12 Months Ahead: Early Planning Checklist for Your Microsoft EA Renewal
Why the 12-Month Mark Matters
Starting the renewal process a full year in advance might feel premature, but it’s essential for a successful Microsoft Enterprise Agreement (EA) renewal.
Twelve months give you time to gather data, align your team, and avoid last-minute scrambling.
Microsoft’s sales machine is already eyeing your renewal at this point, so a proactive approach lets you set the agenda and avoid being rushed into a suboptimal deal.
In short, beginning early puts you in control of the timeline and priorities – not the vendor.
Read our ultimate guide to Microsoft EA renewal strategies.
Below is a high-level timeline of key milestones in the 12 months leading up to an EA renewal:
| Timeline | Key Actions (Buyer) | Expected Outcome |
|---|---|---|
| T–12 Months | Form team; audit licenses; set goals | Team in place, baseline established |
| T–9 Months | Finalize strategy; benchmark & plan alternatives | Strategy approved internally |
| T–6 Months | Engage Microsoft/resellers; request initial quote | Quote obtained for analysis |
| T–3 Months | Negotiate terms; push for concessions | Draft deal with concessions |
| Renewal | Sign agreement; communicate changes | Signed EA and rollout plans |
Executive Alignment: Secure Leadership and Build Your Team
Establish an executive-sponsored renewal team now. At 12 months out, assign a CIO or CFO as Executive Sponsor and assemble a cross-functional team for the EA renewal. Clear roles and leadership buy-in give you a single internal voice to Microsoft.
Each member should understand the renewal goals and their role in achieving them.
| Role | Primary Focus & Responsibility |
|---|---|
| Executive Sponsor | Sets direction and goals. Provides top-level support and can escalate issues to Microsoft’s senior management. |
| Negotiation Lead | Project manages the renewal and leads negotiations. Coordinates the team and is the single point of contact with Microsoft. |
| Licensing Specialist | Analyzes entitlements vs. usage to find unused licenses or overspending. Ensures Microsoft’s offers meet your actual needs. |
| Procurement/Finance | Benchmarks pricing and manages the budget. Negotiates costs and ensures the deal fits within financial constraints. |
| Legal Advisor | Reviews/redlines contract terms. Ensures protections are in place and all negotiated changes are captured in the agreement. |
Kick off the project with a meeting to confirm each person’s role and the renewal objectives.
With everyone internally aligned, Microsoft will find it much harder to “divide and conquer” during negotiations.
Baseline License Assessment: Inventory, Usage, and Needs
Perform a thorough license audit now:
- Inventory vs. usage: Catalog all licenses and subscriptions, and compare them to actual usage. Identify any unused or underused licenses (“shelfware”) and plan to cut them at renewal.
- Optimize & clean up: Downgrade any users on overly expensive plans and eliminate redundant products. Also, fix any licensing shortfalls now (true-up anything unlicensed) so Microsoft can’t use it against you.
By establishing a clear license baseline, you’ll enter negotiations armed with facts. You can confidently challenge any “you need more of X” claims and focus on rightsizing your environment to control costs.
Read what to do 6 months out, 6 Months Until Microsoft EA Renewal: Key Mid-Stage Milestones.
Contract Review: Key Dates, Terms, and Leverage
Review your existing EA contract for anything that will shape your renewal approach:
- Mark critical dates: Know your EA end date and any required notices. Plan for any final true-up and note if your renewal falls near Microsoft’s fiscal year-end (June 30) – that timing can work in your favor.
- Identify key terms: List special pricing provisions or flexible terms in your current deal to renegotiate in the new one. Also, flag any unfavorable clauses, such as overly broad audit rights or no ability to reduce licenses mid-term, that you want to change.
Understand that the renewal is your chance to renegotiate everything – pricing, terms, and scope.
Being on top of dates and contract details ensures you won’t be surprised by any fine print and can use these details to your advantage during talks.
Vendor Engagement Plan: Timing and Strategy with Microsoft
Don’t let Microsoft dictate the timeline. Plan out when and how you’ll engage the vendor (formal negotiations typically begin around 6 months before expiration):
- Shop around (create competition): Indicate that you’re exploring alternatives. Solicit a quote from a second LSP or evaluate Microsoft’s Cloud Solution Provider (CSP) offerings for some needs. Even if you stay with an EA, showing Microsoft that you have options puts pressure on them to offer a competitive deal.
- Control communications: Funnel all vendor interactions through your negotiation lead. Make it clear that renewal discussions go through this person. This prevents back-channel tactics – if a Microsoft representative tries to bypass a department head, redirect them back to your process. Consistent messaging keeps you firmly in control.
