Why Most Organizations Negotiate Support and EA Separately — and Why That Is a Mistake
The default pattern is to negotiate these agreements independently: EA renewal happens in year three, support renewal happens in year two or four, procurement manages them as separate events. This default approach cedes enormous negotiating leverage to Microsoft.
The Strategic Case for Co-Termination
Maximum Leverage: When your EA and support expire together, Microsoft faces the risk of losing both revenue streams simultaneously. This concentrates your bargaining power into one event rather than diluting it across two separate, smaller negotiations.
Total Cost Visibility: A unified renewal forces everyone — Microsoft's sales team, your procurement team, and your CFO — to see the complete picture of Microsoft spend. Hidden support cost increases become visible when they are presented alongside licence costs.
Cross-Contract Leverage: Bundle negotiation lets you trade concessions between agreements. If Microsoft cannot reduce EA prices further, you push on support fees. If support fees are rigid, you extract Azure credits or deployment services. Each contract becomes a lever for the other.
Reduced Administrative Burden: Instead of perpetually preparing for one Microsoft negotiation or another, your team focuses its energy on one renewal every three years.
How to Achieve Co-Termination: A Step-by-Step Timeline
18 Months Before EA Renewal: Identify the Gap
Document the expiry dates of your EA, Unified Support contract, and any related agreements. Calculate the gap between your support and EA end dates. This gap determines the bridge strategy you will need.
12 Months Before: Engage Microsoft on Co-Term Options
Signal to your Microsoft account team that you intend to co-terminate support with your EA. Request pricing for a prorated "bridge" support renewal — a short-term extension (6, 12, or 18 months) that aligns the next support end date with your EA expiry.
9 Months Before: Align Internal Processes
Ensure your procurement, IT operations, and finance teams are coordinating on a single Microsoft renewal. Merge the EA and support budgets into one approval workflow. Brief your CFO on the total Microsoft spend and the savings potential.
6 Months Before: Launch Unified Negotiation
Begin formal EA and support negotiations simultaneously. Require Microsoft's licensing sales team and support sales team to coordinate their proposals. Present a unified counter-offer that addresses both contracts as a package.
3 Months Before: Secure Coverage Extension
If negotiations are on track, finalize terms. If they are still in progress, negotiate a written short-term extension of your existing support agreement (month-to-month or quarterly) to prevent a coverage gap.
Bundle Negotiation: Tactics That Deliver Real Savings
Once your EA and support are co-termed, the following tactics apply leverage across both contracts:
Trade EA price concessions for support fee reductions. If Microsoft resists lowering your EA list price, extract equivalent value through lower support percentages or capped support increases at future renewals.
Demand support quality guarantees in exchange for longer EA term. Trade a three-year EA commitment for contractual SLA improvements (faster response times, dedicated support engineer, proactive services).
Bundle Azure credits with support fees. Structure the deal to include Microsoft Azure credits (worth 8 to 12 percent of your EA value) in exchange for multi-year support at a fixed percentage.
Need Microsoft Renewal Guidance?
Redress Compliance specializes in complex Microsoft negotiations. Our advisors help enterprises co-terminate agreements, benchmark fair pricing, and extract maximum value from bundle negotiations.
Explore Microsoft Advisory →Avoiding Coverage Gaps During Alignment
Best Practice: Pre-Negotiated Extension Before your support contract expires, secure a written commitment from Microsoft to extend coverage on existing terms (month-to-month or quarterly) while negotiations continue. Microsoft will always agree to this when a larger deal is in progress.
Acceptable: Short-Term Bridge Renewal If co-termination requires a longer gap, sign a short-term (3 to 6 month) support renewal at current rates. This is more expensive than an extension but guarantees uninterrupted coverage.
Avoid: Lapsed Coverage Under Pressure Never let support expire without a plan. Microsoft will use the urgency of lapsed coverage to pressure you into accepting unfavourable terms.