What Is An Enterprise Agreement With Microsoft

There are many ways to license and/or subscribe to Microsoft products. The Licensing Solutions Provider or the account employee of a given company may not be well aware of all the options available. However, they are well trained (and motivated by incentives) to encourage customers to increase the cost of licensing. Make sure you ask Microsoft`s licensing specialists how to better structure licensing for reduced expenses and consider getting impartial expertise to help the sourcing team review the recommendations. Changes in today`s business climate, coupled with Microsoft`s mission to relocate businesses to the cloud, are changing the way it does business with its largest customers. Companies considering renewing their enterprise agreements or acquiring supplier offers for the first time can use the forces that fuel Microsoft`s behavior at the negotiating table. With the structure of the registration agreement, you can easily add new products and services if necessary: otherwise, the customer can sign a purely Enterprise Online service agreement with Microsoft. This option does not require company-wide standardization. Customers must acquire at least 500 Enterprise online service licenses.

Transparency in what makes a fair price for Microsoft`s offerings is the first step towards reducing EA`s costs. But that`s only half the fight. To effectively reduce costs, customers need to understand how their individual business requirements meet standardized conditions (especially for cloud offerings), dozens of license/subscription swaps, and the options available to them. As there are more options available, it is important that customers understand which licensing and subscription programs best support their technology, business and cost management requirements. and details of compliance and costs associated with migration from current states to future countries. In addition, companies need to understand where Microsoft is willing to be flexible, because it refers to the conditions of price protection and use elasticity, especially in the midst of economic volatility, and negotiate these conditions accordingly in their EA. Microsoft`s mission is to transfer its customers within the traditional on-premise software company to its subscription-based cloud services. Revenue from its cloud commercial offerings is growing strongly, while traditional software sales are declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business.

Microsoft`s success will be measured against the success of this mission, and customers will be under increased pressure to travel to the cloud or to pay for on-prime-price solutions through increased contract and price complexity. Most customers have managed the jump to 365 and are experimenting with azure. The good news is that the window of agreement for new cloud editions with Microsoft is still open. Microsoft`s «Best Offer» discounts are rarely the best in the category. The difference between the discount a customer receives and what another customer receives with similar requirements can be significant. When a below-average discount becomes the basis for future EA renewals, spending increases exponentially. Customers should perform price-referential analyses on all facets of their Microsoft property to verify that they receive a fair offer and to ensure that they pay a price that is in the market or better. If you have more than 250 devices in your organization, chances are you`ve heard more than once how the Enterprise Agreement (EA) was concluded.