota relief for Azure consumption or special funding programs to encourage the adoption of new products. Giving you credits or services can be easier for them to approve than a deeper direct discount, since it doesn’t erode the license revenue as visibly.
The key is to explicitly ask. Make a list of the incentives that matter to you (cloud credits, training days, support help, flexibility terms, etc.) and bring it to the negotiation table. Ask early and make it clear that these items are important for you to close the deal.
Below is a quick reference table of common Microsoft deal incentives and tips on when to request each:
| Incentive | Value to Buyer | When to Request |
|---|---|---|
| Azure credits | Offset cloud spend (free Azure $) | At EA signing or when committing to Azure |
| Training vouchers | Reduce consulting/training costs | During new product adoption or deployment |
| Support hours | Lower Unified Support expenses | At EA renewal or aligning a support contract |
| Dual-use rights | Avoid overlap costs during migrations | During migration planning negotiations |
| Price grandfathering | Prevent sudden renewal price hikes | At contract drafting/renewal stage |
Use this table as a guide. For instance, if you’re signing a first-time Azure agreement, ask for credits at signing. If you’re rolling out a new software (like Dynamics 365 or Power Platform), ask for training vouchers or partner services to help your team learn it.
Always tie the ask to a business need (“we need X to ensure successful adoption of Y”) – this justifies the Microsoft rep to secure the incentive for you.
Common Pitfalls
While leveraging Microsoft deal sweeteners can save a bundle, there are a few pitfalls to avoid.
Keep these common mistakes in mind so you don’t lose out on the value you negotiated:
- Accepting vague promises: Don’t settle for verbal assurances like “We’ll take care of you on support” or “We’ll have resources to help out.” If an incentive isn’t written into the contract, it might as well not exist. Always get the specifics of any credit, free service, or special term in writing. Otherwise, those friendly promises can evaporate later.
- Forgetting to pivot when price stalls: If your price negotiations hit a wall, don’t leave the table empty-handed. Often, buyers end the discussion once Microsoft says, “That’s the best we can do on price.” Instead, use that moment to ask, “What else can we add to improve the value?” Request the incentives we’ve discussed – credits, training, support, etc. You might find Microsoft is willing to toss in extras once the discount can’t go any lower. But you won’t get them if you don’t ask.
- Assuming incentives are automatic: Many customers think that if Microsoft really wanted adoption, they’d throw in credits or services for free. In reality, Microsoft rarely includes freebies unless you explicitly press for them. Incentives like Azure funds or workshop days are usually available, but they stay on the shelf unless you inquire. Don’t assume your EA renewal will come with bonus goodies by default – make it a point in your negotiation agenda to ask, “What incentives can you offer to sweeten this deal for us?”
Avoiding these pitfalls ensures you actually capture the value of incentives and don’t miss out due to oversight. Be proactive, get everything in writing, and treat the negotiation of incentives as seriously as the base price discussion.
FAQs
Can incentives be negotiated mid-term? – Yes, sometimes. If you’re midway through your agreement and plan to add new workloads or products, Microsoft may offer incentives even outside the usual renewal cycle. For example, adding a new Azure service mid-term could come with some credits or a discount, especially if it helps Microsoft win that additional usage from you. It’s not guaranteed, but it doesn’t hurt to ask your rep if new projects can be supported with some Microsoft contract-freebies.
Do smaller enterprises get these incentives? – Yes, though often scaled down. Microsoft negotiation incentives aren’t just for the Fortune 500. Smaller organizations can still ask for things like a bit of Azure credit, a few free training sessions, or a minor support upgrade. The scale of the incentive will correlate with your spend – you won’t get $1M in Azure credits on a $100k deal – but even a 100-person company might get, say, a $5k credit or a day of free consulting. The key is to ask, regardless of size.
What’s the most valuable incentive to request? – It depends on your needs, but Azure credits are among the most universally valuable if you have any cloud footprint or plans. They directly offset costs you’d otherwise pay in cash. If you’re not using Azure at all, then training or support incentives might be the most impactful. Think of it this way: the best incentive is the one you would have spent money on anyway. For many, that’s cloud spend – hence Azure credits often provide the biggest bang for the buck.
Are these incentives renewable at each contract renewal? – Not automatically. Incentives are usually one-time or for a fixed term, so you must renegotiate them in each renewal. Microsoft often provides incentives to secure a renewal, but if you simply renew without asking, those prior credits or freebies may disappear in the new agreement. Treat each renewal as a fresh negotiation for incentives. If an incentive was valuable to you, bring it up again and get it extended. Never assume Microsoft will carry forward a concession out of goodwill – everything is on the table each time you negotiate.
Read about how Microsoft used to discount per company size, Microsoft Volume Discounts Demystified: How to Maximize Price Levels.
Five Expert Recommendations (Checklist)
To wrap up, here’s a quick checklist of expert tips when pursuing Microsoft deal sweeteners and incentives:
- Never stop at price. After negotiating the best price you can, always ask for additional credits or services. If Microsoft says the discount can’t improve, pivot to freebies like Azure credits, training, or support. Don’t leave value on the table.
- Document every incentive. Verbal promises are not enough – make sure every credit, voucher, or special term is written into the contract or a formal email addendum. This holds Microsoft accountable to deliver those extras during the agreement term.
- Use incentives to cover hidden costs. Think about where you’ll spend money beyond licenses – cloud usage, user training, deployment, support – and target incentives there. For example, Azure credits can fund migrations, and training vouchers can replace paid workshops. These extras help cover expenses that might otherwise bust your budget.
- Bundle incentives with renewals or new adoptions. The best time to get freebies is when you’re renewing or adopting something new. Microsoft is more generous if you’re committing to a new product or extending your contract. Bundle your incentive requests as part of that bigger discussion (“We’ll adopt Product X if you include Y support hours and Z training days”).
- Treat freebies as real savings. Internalize that a dollar saved in Azure credits or a free service is just as good as a dollar off your bill. These incentives reduce your out-of-pocket spending without requiring you to buy more licenses. They ease budget pressure and often drive more value from the software, making them a win-win. Always calculate the rough dollar value of any incentive and factor it into your negotiation success.
By following these recommendations, you’ll ensure that your Microsoft negotiations focus on total value and that you walk away with not just a great price, but a great deal overall. Happy negotiating!
Read more about our Microsoft Negotiation Services.
