Microsoft Enterprise Agreement Benefits
- Volume Discounts: Significant cost savings for large organizations.
- Flexibility: Access the latest Microsoft software versions, both cloud and on-premises.
- Manageability: Simplified license management under a single agreement.
- Strategic Alignment: Aligns with long-term organizational IT needs.
- Software Assurance Benefits: Includes training, support, and new product access.
Benefits of Microsoft Enterprise Agreements
Microsoft Enterprise Agreements (EAs) are popular for businesses seeking flexibility and cost-effectiveness in managing software licenses. These agreements are designed for organizations with 500 or more users or devices and offer simplicity and cost savings.
Below, we explore the many benefits of Microsoft Enterprise Agreements in detail, using real-life examples to explain key concepts.
Overview of Microsoft Enterprise Agreements
Microsoft Enterprise Agreements are multi-year contracts designed to simplify the licensing of Microsoft software, cloud services, and more. Typically, these contracts last three years and are customizable according to a company’s size and requirements. EAs offer:
- A single, unified contract that covers software licenses, subscriptions, and services.
- Predictable budgeting thanks to a stable pricing model for the entire term.
- The ability to adjust licensing numbers annually through a ” true-up ” process to accommodate changing needs.
Cost Savings and Budget Predictability
Volume Discounts
One of the most appealing aspects of Microsoft EAs is the cost-saving potential.
- Volume Discounts: With an EA, organizations benefit from volume-based pricing, which means buying licenses in bulk results in lower per-license costs. For instance, a company purchasing Microsoft 365 licenses for 1,000 employees will likely receive a better rate per license than if they purchased individual licenses for smaller teams.
- Locked-In Pricing: With EAs, license pricing is fixed for three years, allowing businesses to predict licensing costs effectively. This helps them manage budgets without worrying about annual price hikes.
True-Up Flexibility
The EA provides flexibility to adjust software needs annually through a “true-up” process:
- Annual Review: Businesses can increase (or decrease) their licenses annually to reflect growth or downsizing. The costs are calculated at the same discounted rate as the original contract.
- Cost Efficiency: If your business grows and you need more licenses, there’s no need to negotiate new deals at potentially higher market prices. True-ups ensure cost-effective scaling.
Read about Microsoft EA pricing.
Simplified Payment Options
Companies enrolled in an EA can choose between annual or upfront payments for their licensing costs.
- Annual Payments: This provides flexibility in cash flow, allowing businesses to spread the cost across multiple financial years.
- Upfront Payments: Offers a way to plan and account for these expenses in advance, reducing the risk of budget surprises.
Cloud Integration and Flexibility
Access to Microsoft Cloud Solutions
With the increasing shift to cloud technologies, Microsoft EAs make it easier for organizations to access cloud products:
- Microsoft 365 and Azure: The EA covers popular services like Microsoft 365, Azure, and Dynamics 365.
- Hybrid Flexibility: Companies can use both on-premises and cloud solutions, which are perfect for transitioning from traditional servers to cloud infrastructure at their own pace.
Hybrid Use Benefits
Many companies are not ready to fully transition to the cloud, and that’s where hybrid usage benefits come into play:
- Azure Hybrid Benefit: This allows businesses to maximize their existing on-premises Windows Server and SQL Server licenses by using them on Azure, significantly reducing cloud costs.
Comprehensive License Management
Single Agreement for All Licenses
EAs provide a centralized agreement for multiple Microsoft products, allowing for easier management:
- Unified View: IT teams gain a unified view of all licenses, making compliance and audits easier.
- Fewer Vendors: Companies can handle their Microsoft licensing in one agreement instead of dealing with several licensing contracts from different vendors.
Easier Compliance Management
- Audit Defense: Since the EA consolidates license information, organizations are better able to provide accurate data during a Microsoft audit.
- Compliance Assurance: The annual true-up ensures that companies stay compliant and do not over-deploy software beyond their license limits.
Scalability to Meet Business Needs
Flexible User and Device Licensing
EAs allow companies to purchase licenses on a per-user or per-device basis, giving organizations flexibility depending on their IT strategy:
- User-Based Licensing: Suited for businesses where employees need access to software on multiple devices (e.g., work computer, home laptop, and mobile device).
- Device-based licensing is ideal for environments like call centers or shared workstations, where multiple users utilize the same device.