- Don’t be rushed by sales tactics: Microsoft may propose an “early renewal” deal or set arbitrary deadlines to create urgency. Stick to your plan. Commit only when the terms are right for you – not just to meet a sales deadline. Your leverage often increases as the expiration nears (Microsoft’s urgency peaks near their fiscal year-end), so don’t give that up too soon.
By scripting your engagement approach early, you ensure that when you do start discussions, it’s on your terms.
You’ll come to the table prepared, and Microsoft will recognize they’re dealing with a savvy, well-organized customer.
Training & Advisory: Educate Your Team, Consider Expert Help
Take advantage of the lead time to strengthen your negotiating position:
- Build internal know-how: Update your team on Microsoft’s latest licensing changes and past lessons learned. Make sure they won’t repeat earlier mistakes or be caught off guard by new sales tactics. A knowledgeable team is far less likely to be misled by Microsoft’s pitches.
- Consider outside expertise: If your team lacks Microsoft licensing savvy, bring in a consultant for benchmark data and negotiation advice. They can help craft counteroffers and spot hidden contract traps, bolstering your strategy with specialized insight.
Investing in internal education (and external advice, if needed) will pay off when negotiations start. Your team will be confident in pushing back on dubious claims, aware of what’s achievable, and united in strategy.
Budget Planning: Model Costs and Set Targets
Start financial planning early so there are no budget surprises:
- Estimate costs & factor changes: Calculate what renewing everything “as is” would cost at current prices (baseline), then adjust for any planned reductions or additions. Include any known Microsoft price increases.
- Run scenario models: Model a few scenarios (best-case, worst-case) to see how different decisions impact the 3-year cost. For example, compare a scenario where you drop all identified shelfware vs. one where you also add a new product request. Knowing the range helps set expectations.
- Set targets & align internally: Define your budget target (say 0% increase or 10% savings) and a hard cap as your walk-away point. Get leadership to agree on these numbers. Make sure IT and finance resolve any spending priority conflicts now, so you all present a united front with a clear budget in negotiations.
Doing this homework 12 months out gives you a firm grasp of what you can afford. It’s much easier to negotiate firmly when you have data-backed cost models and a united leadership mandate on budget limits.
Communication Plan: Outreach and Documentation
Keep the organization in the loop and maintain a single source of truth:
- Gather business input & set expectations: Ask department heads what Microsoft services they actually need going forward and what they might scale back or drop. Also, let them know early that cost control is a priority – some unused services or upgrades may be pulled back. This way, the renewal reflects real business needs, and no one is caught off guard by necessary cuts.
- Centralize messaging: Tell everyone that Microsoft renewal discussions go through the core team only. This prevents well-meaning managers from engaging with Microsoft on the side or agreeing to unofficial deals that could weaken your negotiating position. It also signals to Microsoft that your company is coordinated and cannot be easily divided.
- Document the plan: Maintain one repository of your analysis, key decisions, and requirements. Keep logs of major internal decisions (for example, which products you’re willing to cut or must have). Having everything written down keeps the team synchronized and provides a quick reference if questions arise during fast-moving negotiations.
Open communication and solid documentation ensure that all stakeholders are aligned. There will be no last-minute “I didn’t know” surprises internally, and you’ll have a paper trail to back up your positions during talks.
Final Checklist: 12 Months Before Renewal
By the one-year-to-go mark, you should have initiated these key actions:
- Executive sponsorship & team: Secure a C-level sponsor and form a cross-functional team with assigned roles.
- Baseline assessment completed: Finish your license inventory and usage analysis. Identify what to cut or change based on actual needs.
- Contract review done: Know your EA’s end date, critical terms, and any current concessions or problem clauses you want to address.
- Goals and budget set: Define what a successful renewal looks like and establish internal budget limits. Get leadership sign-off on these.
- Vendor engagement mapped out: Plan your timeline for engaging Microsoft. Decide if you’ll seek competitive quotes or explore alternatives, and make sure all vendor contact goes through your lead negotiator.
- Team prepared: Update the team on Microsoft’s latest licensing nuances and consider external advice if there are knowledge gaps. Everyone should be aligned on strategy before talks begin.
- Business outreach done: Communicate with business units to gather input and keep them informed of potential changes. No surprises for departments later.
- Documentation in place: Organize all key records in a central repository for easy reference as you proceed.
Starting these steps 12 months ahead greatly improves your leverage and clarity.
Early planning means that as the renewal approaches, you’ll be negotiating from a position of strength — with unified internal support, hard data on your side, and a clear game plan to achieve the best deal for your organization.
Read about our Microsoft EA Optimization Service.
