Case Study: Microsoft EA Renewal for a Large Canadian Manufacturer
Challenge
A leading Canadian manufacturing company with over 50,000 employees and operations across North America engaged Redress Compliance to support its Microsoft Enterprise Agreement (EA) renewal. The company’s IT infrastructure powered critical functions such as production systems, supply chain logistics, and customer relationship management. With an upcoming EA renewal, the manufacturer aimed to:
- Analyze its current Microsoft deployments and usage patterns.
- Optimize license allocations to eliminate waste.
- Develop a roadmap for future IT and cloud adoption.
- Benchmark against industry peers to ensure competitive pricing.
- Negotiate favorable terms for the new EA that align with its business objectives.
The company required a comprehensive strategy to manage its complex licensing environment while minimizing costs and maintaining flexibility.
The Process
- Deployment Analysis: • Conducted a detailed review of Microsoft product usage, including Office 365, Azure, and Dynamics 365. • Mapped current deployments to entitlements, identifying underutilized licenses and areas of overprovisioning. • Assessed hybrid cloud and on-premise infrastructure to ensure alignment with future goals.
- Optimization: • Identified opportunities to consolidate licenses across departments, reducing licensing costs. • Recommended a shift to role-based licensing to better match actual user needs. • Proposed retiring redundant and unused products to streamline the software portfolio.
- Roadmap Development: • Collaborated with IT leadership to define a three-year roadmap for digital transformation and cloud migration. • Prioritized solutions critical to the company’s production and supply chain efficiency. • Integrated flexibility into the roadmap to accommodate evolving business demands and growth.
- Benchmarking: • Compared licensing costs and structures against industry benchmarks for similar manufacturers. • Provided insights into market trends and best practices to ensure competitive pricing.
- Negotiation Strategy: • Developed a data-driven negotiation approach using insights from the analysis and optimization phases. • Secured substantial discounts on Azure services and Office 365 subscriptions. • Negotiated terms that allowed for periodic adjustments to licensing volumes as business needs evolved.
Results
- Cost Savings: • Annual savings from license optimization: CAD 4.8 million. • Additional savings through negotiated discounts: CAD 2.5 million. • Total savings achieved over the three-year term: CAD 7.3 million.
- Operational Improvements: • Reduced overall licensing costs by 30% while maintaining compliance. • Streamlined licensing processes across multiple divisions for better management. • Enabled seamless adoption of advanced Microsoft solutions to support digital transformation initiatives.
- Strategic Outcomes: • Secured a flexible EA aligned with the company’s growth and innovation goals. • Improved governance and visibility into software usage and costs. • Positioned the company for efficient and scalable cloud adoption.
Quote from the CIO:
“Redress Compliance’s support was instrumental in navigating our Microsoft EA renewal. Their insights helped us optimize costs, align our licensing with business needs, and secure a future-proof agreement. Their expertise delivered exceptional value.”
Key Results:
- Savings Achieved: CAD 7.3 million over three years.
- Compliance Enhanced: Fully compliant with Microsoft licensing policies.
- Operational Efficiency: Optimized licensing portfolio with reduced waste.
- Strategic Alignment: Licensing strategy tailored to business growth and IT innovation.
This case highlights Redress Compliance’s ability to deliver substantial financial and operational benefits for manufacturers, ensuring cost efficiency and strategic alignment in Microsoft EA renewals.
