Getting Discounts Beyond Standard EA Pricing: Unlocking Extra Savings in Microsoft Negotiations
Why Microsoft’s “Standard Discounts” Aren’t the End of the Story
Microsoft’s Enterprise Agreement (EA) comes with volume-based discount tiers, but those “standard” levels are just a starting point.
For example, a company with a few thousand users might receive a discount of around 15% off the list price, while a large enterprise could see a discount of 30–40%. However, these built-in discounts still leave money on the table.
Many procurement teams stop negotiating once they reach Microsoft’s stated tier, not realizing there’s more flexibility that Microsoft’s reps won’t openly share.
In real deals, Microsoft often grants deeper concessions beyond the official levels – but only if you push for them. Read our ultimate guide to Microsoft EA negotiations.
If your account is seen as a “must-win” or you’re seriously entertaining a competitor, Microsoft can quietly approve special discounts outside the norm. The first quote is rarely the best. By confidently pushing past that initial “final” offer, enterprises can uncover extra savings that aren’t advertised in any price list.
Step 1 — Benchmark Your EA Against Market Data
Start by knowing where your deal stands in comparison to the market. Benchmark your EA pricing against peers. Utilize industry data or consult with experts to determine what similar organizations pay. Often, you’ll find you’re paying more per user than companies of your size should. If others are paying, say, 15% less for the same Microsoft 365 licenses, that’s a clear sign you have room to negotiate.
Armed with benchmark data, you have concrete targets. It signals to Microsoft that you are aware of the prevailing rates, pressuring them to justify or improve your pricing.
Typical volume discounts by customer size provide a gauge – maybe mid-sized enterprises see 15–20% off, while very large ones get 30% or more. If your per-seat cost is $300 but peers pay $270, you can insist Microsoft close that gap. This kind of data-driven approach makes it harder for Microsoft to stick you with an above-market deal.
Step 2 — Leverage Competitive Alternatives
Nothing gets Microsoft’s attention like the hint of a competitor waiting in the wings. Make it clear you’re evaluating alternative providers – even if a switch isn’t imminent, the possibility can unlock better pricing.
Mention that you’re considering other cloud or productivity solutions, such as AWS or Google Cloud for cloud services, or Google Workspace for email and collaboration.
These signals create leverage. Microsoft doesn’t want to lose a big account to a rival, especially if you mention you have a competitive bid in hand.
Even if you fully intend to stay with Microsoft, letting them think you have options puts pressure on them to sweeten the deal. This approach often prompts Microsoft to lower prices further or offer extras to convince you to stay.
You don’t need a formal RFP; sometimes, a simple statement like “we have a more aggressive quote from another vendor” is enough.
That line can prompt your Microsoft representative to seek special approval and return with a better offer, one that exceeds the standard playbook.
Step 3 — Use End-of-Quarter and Fiscal Year Timing
When you negotiate, it can be just as important as what you negotiate. Microsoft’s sales teams have quarterly and annual targets, and their flexibility spikes as those deadlines approach. Align your negotiations with Microsoft’s fiscal calendar whenever possible. Microsoft’s fiscal year ends June 30 (with major quarter-end pushes in late March, September, and December), so those are high-leverage moments.
If you time your EA renewal or purchase decision for these crunch periods – especially late June – you’ll likely find Microsoft more willing to concede on price. Deals that seemed capped at a certain discount can suddenly improve when a rep needs that last sale to hit quota. It’s not uncommon to squeeze out an extra few points of discount by finalizing just before a quarter or year-end deadline.
Be patient and plan: don’t sign too early if holding off until Microsoft’s “rush hour” could get you a better deal.
Let them know your timeline lines up with their quarter-end; they’ll realize they have one shot to win your signature this period, which can translate into a significantly better offer.
For cost control, Negotiating Price Caps and Protections in Microsoft EAs.
Step 4 — Bundle Products Strategically for More Concessions
Another strategy is to bundle additional Microsoft products or services into your agreement to gain more negotiating power. Microsoft loves to see customers broaden their commitments.
If you’re renewing an EA, consider adding other offerings, such as advanced security suites, Teams voice solutions, Dynamics 365 modules, or an Azure spending commitment. By expanding the scope, your contract value increases – and Microsoft may reward you with deeper discounts or additional perks.
