A Microsoft EA renewal is not just a procurement exercise — it's a complex negotiation that demands a cross-functional team with the right expertise. This guide shows you how to assemble that team, define roles, and avoid the pitfalls that derail enterprise Microsoft deals.
A typical Microsoft renewal negotiation team consists of 5–7 core members, each bringing unique expertise. Below are the primary roles you should consider and what each is responsible for.
A high-level executive sponsor provides strategic direction and influence. This person sets the overarching goals ("reduce costs by 10%" or "secure approval for specific terms") and ensures the negotiation aligns with business objectives. They have the authority to approve the final deal, resolve internal conflicts, and make trade-off decisions. Their involvement signals to Microsoft that the customer is serious and decisions have top-level backing.
This individual serves as the day-to-day quarterback of the negotiation team. They could come from IT, procurement, or a dedicated SAM/licensing role — what matters is deep knowledge of Microsoft licensing and contracts, plus strong project management skills. They coordinate all team activities, interface directly with Microsoft as the single point of contact, and keep everyone internally "on message." By designating one lead negotiator, you prevent Microsoft from bypassing the process and pitching different ideas to different people.
Microsoft's product licensing rules are complex. A licensing specialist thoroughly understands product terms, usage rights, and programme details. They analyse Microsoft's proposals for compliance and value, formulate creative licensing solutions, and ensure that any negotiated changes maintain the company's compliance and optimisation. This specialist gathers contract details, past true-up records, and runs cost modelling of different licensing scenarios.
Having one or more people representing the technical perspective and future roadmap is essential. They evaluate Microsoft's proposal for technical fit: Do the products and quantities align with planned projects? Are there new technologies you want to adopt — or not? They prevent scenarios where the company pays for a bundle of products that IT has no plan to roll out, and ensure that future requirements (Teams Phone, Power Platform, etc.) are factored into the deal.
Procurement applies strategic sourcing best practices, ensures competitive benchmarks are used, negotiates pricing aggressively, and verifies that contractual terms meet procurement policies. Finance assesses budget impact, models cost scenarios, and ensures the deal receives internal financial approval. Including finance early ensures no last-minute budgetary surprises.
Microsoft agreements contain complex terms beyond just price — liability clauses, data privacy terms, and audit rights. Legal counsel reviews redlines on the MBSA or EA terms, ensures amendments are in the company's favour, and confirms that any promises made by Microsoft are captured in writing. Brief them early about non-standard requests so they can prepare to negotiate those clauses.
Many enterprises engage an independent expert (like those from Redress Compliance) to provide market benchmarks, knowledge of Microsoft's playbook, and negotiation coaching. They analyse proposals, suggest counteroffers based on comparable deals, and bolster the team's capabilities. If you lack deep internal Microsoft negotiation experience, having such an advisor can balance the scales against Microsoft's seasoned sales teams.
Even with a strong team, certain pitfalls can derail a Microsoft negotiation. Be mindful of these common mistakes:
One of the biggest mistakes is scrambling just weeks before the EA expiration. Without adequate time, the team is rushed, and important analyses (usage reviews, benchmarking) are incomplete. Microsoft will sense urgency on your side, weakening your position.
If different stakeholders have different agendas — IT wants all the newest tech while finance wants to cut costs by 20% — Microsoft can exploit those splits. Sales reps often try a "divide and conquer" approach, highlighting a product's value to one team while informing another that the product is essential, creating internal pressure.
Proceeding without key expertise is another pitfall. Negotiating without involving legal until the last minute can result in discovering unacceptable terms too late. Not involving IT operations might mean signing up for a product that IT cannot roll out.
Even with the right people, if they operate in silos, the negotiation suffers. IT might negotiate technical terms while procurement negotiates pricing — but if they aren't in sync, you might trade a technical concession without realising it impacts the price.
Microsoft sales reps are trained to drive the renewal on their timeline and terms — flooding you with information, setting short deadlines for accepting offers, or escalating to your executives to apply pressure.
Having one person handle everything with minimal input leads to blind spots — no single person has full visibility into usage, legal terms, and pricing benchmarks.
A large healthcare company facing a steep renewal quote with a push to move to M365 E5 formed a negotiation task force 12 months in advance, including IT, procurement, finance, and a third-party licensing advisor. The IT and SAM experts provided data showing only a small subset of users would benefit from E5. The procurement lead and CIO held firm against the E5-for-all push, countering with ~20% of users on E5 and the rest on E3, demanding a discount on E5 licences.
A global manufacturing firm's IT and procurement team negotiated what they thought was a solid deal over two months, only looping in legal in the final week. Legal quickly identified problematic terms — an audit clause more onerous than their last agreement and a missing amendment. The legal pushback at the 11th hour led to a scramble, delayed signing past the EA expiration, and a week of uncertainty.
During a negotiation with a financial services company, Microsoft observed the cloud architect was enthusiastic about Azure while the procurement lead focused on cost savings. Microsoft invited the architect to separate "technical roadmap" meetings, encouraging internal lobbying for a larger Azure commitment, while telling procurement that big discounts required more Azure investment.
To ensure your Microsoft renewal negotiation team operates effectively:
Establish your core negotiation team 12–18 months before contract expiration. Make the renewal a formal project with executive sponsorship.
Cover IT, procurement, finance, and legal at a minimum. If internal skills are lacking in licensing or negotiation, budget for an independent expert.
Explicitly define who handles what — pricing, licensing, technical evaluation, contract clauses. Use an internal RACI matrix to avoid duplication and gaps.
Before engaging Microsoft, align on best-case and minimum acceptable objectives. Agree on your BATNA — what you'll do if the deal isn't favourable.
Establish a regular meeting cadence. Share all Microsoft communications with the whole team. Channel all external communications through the Negotiation Lead.
Brief the team on Microsoft's likely tactics. Role-play negotiation meetings. Coach everyone to never agree to new terms individually — always discuss internally first.
Use the Executive Sponsor's authority wisely to remove obstacles and signal to Microsoft that your stances have high-level backing. Ensure they reinforce the team strategy.
Even without a full-time consultant, an external review of your negotiation plan can reveal weak points or additional opportunities — akin to getting a valuable second opinion.
Share your current EA details and renewal timeline. We'll provide an independent licence audit, pricing benchmark, and negotiation strategy — typically within 48 hours.