How Do I Negotiate My Microsoft Enterprise Agreement Renewal?
What is a Microsoft Enterprise Agreement (EA)? How much does an Enterprise Agreement cost? And how do I negotiate my Microsoft EA renewal? Read on to learn more. This article will provide a basic overview of what a Microsoft EA is and how it benefits your business. Here are a few tips for negotiating a new Microsoft EA:
What is a Microsoft Enterprise Agreement
What is a Microsoft Enterprise Agreement (EA)? An EA is a multi-year contract designed to cover the cost of software licensing for organizations with more than 500 users. Microsoft EAs include Enterprise Subscription programs and the option to purchase individual licenses. They are an excellent choice for organizations looking to simplify their budgeting and administration processes while reducing overall software costs. In addition, an EA allows companies to adjust their licenses between cloud and traditional platforms as needed.
If your company needs to renew its Microsoft Enterprise Agreement (EA), you may need to negotiate an early renewal. Microsoft’s fiscal year ends on June 30th, which can give you better negotiating power when negotiating renewal terms. Using data from your users’ usage and licensing activity, you can show the Microsoft account manager how much you value your subscription. It’s important to make a proactive decision about Microsoft subscription renewals early in the process so you can make informed decisions.
What’s more, unlike EAs, CSPs don’t require an annual commitment, so you’re free to opt for a plan that best fits your needs. CSPs also allow you to add and drop users as needed. However, a CSP is not as flexible as an EA, and it’s likely to cost more than an EA. However, it’s a good choice for organizations that don’t have a large number of users.
How much does an Microsoft EA cost
If you’re wondering how much does a Microsoft Enterprise Agreement cost, you’re not alone. Many companies are wondering the same thing. While the CSP license is fine for small businesses, large companies often find themselves weighing several options before committing to one. An Enterprise Agreement (EA) is the best option for enterprises with over 500 seats. It’s important to note, however, that EA pricing is different from that of CSP.
The pricing of an EA is tied to the number of computers licensed. A three-year contract typically includes subscription options, which lower the initial licensing cost. Additionally, customers can increase or decrease their subscription count at anytime. For this reason, EAs are great for organizations that want to buy more software than they need. However, be careful when choosing a Microsoft EA, since not every organization is the same.
Managing your Microsoft licenses can be a complex process. Microsoft likely knows their licensing better than you do, but you’re not always sure exactly how much you need. If you’re unsure, start by consulting with a Microsoft CSP. This partnership can help you maximize the value of your licenses and prevent you from wasting money. A Microsoft CSP also helps you avoid wasting money on licenses that you don’t need.
How to renew my Microsoft Enterprise agreement
If you’re wondering how to renew your Microsoft Enterprise agreement, you’re not alone. It can be a daunting task, but a little knowledge can help you get the best deal possible. Microsoft follows a proven methodology to increase spend, and account managers can take advantage of that by preparing their teams for the renewal process well ahead of time. Listed below are some tips to help your organization renew your Microsoft Enterprise agreement.
The first thing to know is how long your contract is for. Microsoft typically offers a three-year term. If you need more than three years, you may want to extend it for another three years. This way, you’ll have more negotiating power. Make sure you find SaaS applications that overlap with Microsoft products. If you find that you need more functionality than what is currently offered, you can request an extension.
Renewing your Microsoft Enterprise agreement is important for your organization. It’s one of the largest IT expenditures, and yet many organizations struggle to get the most out of this major investment. However, Atonement’s Microsoft licensing experts have some sage advice for organizations looking to maximize the value of their Microsoft Enterprise Agreement renewal.
Microsoft enterprise agreement negotiations
Successful Microsoft enterprise agreement negotiations require careful planning and a keen eye for pricing. Many customers have gained leverage by delaying their renewals until the end of their EA term. However, Microsoft is willing to negotiate on price protection and usage elasticity when the economy is in a state of volatility. By using these strategies, you can increase your Microsoft spend at renewal. Here are some tips to improve your chances of negotiating a better price:
Identify the company’s needs and goals and make sure your business is well-represented. A firm with a strong reputation in the software industry can help your organization get the best deal for its IT needs. The first step is to understand your competition. Understand the products you need and their features and benefits. Then, determine whether you can get better pricing through negotiation. This can help you get a better deal from Microsoft. It’s also worth investing in research so you can compare prices across different vendors.
Understand the terms of the Microsoft enterprise agreement. Microsoft is willing to negotiate more leniently outside of peak sourcing periods. For example, Atonement clients typically renew 40 percent of their Microsoft EAs during the fourth quarter, while FY Q1 typically accounts for 20 percent. While this may seem like a large difference, this situation can impact the overall value of Microsoft contracts. Subscription-based licensing helps smooth out lumpy demand. It also allows companies to pay less for the same software, resulting in better cash flow and forecasting risk.
