Case Study: Microsoft EA Renewal for a Large US Retailer
Challenge
A major US retailer with over 150,000 employees and a significant online and physical presence engaged Redress Compliance to assist with its Microsoft Enterprise Agreement (EA) renewal. The retailer’s IT infrastructure supported critical operations such as inventory management, e-commerce platforms, and customer engagement systems. With an impending EA renewal, the company aimed to:
- Analyze current Microsoft deployments and usage.
- Optimize license allocations to reduce waste.
- Develop a roadmap for future IT needs and cloud adoption.
- Benchmark against market standards to secure competitive pricing.
- Negotiate favorable terms that align with business goals.
The retailer required expert guidance to achieve a cost-effective and scalable agreement due to the financial and operational stakes.
The Process
- Deployment Analysis: • Conducted a thorough review of Microsoft product usage, including Office 365, Dynamics 365, and Azure services. • Mapped software deployments against entitlements to identify underutilized and redundant licenses. • Assessed the retailer’s hybrid cloud and on-premise infrastructure to align with licensing needs.
- Optimization: • Identified opportunities to consolidate licenses across departments, reducing overall costs. • Recommended a shift to role-based licensing to better match actual user needs. • Proposed retiring unused and redundant products to streamline the software portfolio.
- Roadmap Development: • Collaborated with IT leadership to define a three-year plan for cloud migration and digital transformation initiatives. • Prioritized solutions that aligned with the retailer’s strategic goals, including enhanced collaboration and customer engagement tools. • Ensured scalability and flexibility to accommodate future growth and market changes.
- Benchmarking: • Compared licensing costs and terms against industry benchmarks for similar retailers. • Provided insights into competitive pricing and market trends to strengthen negotiation leverage.
- Negotiation Strategy: • Developed a data-driven negotiation plan leveraging findings from the analysis and optimization phases. • Negotiated discounts on key solutions, including Azure services and Dynamics 365. • Secured terms allowing periodic adjustments to licensing volumes based on business needs.
Results
- Cost Savings: • Annual savings from license optimization: $5.2 million. • Additional savings through negotiated discounts: $3.4 million. • Total savings achieved over the three-year term: $8.6 million.
- Operational Improvements: • Reduced overall licensing costs by 28% while maintaining full compliance. • Streamlined licensing processes across business units for better management. • Enabled seamless adoption of advanced Microsoft solutions to support digital transformation.
- Strategic Outcomes: • Secured a flexible agreement that supports future IT initiatives and growth. • Improved governance and visibility into software usage. • Positioned the retailer for efficient and scalable cloud adoption.
Quote from the CIO:
“Redress Compliance’s expertise in Microsoft EA renewals delivered exceptional results. Their strategic guidance helped us optimize costs, align our licensing with business goals, and negotiate a flexible agreement that positions us for the future. Their support was invaluable.”
Key Results:
- Savings Achieved: $8.6 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 significant financial and operational benefits for large retailers, ensuring cost efficiency and strategic alignment in Microsoft EA renewals.
