What Is Enterprise Agreement Microsoft

Microsoft is committed to moving its enterprise customer base from traditional on-premises software to its subscription-based cloud services. Revenue from commercial cloud offerings is growing significantly, while revenue from traditional software is declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success will be measured by how well it fulfills this mission, and customers will be under greater pressure to move to the cloud or pay the price through greater complexity of contracts and pricing for on-premises solutions. Most customers have made the leap to 365 and are experimenting with at least azure. The good news is that the agreement window is always open for all new cloud spending with Microsoft. There are a growing number of licensing and subscription optimization challenges to overcome when doing business with Microsoft, as well as new costs, flexibility, and licensing/subscription options that you can take advantage of. As Microsoft continues its metamorphosis and business budget and usage requirements change rapidly, customers need to prepare for a more sophisticated procurement and supplier management environment. Ea renewal: When it`s time to renew an EA, you can review your entire investment and make adjustments to ensure the new agreement meets current and future requirements. In a three-year contract, the number of desktops and qualified users can be adjusted on each contract anniversary. This allows for more flexibility to meet changing requirements. The rights of use are limited and end at the expiry of the contract. Microsoft`s best-offer discounts are rarely the best in their class.

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 EE renewals, overspending increase exponentially. Customers should benchmark prices across all facets of their Microsoft fleet to ensure they are getting a fair deal and ensure they are paying a price that is on or better than the market. While the vendor`s cloud-based offerings may be the future of its enterprise business, most Microsoft customers are still operationally and contractually bound to on-premises deployments. An overview of a fair price for Microsoft`s offerings is the first step in reducing EA`s costs. But that`s only half the battle. To effectively reduce costs, customers need to understand how their individual business needs align with standard conditions (especially for cloud offerings), dozens of license/subscription swaps, and options available to them. .