Editorial photograph of an Australian boardroom
Case Study · Microsoft · CSP Optimization

Fifteen percent saved on Microsoft CSP. Australian telecommunications company.

An Australian telecommunications company cut Microsoft CSP costs by fifteen percent across the multi year subscription envelope while gaining cloud commercial flexibility.

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15%Saved on CSP
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The Australian telecommunications company case study sets out the broader Microsoft buyer side framework that delivered 15% saved on csp across the broader Microsoft renewal envelope. The actual customer Microsoft deployment framework anchors against the Microsoft Customer Agreement Enterprise and the Microsoft Product Terms. Read the related Microsoft Practice, the Microsoft Hub, the Microsoft EA Renewal Playbook, the Microsoft 365 License Optimizer, and the full case study library.

15%
Saved on CSP
6 months
Engagement
CSP
Optimization
Australia
Telecommunications

The customer profile

The customer is a top quartile Australian telecommunications company operating mobile, fixed line, and broadband consumer and business segments with a workforce anchored on Microsoft 365, Microsoft Teams, Microsoft Azure, and the broader Microsoft Defender framework. The firm runs a Microsoft Cloud Solution Provider commercial framework on a multi year CSP subscription envelope rather than an Enterprise Agreement framework.

The estate spans Microsoft 365 E5, Microsoft 365 Apps for Enterprise, Microsoft Defender for Endpoint, Microsoft Purview, Microsoft Sentinel, and a sizeable Azure consumption framework anchored on the contracted Microsoft Customer Agreement Enterprise. The CSP partner ran the broader Microsoft commercial framework, with limited buyer side visibility into the broader Microsoft list framework.

The opening publisher quote

The CSP partner opened the renewal cycle with a CSP envelope that anchored against the contracted Microsoft scope plus a ten percent uplift and a packaged Microsoft 365 framework that anchored against the existing E5 scope. The opening framework anchored against the publisher preferred broad Microsoft scope rather than the actual customer Microsoft deployment framework, with limited buyer side disclosure of the underlying Microsoft list framework or the CSP partner margin framework.

The opening CSP envelope packaged the named user count, the Azure consumption framework, and the broader Microsoft commercial envelope on a single CSP commercial framework. The buyer side load bearing dimension was the gap between the publisher anchored CSP scope, the CSP partner margin framework, and the actual customer Microsoft deployment framework after a multi year CSP run.

The Redress approach

Redress reframed the Microsoft CSP renewal cycle around the actual customer Microsoft deployment framework. Across months one to two, Redress built the actual customer Microsoft 365 named user baseline, the actual customer Azure consumption baseline, and the broader Microsoft Defender deployment baseline on the buyer side framework. The deployed footprint anchored the CSP envelope reframe.

Across months three to four, Redress brought visibility to the underlying Microsoft list framework and the CSP partner margin framework, anchoring against publicly available Microsoft list framework benchmarks and against the broader CSP partner channel framework. Months five to six ran the renewal negotiation cycle in parallel with a credible CSP partner switch posture on the buyer side commercial framework.

Buyer side moves

Redress applied a nine move framework across the Microsoft CSP renewal cycle.

  1. Anchor on the deployed baseline. Anchor the renewal envelope against the actual customer Microsoft 365 named user baseline.
  2. Surface the underlying list framework. Build visibility into the underlying Microsoft list framework against publicly available benchmarks.
  3. Surface the partner margin framework. Build visibility into the CSP partner margin framework against the broader CSP partner channel framework.
  4. Decompose the packaged M365 stack. Decompose the packaged Microsoft 365 framework and rightsize E5 versus E3 plus selective add ons.
  5. Build CSP partner switch posture. Build a credible competitive posture across alternative CSP partners.
  6. Standalone the security frameworks. Negotiate the broader Microsoft Defender, Microsoft Purview, and Microsoft Sentinel frameworks on standalone commercial frameworks.
  7. Cap the renewal escalator. Anchor the renewal escalator at zero or a contractual cap.
  8. Lock price protection. Lock in price protection terms across the multi year CSP envelope.
  9. Run the vendor management posture. Run the broader Microsoft vendor management posture across the contracted Microsoft Customer Agreement Enterprise and the contracted CSP partner framework.

The commercial outcome

The customer closed the Microsoft CSP renewal at fifteen percent below the publisher opening CSP envelope across the multi year CSP framework. The CSP envelope rightsized the Microsoft 365 named user count and decomposed the packaged E5 framework into a tiered E3 plus selective add ons framework anchored on the actual customer deployment framework.

The renewal also locked in zero percent escalation across the renewal term, removing the publisher uplift framework that had driven the opening quote. The customer also retained CSP partner switch flexibility through twelve month rolling commit terms on the broader Microsoft CSP envelope rather than a multi year locked CSP commit framework.

Lessons for similar firms

Five lessons translate to similar Australian and APAC enterprises running a Microsoft CSP framework.

  1. Surface the underlying list framework. Build visibility into the underlying Microsoft list framework against publicly available benchmarks.
  2. Surface the partner margin framework. Build visibility into the CSP partner margin framework.
  3. Decompose the packaged stack. Decompose packaged Microsoft 365 frameworks and rightsize E5 versus E3 plus selective add ons.
  4. Run a credible partner switch posture. Run a credible CSP partner switch posture across every renewal cycle.
  5. Bring independent buyer side counsel. Independent buyer side counsel materially shifts the commercial framework.

Read the broader Microsoft Cloud Agreements Playbook and the Microsoft services practice.

How we engage on Microsoft

  • Microsoft scoping. Six week engagement that scopes the contracted Microsoft framework. Microsoft Practice.
  • Microsoft negotiation. Renewal engagement against the contracted Microsoft Customer Agreement Enterprise. Microsoft EA Renewal Playbook.
  • Microsoft audit defense. Independent audit defense engagement across the broader Microsoft audit framework. Audit defense kits.
  • Vendor Shield. Always on multi vendor management posture across every Microsoft renewal, true up, and audit defense moment. Vendor Shield.
  • Run the calculator. Size the broader Microsoft framework with the Microsoft 365 License Optimizer. The software spend assessment sizes the broader Microsoft commercial framework.

Read the related Microsoft case studies across the broader Microsoft case study cluster: the full case study library, the Microsoft Hub, the Microsoft Practice, the Vendor Shield framework, the Renewal Program, the Benchmarking framework, the About Us page, the management team page, the locations page, and the contact page.

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15%
Saved on CSP
6 months
Engagement
Microsoft
Practice
500+
Enterprise clients
100%
Buyer side

We cut Microsoft CSP costs by fifteen percent and gained cloud commercial flexibility through twelve month rolling commit terms and standalone frameworks on Microsoft Defender, Microsoft Purview, and Microsoft Sentinel. The renewal envelope anchored on the actual customer Microsoft deployment framework rather than the publisher preferred broad Microsoft scope.

Group Chief Information Officer
Australian telecommunications company
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