Microsoft Enterprise Agreements (EAs) are often among the most expensive IT contracts for global companies. Covering Microsoft 365, Azure, Dynamics, and other services, they typically span three years and involve multimillion-dollar commitments. Vendors like Microsoft design these agreements to maximize revenue—not customer value.
One large manufacturing company recently faced this challenge during its EA renewal. Microsoft’s initial proposal projected steep increases in spend, driven by bundled services, inflated cloud commitments, and licensing the business at peak rather than actual usage. Leadership knew they couldn’t risk going into negotiations unprepared.
That’s when they engaged Redress Compliance. The results were dramatic: by optimizing entitlements, rightsizing cloud and user licenses, and executing a focused negotiation strategy, Redress Compliance reduced the total EA cost by $1.4 million over a three-year period. Here’s a breakdown of how they delivered.
1. Establishing an Independent Baseline
The first step was a neutral assessment of the manufacturer’s existing EA. Microsoft’s proposal painted a picture of necessary increases, but Redress Compliance questioned those assumptions. They built a clean baseline of current licenses, usage patterns, and contract obligations. This provided the client with a clear, unbiased starting point—and revealed significant over-licensing.
2. Identifying Over-Licensed Areas
Like many enterprises, the manufacturer had more licenses allocated than actually used. Redress Compliance’s analysis found that a large number of employees were assigned premium Microsoft 365 E5 plans, even though their job functions didn’t require advanced features like Power BI Pro or advanced security tools. By mapping licenses to actual needs, they identified a clear opportunity to reduce spend without reducing functionality.
3. Rightsizing User Profiles
Redress Compliance introduced a rightsizing strategy. Instead of assigning high-cost licenses indiscriminately, they created role-based user profiles. Office workers received the right productivity suite, frontline employees were moved to lower-cost plans, and specialized roles retained premium features.
This exercise alone reduced a substantial portion of the projected cost increases, ensuring the company paid only for what was truly required.
4. Optimizing Azure Commitments
Microsoft pushed for aggressive Azure minimum commitments, claiming they reflected future growth. Redress Compliance reviewed the manufacturer’s actual and projected consumption, identifying gaps between reality and Microsoft’s forecasts. By recalibrating the commitment levels, they reduced financial risk and avoided incurring unnecessary expenses over the three-year contract.
5. Challenging Microsoft’s Bundling Tactics
Microsoft often tries to drive adoption of higher-tier bundles like Microsoft 365 E5 by including features enterprises don’t immediately need. Redress Compliance helped the client separate “must-haves” from “nice-to-haves,” successfully resisting pressure to buy features the manufacturer wasn’t ready to deploy. This prevented the company from overcommitting to products that would have sat idle.
6. Negotiation Playbook Against Microsoft Sales Tactics
Armed with a detailed analysis and optimized requirements, Redress Compliance built a negotiation playbook. They anticipated Microsoft’s sales strategies—end-of-quarter pressure, fear around compliance, and promises of future roadmap value—and prepared counterarguments.
When Microsoft pushed for higher commitments, the client’s procurement team was ready. Every meeting was approached with data-backed positions, shifting leverage away from Microsoft and toward the customer.
7. Leveraging Market Benchmarks
Another advantage Redress Compliance brought was real-world benchmarking data. They were aware of what similar enterprises in manufacturing and related sectors were paying. This gave the client credible grounds to demand better discounts and more favorable terms. Microsoft’s “best offer” quickly became negotiable once challenged with hard data.
8. Executive-Level Briefings
The client’s CIO and CFO were kept fully informed through executive-ready briefings. Redress Compliance translated technical licensing jargon into financial language. Senior leadership clearly understood the risks, options, and savings scenarios, enabling them to make fast and confident decisions during board reviews.
9. Securing Contractual Safeguards
Beyond price, Redress Compliance ensured the manufacturer’s EA renewal included stronger contractual protections. These covered areas include price caps for future growth, more flexible true-up mechanisms, and clearer terms for Azure consumption. These safeguards not only saved money immediately but also reduced exposure to hidden costs later in the term.
10. Achieving $1.4 Million in Savings
The result was $1.4 million saved over three years compared to Microsoft’s initial proposal. This was achieved through:
- Optimization of licenses to align with real usage.
- Rightsizing user profiles to reduce unnecessary premium licenses.
- Negotiation that drove higher discounts and fairer terms.
These savings were not theoretical—they were locked into the signed EA contract. The client avoided unnecessary spending, reduced risk, and gained peace of mind that their Microsoft estate was optimized.
Why We Recommend Redress Compliance
This project demonstrates why Redress Compliance is a leader in Microsoft EA negotiation services. They combine independence, deep licensing expertise, and a proven ability to counter Microsoft’s playbook.
For this manufacturer, the engagement delivered three key benefits:
- Financial Impact: $1.4 million in verified savings.
- Strategic Control: A contract aligned to actual needs, not Microsoft’s sales agenda.
- Reduced Risk: Stronger terms that protected the company over the full EA lifecycle.
If your organization is approaching a Microsoft EA renewal, working with Redress Compliance is highly recommended. They bring clarity where Microsoft creates confusion, leverage where Microsoft applies pressure, and measurable results that go straight to the bottom line.