Why you should get help in a Microsoft EA renewal
Getting help in a Microsoft Enterprise Agreement renewal can help you optimize your licenses. Microsoft EA negotiation used to be most advantageous at the end of the quarter or fiscal year. However, Microsoft has recently tried to tighten its belt to avoid spillover and has increased its flexibility in other periods of the year. Therefore, if you need help in negotiating your EA, you should consider hiring a Microsoft licensing expert provider or an internal resource.
Microsoft Enterprise Agreements help organisations respond to the ever-changing technology landscape. They simplify software licensing, offer volume discounts and additional support benefits. However, the annual price increase is a cause for concern for many customers. If you fail to get help in a Microsoft Enterprise Agreement renewal, it can lead to financial waste and license non-compliance. This is why you should get help early in the process.
An expert built ACM plan can determine which licenses are most important to your organization and which ones you can do without. This will help you nix unnecessary licenses and increase user productivity. A Microsoft licensing expert can help you make the right decision about which licenses are essential for your organization. There are many Microsoft licensing experts who can help you in this process. You can trust their advice to make the best decision.
Common mistakes in Microsoft EA renewals
There are several mistakes to avoid when planning your EA. First of all, negotiating for the renewal of an Enterprise Agreement with Microsoft is not a one-time event. Unlike most other companies, Microsoft treats EA renewals as a cyclical process with a fixed T-minus 36 period between the renewal and next year’s renewal. This means that your team’s effort needs to match the intensity of Microsoft’s account management process.
Another common mistake is not calculating the true-up cost of the product that will be added to the EA during the renewal period. This lump-sum payment assumes that you will be using the product in the middle of the year. Depending on your company’s usage, you might be surprised to find that you’re paying for two years’ worth of functionality. Therefore, if you expect to implement desktop virtualization in the near future, you may want to consider extending your EA.
Another mistake in Microsoft EA renewal negotiations is not performing price benchmark analysis. While the “best-offer” discounts from Microsoft are often better than the market price, these are not necessarily best-in-class and could cause you to overspend exponentially. Instead, you should perform price benchmark analysis of all aspects of your Microsoft estate. You should compare prices of similar programs and terms to find the best deal. When it comes to the renewal, you should not only focus on the terms but also on the programs you use.
Microsoft Enterprise Agreement Benefits
The Enterprise Agreement helps you reduce the cost of IT computing and get the most out ofyour software investments through benefits, including:
- The right tools and resources that can help your IT staff and employees be more
- Upgrade rights to the latest technology through Software Assurance.
- The ability to standardize your IT choices across the enterprise, so you can tap into the
latest technology at a substantial savings.
- Spread payments during a three-year term helps to streamline your budgeting process, giving you the flexibility you need to improve your bottom line. You can also license additional software product licensing as needed at the original order price covered under your agreement terms.
- Software Assurance benefits that offer a broad range of tools, services, and solutions to help you get the most out of your software investments.
Reduce the time spent managing your software licenses. With the Enterprise Agreement, you can do the following:
- Eliminate the need to count individual licenses; you just count the number of desktop
PCs, making it easier to manage and track licenses.
- Streamline the procurement process; you only need to place one order annually.
- Make administration and budgeting processes easier by centrally tracking purchases
and managing licenses with online management tools.
- Centralize your purchasing so that you can share software products and extended
benefits with qualified affiliates.
Each Enterprise Agreement enrollment term has a three-year term providing you with a defined amount of time that the terms and prices of your purchasing relationship with Microsoft will remain consistent for all products covered in the initial order. This gives you the ability to plan and budget for software license purchases up to three years in advance, reducing annual budget restrictions and easing fiscal year spending challenges. Each enrollment has the option for either a one- or three-year renewal term.
Annual Price per Desktop
The annual price per desktop feature of the Enterprise Agreement provides a predictable
budgeting framework that you can use to forecast desktop technology costs up to three years in advance. A payment (based on the pre-established price per desktop and initial order), is due each year at the anniversary date of your Enterprise Agreement enrollment. Because you pay for your software licenses once annually, the costs normally associated with software license acquisition are reduced. In most cases, the number of software license purchase orders made annually is reduced from hundreds to two or three total. The predetermined price paid for software licenses covered in your initial order protects you from unanticipated price increases, making it easier to stay within your software budget.
What is Microsoft EA true-up?
During the time you are enrolled in the Enterprise Agreement enrollment, it is likely that your business will grow and you will add desktop PCs. When you add desktop PCs, they immediately get the same license coverage as the desktop PCs enrolled at the beginning of the agreement term. You just report added desktop PCs through an annual process, called a “True Up” order. True Up orders consolidate orders for additional software licenses run during the year under one order annually (including the third year before any renewal). Customers have the additional option of truing-up multiple times throughout the year as an added benefit in managing costs. This feature is in addition to the annual True Up required each year.
The annual True Up feature helps reduce time and expense by consolidating the report of
multiple additional software use under one purchase order.
If you need help with your Microsoft Enterprise Agreement – contact us for expert advice.