Supporting Business Growth and Change
Businesses grow, shrink, and evolve. EAs are designed to support these changes seamlessly:
- Adding New Products: Organizations can add new Microsoft products as needed throughout the EA term, leveraging pre-negotiated pricing.
- Adjustable Licenses: If a company changes, such as mergers or restructuring, licenses can be reassigned or adjusted to match the new structure, ensuring flexibility.
Enhanced Productivity and Security Features
Access to Latest Tools and Technologies
One major benefit of an EA is that it ensures access to the latest software versions:
- Latest Software: Companies enrolled in an EA automatically receive the latest versions of Microsoft products, such as Windows 11 or Microsoft 365, without additional upgrade costs.
- Feature Updates: Frequent updates keep productivity tools like Teams and Outlook current, enhancing collaboration across teams.
Integrated Security
Security remains a top priority for businesses, and Microsoft EAs offer various features to enhance security:
- Microsoft Defender for Endpoint: Included in many licensing plans under an EA, providing advanced protection against cybersecurity threats.
- Conditional Access Policies: Organizations can enforce conditional access policies to ensure that only authorized personnel can access sensitive company data.
Simplified License and Vendor Management
One Point of Contact
Microsoft Enterprise Agreements simplify vendor relationships:
- Single Agreement: By consolidating all Microsoft products into one agreement, companies reduce the complexity of managing multiple vendor contracts.
- Enterprise Software Advisor: Organizations are often assigned a Microsoft partner or Enterprise Software Advisor (ESA) to help manage the agreement and provide personalized service.
Streamlined Licensing for Global Organizations
For companies with offices around the world, EAs offer special benefits:
- Global Pricing: EAs include global pricing, allowing organizations to standardize licensing costs across various locations.
- Consistent Terms: Instead of navigating different license terms across countries, EAs provide consistent, global contract terms.
Software Assurance Benefits
Software Assurance Overview
Software Assurance (SA) is included with Microsoft EAs, providing numerous additional perks for businesses:
- Access to Training: Employees can access online training and instructor-led courses, increasing software proficiency.
- Planning Services: Microsoft provides deployment planning services, helping companies smoothly transition to new versions or adopt new technologies.
Deployment Flexibility and Planning Services
- Azure Migration Planning: Planning services can simplify the transition if your organization is considering a move to Azure.
- Windows Deployment: Software Assurance also helps plan Windows OS rollouts, ensuring minimal disruption during upgrades.
Licensing for a Modern Workforce
Remote Work Enablement
EAs support remote work strategies with products and tools that are optimized for a distributed workforce:
- Microsoft 365: Licensing includes popular productivity apps such as Teams, Word, Excel, and SharePoint, allowing employees to stay connected no matter where they are.
- Device Flexibility: Employees can access software from multiple devices, including personal devices, promoting a seamless work experience.
Bring Your Own Device (BYOD) Support
- Flexible Use Rights: Employees increasingly use their devices for work purposes. EAs provide flexible use rights so users can install and use productivity apps on their devices without requiring additional licenses.
- Conditional Access: Microsoft Intune, often part of EA packages, provides mobile device management (MDM) and ensures company data remains secure even on personal devices.
Support and Additional Resources
Microsoft Premier Support
Enterprise Agreements often come with options for enhanced support:
- Premier Support: Offers faster response times and a dedicated support line for critical issues, ensuring companies get the help they need without significant delays.
- Technical Account Manager (TAM): Businesses may have access to a Technical Account Manager who understands their specific setup and challenges and provides personalized troubleshooting and guidance.
Training Resources
- End-User Training: Software Assurance provides training resources, including self-paced learning and virtual classes.
- Certification Assistance: Businesses can leverage training opportunities to help IT staff gain Microsoft certifications, improving internal skillsets.
Read our article Top 15 Strategies for optimizing my Microsoft EA.
Comparing Enterprise Agreements with Other Licensing Options
| Licensing Option | Ideal For | Commitment | Cost Predictability | Cloud Integration |
|---|---|---|---|---|
| Enterprise Agreement | 500+ users or devices | 3 years | High | Full flexibility |
| Open Value | Smaller organizations, <500 users | 3 years | Moderate | Limited |
| Microsoft CSP | Organizations needing cloud focus | Month-to-month | Low | High |
EA Renewals and Considerations
What Happens at the End of the Term?
