Case Study: Microsoft EA Renewal for a Leading German Automotive Manufacturer
Challenge
A prominent automotive company headquartered in Germany, with over 100,000 employees and a global presence, engaged Redress Compliance to assist with its Microsoft Enterprise Agreement (EA) renewal. The company relied on Microsoft’s technologies for critical functions such as design and engineering, supply chain management, and global collaboration. Facing the expiration of its EA, the company needed to:
- Analyze its deployment of Microsoft solutions across production facilities, R&D centers, and administrative offices.
- Identify areas of inefficiency and optimize license usage.
- Develop a future-focused roadmap to align with digital transformation goals, including autonomous driving and connected car initiatives.
- Benchmark licensing costs and terms against other automotive giants.
- Negotiate a cost-effective and scalable agreement tailored to its operational needs.
The complexity of the company’s global operations and rapid technological advancements required a tailored and strategic approach to the renewal process.
The Process
- Deployment and Usage Analysis: • Conducted a detailed review of Microsoft deployments, including Azure, Office 365, and Dynamics 365. • Mapped software entitlements to actual usage across factories, design studios, and corporate offices. • Identified underutilized licenses and redundant software allocations.
- Optimization of Licensing Portfolio: • Consolidated licenses across departments to reduce duplication and improve cost-efficiency. • Transitioned specific teams to role-based and project-specific licensing models. • Recommended retiring legacy systems and applications no longer aligned with the company’s goals.
- Strategic Roadmap Development: • Partnered with IT leadership to design a three-year roadmap prioritizing cloud adoption and AI-driven solutions. • Focused on integrating Microsoft’s advanced analytics and collaboration tools into automotive design and production workflows. • Ensured scalability to support autonomous driving, IoT, and connected vehicle initiatives.
- Benchmarking and Negotiation Strategy: • Compared the company’s licensing costs and terms with other automotive leaders. • Identified key areas for cost reductions and potential value-adds in Microsoft’s offerings. • Developed a data-driven negotiation strategy to secure favorable pricing and flexible terms.
- Agreement Renewal Support: • Presented a comprehensive proposal to Microsoft, leveraging data and industry benchmarks. • Negotiated substantial discounts on Azure and Dynamics 365 licenses tailored to the company’s growth strategy. • Secured flexible terms to accommodate fluctuations in production cycles and project demands.
Results
- Cost Savings: • Annual savings from optimized licenses: €10 million. • Additional savings through negotiated discounts: €6 million. • Total savings achieved over the three-year term: €16 million.
- Operational Enhancements: • Reduced licensing costs by 28% while maintaining compliance. • Streamlined licensing processes across global operations. • Improved collaboration and innovation through optimized software deployment.
- Strategic Outcomes: • Achieved a flexible EA aligned with the company’s digital transformation and sustainability goals. • Positioned the firm to seamlessly integrate AI, IoT, and connected vehicle technologies. • Strengthened governance and visibility into software usage and costs.
Quote from the CIO:
“Redress Compliance’s support in our Microsoft EA renewal was transformative. Their expertise ensured significant cost savings while enabling us to align our IT strategy with our innovation goals. Their guidance was critical to achieving a scalable and flexible agreement.”
Key Results:
- Savings Achieved: €16 million over three years.
- Compliance Enhanced: Fully compliant with Microsoft licensing policies.
- Operational Efficiency: Optimized licensing portfolio with reduced redundancy.
- Strategic Alignment: Tailored licensing strategy supporting connected car and autonomous driving innovations.
This case demonstrates Redress Compliance’s ability to deliver tailored solutions for the automotive industry, ensuring cost optimization, compliance, and support for long-term technological advancements.
