Securing Microsoft Discounts: 5 Strategies to Get Better Pricing
Negotiating with Microsoft can yield significant savings when you use the right strategies (handshake representing a successful deal).
Introduction – “Everything is Negotiable”
Microsoft might initially present a contract quote as if it’s set in stone, but savvy negotiators know that everything is negotiable.
In fact, procurement leaders and IT managers who push back on Microsoft’s first offer often secure 10–15% (or more) in additional savings beyond the standard volume discounts. How? By using leverage and timing to their advantage.
Microsoft’s sales teams have targets to hit and flexibility when it comes to closing strategic deals. With the right approach, even mid-sized enterprises can move the needle on price and terms. Read our Microsoft Negotiation Guide.
The key is to be disciplined, assertive, and well-informed about where you can ask for more. Below, we outline five proven strategies to increase your Microsoft discounts and get a better overall deal.
Strategy 1: Align with Microsoft’s Fiscal Calendar
Timing your negotiation can be as important as what you negotiate.
Microsoft’s fiscal year ends on June 30, and their quarters close at the end of September, December, March, and June. These quarter-end and year-end deadlines create urgency for Microsoft’s sales teams to hit revenue targets.
Leverage this urgency to boost your discount. For example, if your contract renewal or large purchase can be slated to close in Microsoft’s Q4 (April–June) or even at a quarter’s end, the account team will be especially eager to book the deal.
They often have extra discretionary discount authority or promotional funds during these crunch times to incentivize you to sign. By contrast, if you try to negotiate when Microsoft isn’t under pressure (say, early in a quarter), you might get a more rigid stance. The takeaway: whenever possible, schedule big negotiations to conclude at Microsoft’s quarter-end or fiscal year-end.
You may hear last-minute “one-time” offers as the deadline looms – which can translate into a lower price or added freebies if you’re prepared to move quickly.
Just be careful not to cut it too close to your own deadlines; give yourself enough runway to walk away or delay signing by a few weeks. If Microsoft believes a deal might slip into the next quarter, they’re more likely to sweeten the pot to get it done now.
Read our checklist, Microsoft Deal Negotiation Checklist: 10 Preparation Steps for Success.
Strategy 2: Bundle Strategically (But Beware Shelfware)
Another way to unlock more discounts is by bundling additional Microsoft products or services into your deal – but it must be done thoughtfully. Microsoft often dangles higher discounts if you agree to adopt more of its ecosystem.
For instance, upgrading some users from Office 365 E3 to E5, adding a Power Platform or security add-on, or committing to new Azure services can prompt Microsoft to offer a better overall rate. Essentially, you trade a broader commitment for better pricing.
However, this strategy comes with a warning: don’t buy what you don’t need. It’s all too common for organizations to bundle in extra licenses or add-ons “just for the discount,” only to have those extra products sit unused – the dreaded “shelfware.”
To avoid that, only bundle products that have a clear business case or ROI for your organization. For example, say Microsoft proposes you add Teams Phone licenses for your workforce in exchange for a bigger discount on the whole deal.
Rather than blanket-buying it for every employee (when perhaps only a specific department could actually benefit from Teams Phone), negotiate to pilot it or deploy to that targeted group.
You might agree to, for instance, 300 Teams Phone licenses for the call-center team that truly needs it, instead of 3,000 licenses organization-wide that would mostly go unused. This way, you capture the additional discount Microsoft offers for bundling, but minimize waste.
The strategic bundling approach sends Microsoft a win-win message: you’re willing to invest more in their technology ecosystem, but only in areas that add value to your business. In return, you can ask for not just lower unit prices, but possibly other perks (like deployment funds or special pricing on the bundled product).
Just remember to always run the numbers – if the net cost of adding a product outweighs the discount gained, you’re better off saying no. Bundling is powerful if done on your terms, not just because a sales rep suggests it.
Strategy 3: Bring Competitive Bids
Nothing motivates a vendor to drop their price like the fear of losing business. When negotiating with Microsoft, bring competitive pressure to the table – even if you realistically plan to stick with Microsoft. Do your homework on alternative solutions and, if possible, obtain pricing or proposals from their competitors.
For example, if you’re negotiating an Azure cloud agreement, get a comparative quote from Amazon Web Services (AWS) or Google Cloud. If you’re renewing Microsoft 365 for your company, explore what equivalent licensing from Google Workspace might cost. Presenting these alternatives (or even casually mentioning that you’re evaluating them) signals to Microsoft that their deal isn’t the only game in town.
Microsoft’s sales reps are acutely aware of the competitive landscape and will often respond by improving their offer – whether through extra discounts or added value – to dissuade you from switching. Even if a wholesale migration to a rival is unlikely, the mere fact that you have options gives you leverage.
You can say things like, “We’re looking at moving a portion of our workloads to AWS if we can’t get a better Azure rate,” or “Some departments are piloting Google for productivity; we need Microsoft’s pricing to be sharp to justify staying all-in.” Another approach is to utilize Microsoft’s own licensing channels as leverage.
Suppose you hint that you might buy certain services through a reseller or the CSP (Cloud Solution Provider) program (which could mean fewer direct revenues for Microsoft) unless they give you a better deal in the Enterprise Agreement.
In that case, Microsoft will fight to keep that business in-house by sweetening your EA offer. The goal here isn’t to burn bridges or make unrealistic threats – it’s to politely remind Microsoft that you have choices.
In negotiations, options equal power. By demonstrating that you’ve benchmarked the market and are willing to consider alternatives, you nudge Microsoft to close any pricing gaps and match or beat the value you could get elsewhere.
