Make sure you have a good understanding of what would be a reasonable price for the absolute minimum you need for your business. This requires understanding how your company uses these Microsoft products. A 20% discount is always synonymous with losses if you spend 45% too much, so keep an eye on this balancing exercise if you decide to increase the scale. 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. The only other way you can get around this unfortunate situation is to start early and take the negotiations seriously as quickly as possible. In the past, the intensity of the negotiations peaked about one to three months before the renewal, but now, in order to reach the most ideal agreement, negotiations should begin seriously about three to six months before renewal.
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. 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. When signing the agreement, the customer must define and communicate to Microsoft the number of desktop computers or qualified users as well as Microsoft Enterprise products or Enterprise Online Services. This information represents the first purchase. Each anniversary is due to a “True Up Order” for additional desktops or qualified users, based on which the total cost for the previous year is calculated.
Under a traditional agreement on microsoft Enterprise, the customer is allowed to authorize corporate products individually or as a standard platform. However, at least one enterprise product must be standardized throughout the company. 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.