Case Study: Microsoft EA Renewal for a Leading Retailer in Mexico
Challenge
A major Mexican retailer with over 250,000 employees and an extensive network of stores and e-commerce platforms engaged Redress Compliance to assist with its Microsoft Enterprise Agreement (EA) renewal. The company’s IT infrastructure supported vital operations, including inventory management, supply chain logistics, customer engagement, and omnichannel retail strategies. Facing the expiration of its EA, the retailer needed to:
- Conduct a thorough assessment of its Microsoft software deployments across retail stores, warehouses, and corporate offices.
- Identify opportunities to optimize licensing costs and eliminate inefficiencies.
- Align its licensing strategy with digital transformation goals, including AI-driven analytics and enhanced customer experiences.
- Benchmark costs and agreement terms against global retail peers.
- Negotiate a flexible agreement to accommodate seasonal workforce fluctuations and expand operations.
Given the scale and complexity of the retailer’s operations, a strategic and customized approach was critical to achieving cost efficiency and scalability.
The Process
- Deployment and Usage Analysis: • Conducted a detailed review of Microsoft deployments, including Azure, Office 365, and Dynamics 365. • Analyzed software usage patterns across retail, distribution, and administrative units. • Identified underutilized licenses and redundant software allocations.
- Optimization of Licensing Portfolio: • Consolidated licenses across departments to reduce duplication and inefficiencies. • Transitioned specific teams to role-based and department-specific licensing models. • Recommended retiring outdated or unnecessary tools that no longer aligned with the company’s strategic goals.
- Strategic Roadmap Development: • Collaborated with IT leadership to create a three-year roadmap prioritizing cloud-first solutions and AI-driven analytics. • Integrated digital tools to enhance customer experience and streamline supply chain operations. • Ensured scalability in the licensing strategy to support new store openings and e-commerce growth.
- Benchmarking and Negotiation Strategy: • Compared the retailer’s licensing costs and terms with those of leading global retailers. • Identified areas for cost reductions and negotiated added value in Microsoft’s offerings. • Developed a negotiation strategy to secure competitive pricing and flexible agreement terms.
- Agreement Renewal Support: • Presented a comprehensive, data-driven proposal to Microsoft, highlighting inefficiencies and optimization opportunities. • Negotiated significant discounts on Azure services and advanced data analytics tools. • Secured agreement terms that allowed the retailer to adjust licenses seasonally based on workforce needs.
Results
- Cost Savings: • Annual savings from optimized licensing: $8.2 million. • Additional savings through negotiated discounts: $5 million. • Total savings over the three-year term: $13.2 million.
- Operational Enhancements: • Reduced licensing costs by 30% while ensuring full compliance. • Streamlined licensing processes across hundreds of retail locations and warehouses. • Enhanced collaboration and productivity through optimized deployment of Microsoft tools.
- Strategic Outcomes: • Achieved a scalable EA aligned with the retailer’s digital transformation and growth objectives. • Positioned the company for seamless integration of AI-driven analytics and cloud-based solutions. • Strengthened governance and visibility into software usage and licensing costs.
Quote from the CIO:
“Redress Compliance’s expertise in managing our Microsoft EA renewal was invaluable. Their strategic approach ensured significant cost savings while aligning our licensing strategy with our business objectives. Their support has positioned us for continued growth and innovation.”
Key Results:
- Savings Achieved: $13.2 million over three years.
- Compliance Enhanced: Fully compliant with Microsoft licensing policies.
- Operational Efficiency: Optimized licensing portfolio with reduced redundancy.
- Strategic Alignment: Licensing strategy tailored to growth and digital transformation goals.
This case demonstrates Redress Compliance’s ability to deliver tailored and impactful solutions for large retailers, ensuring cost efficiency, compliance, and scalability in Microsoft EA renewals.