When an EA reaches the end of its term, organizations have several options:
- Renew: Renew the agreement for an additional term, which allows for continued predictable pricing and support.
- Transition to CSP: If the organization has moved more heavily into cloud services, switching to a Cloud Solution Provider (CSP) model may make more sense.
- Re-Evaluate License Needs: At renewal, companies can re-evaluate their requirements and adjust their license counts or products accordingly.
Things to Consider Before Renewing
- Current Software Utilization: Assess whether all licenses are still in use and determine if downsizing or shifting to different Microsoft products is needed.
- Cloud Adoption Strategy: With the growth of the cloud, some businesses may find more value in licensing programs specifically focused on cloud solutions than renewing an EA.
FAQs
What is a Microsoft Enterprise Agreement (EA)?
A Microsoft Enterprise Agreement is a three-year contract that helps organizations license software, services, and cloud solutions in bulk, offering predictable costs and flexibility. It is specifically designed for businesses with 500 or more users or devices.
Who should consider a Microsoft Enterprise Agreement?
The most benefiting organizations will have at least 500 users or devices. It is ideal for businesses looking for a unified licensing approach, predictable pricing, and the ability to scale licenses easily.
How does an Enterprise Agreement save costs?
Enterprise Agreements save costs by offering volume-based pricing, meaning buying licenses in bulk reduces the cost per license. Additionally, three-year fixed pricing helps organizations plan budgets without worrying about price increases.
What is the ‘true-up’ process in a Microsoft Enterprise Agreement?
The ‘true-up’ is an annual process that allows organizations to adjust their license counts based on changes in their number of users or devices. This flexibility means companies only pay for additional licenses they need, ensuring they stay compliant while managing growth efficiently.
Can I add cloud services to my Enterprise Agreement?
Microsoft Enterprise Agreements support adding cloud services like Microsoft 365 and Azure. Companies can adopt cloud solutions as they grow, enabling hybrid approaches that work well for on-premises and cloud environments.
What are the payment options for an Enterprise Agreement?
Organizations can choose between annual payments or a single upfront payment for the entire term. The annual payment option spreads out costs, helping better manage cash flow, while upfront payments simplify accounting for those with stable budgets.
Does a Microsoft Enterprise Agreement support hybrid cloud environments?
Yes, the Enterprise Agreement offers flexibility to support hybrid cloud environments. This allows businesses to maintain a mix of on-premises servers and cloud services, making it easier to comfortably transition to full cloud solutions.
What licensing flexibility does the Enterprise Agreement provide?
With an EA, you can choose between user-based and device-based licensing, which provides flexibility based on your business needs. User-based licensing is great for employees who use multiple devices, while device-based is ideal for shared workstations.
What is Software Assurance, and how is it related to an Enterprise Agreement?
Software Assurance is included with an Enterprise Agreement and offers additional benefits such as access to the latest Microsoft software, planning services, technical support, and training. These features help organizations get more value from their Microsoft investments.
What support options are available with a Microsoft Enterprise Agreement?
Enterprise Agreements include access to Microsoft support, often with the option to add Premier Support. This includes faster response times and a dedicated Technical Account Manager who can assist with unique business needs and challenges.
How does the Enterprise Agreement simplify license management?
An EA consolidates all Microsoft licenses into one agreement: a single contract and a unified licensing view. This reduces administrative burdens and simplifies managing licenses, which is especially valuable for larger organizations.
Can I adjust my licenses during the term of the Enterprise Agreement?
Yes, the Enterprise Agreement offers the flexibility to adjust license counts annually through the true-up process. This makes it easy to scale up or down based on staff, devices, or company restructuring changes.
What happens when the Enterprise Agreement term ends?
At the end of the three-year term, you can renew the agreement for another term, transition to a different licensing model like a Cloud Solution Provider (CSP), or re-evaluate your licensing needs to ensure your Microsoft products align with your future business strategy.
What are the key benefits for global organizations with an Enterprise Agreement?
For global organizations, EAs offer consistency in pricing and terms across multiple locations. This allows for centralized control, making it easier to standardize software and manage licensing globally without regional variances.
Is it possible to add new Microsoft products during an Enterprise Agreement?
Yes, you can add new products anytime during the term of an EA. This allows businesses to use new Microsoft technologies as they become available without negotiating new contracts for each addition.