Strategy 4: Use Usage Commitments (But Stay Conservative)
Microsoft rewards customers who commit to larger or longer-term usage, often with substantially better pricing. Think of it as buying in bulk. If you’re able to commit to a certain level of usage upfront – or to a multi-year term – you can unlock bigger discounts and avoid future price hikes.
One common example is Azure consumption commitments. Under an Enterprise Agreement, you might commit to spending a set dollar amount on Azure over three years. In return, Microsoft could offer a significant discount on those Azure rates or even provide free credits or services to support your adoption.
Similarly, with Microsoft 365 or other licenses, if you anticipate growth, it can pay off to pre-purchase expected future licenses now. For instance, if you currently have 1,000 users but expect to add 200 more staff next year, you could negotiate pricing for 1,200 licenses from the start.
By locking those in at today’s discounted rate, you avoid paying higher prices later (which might be at list price if you add them mid-term without negotiation).
This not only yields a better price per unit, but also shows Microsoft you’re making a bigger commitment – often prompting them to reciprocate with a better initial discount. However, caution is crucial: only commit to levels of usage or quantities you are confident you can actually fulfill.
Overcommitting just to get a discount can backfire badly if your plans don’t pan out. Unused licenses (again, shelfware) or underused Azure funds represent money wasted.
It’s better to commit, say, to a conservative 10% growth that you’re sure you’ll meet, than to promise 30% growth and fall short.
Microsoft usually won’t let you reduce your commitment mid-stream, so build in buffer and flexibility for yourself. You might negotiate provisions like the ability to reassign unused funds to other services, or ensure that any additional licenses you do need later will honor the same discount.
In short, using commitments as a lever can indeed drive deeper discounts, but do it with eyes open. By committing to a realistic baseline (or slightly above) of usage, you gain pricing advantages now while avoiding a scenario where you’re paying for capacity you can’t use.
Strategy 5: Ask for Non-Price Incentives
A successful negotiation isn’t only about the dollar-per-license figure. There are many non-price incentives Microsoft can provide that effectively lower your overall cost or improve the value of the deal – if you remember to ask for them.
These extras often fly under the radar, but they can be significant. Microsoft has various programs and funds that reps can tap into to help close deals, especially larger ones. Here are some valuable incentives to consider negotiating for:
- Free training or certification vouchers – Get Microsoft to include training credits for your IT staff or end-users. This saves you money on employee development and ensures you fully leverage the technology you’re buying.
- Consulting or support hours at no charge – Ask for extra support from Microsoft’s engineers or partners, such as onboarding assistance, architecture planning sessions, or dedicated technical support hours. This can be framed as part of the package, helping you implement and use the products more effectively (and saving on hiring outside consultants).
- Promotional Azure or software credits – In cloud deals, Microsoft might provide one-time Azure credits or free trial licenses for certain services. For example, securing a pool of Azure credits can offset future cloud costs, and free licenses for a few months can help you test new features before fully committing.
- Extended payment terms – If budgeting is a concern, see if Microsoft will allow more flexible payment terms. This could mean annual payments (standard for Enterprise Agreements, which is already beneficial) or even requesting an extended payment schedule for a given year. Occasionally, for strategic deals, Microsoft might agree to net-60 or net-90 day payment terms, or to align payments with your fiscal quarters. While this isn’t a direct discount, it improves cash flow.
These perks effectively reduce your total cost or increase the value you get from the agreement. Microsoft often prefers to throw in “added value” instead of further reducing the price, since giving services or credits doesn’t directly hit their bottom line as hard as a pure discount.
Take advantage of that. If a sales rep says they have “no room” left on price, pivot to these items: Can we get some training days for free? How about a Microsoft consultant to help deploy this new product?
You might be surprised at what’s available if you ask. Just as with prices, get any agreed-upon incentives documented in the contract or amendment. A promise of “free training” isn’t worth much unless it’s in writing.
When secured, though, these benefits can greatly enhance your ROI and make the difference between a good deal and a great one.
FAQ: Microsoft Discount Negotiation
Q: How much discount can I realistically ask for on a Microsoft Enterprise Agreement?
A: It depends on your deal’s size and attractiveness to Microsoft, but it’s common to achieve around 10–15% additional discount beyond Microsoft’s initial quote if you have strong leverage. Large organizations or strategic deals sometimes push even further. The key is to justify why you need a better price (budget limits, competitive offers, big commitments) and to ask confidently. Microsoft won’t give extra discounts freely – you have to request and rationalize them.
Q: Does bundling more products always guarantee a better discount?
A: Bundling can help, but only if the added products are truly useful for you. Microsoft will often offer a sweeter deal if you agree to adopt more of their services (since it increases your overall spend with them). However, bundling is not a magic trick for savings if it leads you to buy “shelfware” you don’t use. The best approach is to bundle only what aligns with your needs – then any discount you get on the whole package is pure benefit. If an add-on isn’t needed, you’re better off saying no, even if it means a slightly lower discount, to avoid wasting money on unused licenses.
Q: What if I don’t have any viable competitive bids to show Microsoft?
A: You can still create negotiation pressure by leveraging market benchmarks and alternative channels. Even if you’re not formally bidding out the business, do some research: find out what similar companies are paying, or get a quote from a Microsoft Cloud Solution Provider (CSP) partner for a portion of your licensing. You can bring these data points into discussions (e.g., “we’ve seen pricing in the market at X per user, we need you to be in that ballpark”). Additionally, hint at internal alternatives – maybe you could move a certain workload to a different platform or delay a project if costs are too high. You don’t need a formal RFP to suggest that Microsoft could lose some of your spend. The goal is to show that you are an informed buyer with options, encouraging Microsoft to put its best offer forward.
Read about our Microsoft Negotiation Services.