The key is to bundle smartly without buying stuff you won’t use. Treat potential add-ons as bargaining chips. For example, you might tell Microsoft, “If we also adopt Dynamics 365 as part of this deal, we’ll need an extra 5% off our Office 365 prices to justify it.”
This shows you’re willing to give Microsoft more business, but only if the economics work out in your favor. Microsoft often has incentives to push new products, so it can afford to cut your core license pricing if you agree to expand.
Ensure that any added component is either truly necessary or that the greater discount offsets its cost. In the end, smart bundling means trading a bit more scope for a much better overall deal – without paying for things you won’t use.
Step 5 — Push for “Strategic Customer” Treatment
Microsoft will bend its rules for customers it sees as strategically important. These are accounts they can’t afford to lose or ones they want as industry showpieces.
To encourage this special treatment, position your organization as uniquely valuable to Microsoft. Emphasize your brand’s influence, industry leadership, or plans to adopt Microsoft’s newest technologies.
If you’re embarking on a cutting-edge project (say, implementing AI solutions or moving major workloads to Azure), make sure Microsoft knows. They often respond with extra discounts or investment for customers who can showcase success with their latest tech.
Engaging Microsoft’s senior leadership can also help. A direct conversation from your CIO or CFO to Microsoft’s higher-ups about a long-term partnership can elevate your status.
For example, hint that with the right deal, your company is ready to be a flagship success story for Microsoft.
When they see that better pricing could turn you into a public reference and a loyal account, they’ll grant concessions that ordinary customers don’t get.
Step 6 — Avoid Traps That Cancel Out Discounts
Chasing bigger discounts is great – but not if you give the savings back through fine print. Watch out for contract pitfalls that can undermine the value of your discounts.
For instance, a 20% discount means little if Microsoft can hike prices 10% each year of the term, or if the discount only applies to one part of your bundle but not another.
A few common traps to avoid:
- Hidden Escalators: Ensure an automatic yearly price increase won’t erode your savings. Negotiate a cap on any annual uptick.
- Selective discounts: Ensure the discount applies broadly, not just to one product. A great price on Office 365 means little if Azure or other components stay at the list price.
- Discounted shelfware: Don’t overbuy licenses just because of a discount. A 30% discount on unused software is still a waste of money.
Always run the math on your total 3-year cost to compare it with any proposed deal. If the “discounted” version doesn’t reduce your spend compared to the status quo, it’s not a real win. Call out and fix any terms that erode your savings before you sign.
Read – Customizing Microsoft EA to Fit Your Needs
FAQ
Q: What’s the typical maximum Microsoft EA discount?
A: In a well-negotiated large EA, you might get 25–35% off list prices at best. Only in rare, ultra-competitive situations do discounts approach 40%. Keep in mind that Microsoft can also offer credits or free services that enhance your effective savings.
Q: Can you get discounts above Microsoft’s standard tiers?
A: Yes. Standard tier discounts are just the baseline, and many enterprises negotiate beyond them. By using competition, timing, and bundling tactics, you give Microsoft reasons to exceed its usual limits. Microsoft can authorize extra discretionary cuts for deals it wants to win.
Q: Does Microsoft give the same discounts globally?
A: Not automatically. Microsoft’s discounts can vary by region. A great deal in one country won’t be mirrored elsewhere unless you push for it. If you’re a multinational, negotiate as one global customer – leverage your total volume to secure a uniform top-tier discount, ensuring no region is left with a weaker deal.
Q: When is the best time to push for discounts?
A: End of Microsoft’s fiscal year (around June 30) is the prime time. Sales teams are most eager then, so they’re most generous with concessions. End-of-quarter deadlines are also useful leverage. If possible, aim to finalize your deal during these peak periods to secure the biggest concessions.
Q: How do I avoid giving up scope just for discounts?
A: Decide your must-haves versus nice-to-haves upfront. Only consider the optional add-ons if the discount truly makes them worthwhile. That way, you won’t be talked into more than you need. Use those extras as bargaining chips and be ready to leave them out if the deal isn’t sweet enough.
