Case Study: Microsoft EA Renewal for a Leading US Telecom Operator
Challenge
One of the largest telecommunications operators in the United States, employing over 300,000 people and serving millions of customers nationwide, engaged Redress Compliance to assist with its Microsoft Enterprise Agreement (EA) renewal. The telco’s IT ecosystem powered critical operations, including network management, customer service platforms, and internal collaboration systems. Facing the expiration of its EA, the company sought to:
- Conduct a detailed analysis of Microsoft product usage across its extensive operations.
- Identify opportunities to optimize license allocations and eliminate inefficiencies.
- Develop a roadmap that aligns with its digital transformation strategy, including 5G deployment and AI adoption.
- Benchmark costs and terms against industry peers to ensure competitive pricing.
- Negotiate a scalable and cost-effective agreement that supports its innovation and growth objectives.
Given the company’s size and the complexity of its IT requirements, the renewal process required a strategic and data-driven approach.
The Process
- Deployment and Usage Analysis: • Conducted an in-depth review of Microsoft product deployments, including Azure, Office 365, Dynamics 365, and Power BI. • Mapped licenses to actual usage patterns across multiple business units and geographic locations. • Identified underutilized licenses and areas of redundancy in the existing agreement.
- Optimization of Licensing Portfolio: • Reallocated licenses to better match departmental and project-specific needs. • Transitioned select teams to role-based licensing to improve cost efficiency. • Recommended retiring legacy systems that no longer supported the company’s strategic goals.
- Strategic Roadmap Development: • Partnered with IT leadership to design a three-year roadmap prioritizing cloud adoption, advanced analytics, and AI-driven solutions. • Integrated plans for 5G network expansion and enhanced customer service capabilities. • Ensured scalability in the licensing strategy to support rapid innovation and market expansion.
- Benchmarking and Negotiation Strategy: • Compared licensing costs and agreement terms with other leading telecom operators globally. • Identified areas for cost reductions and opportunities for additional value through bundled services. • Developed a robust negotiation strategy to secure volume-based discounts and flexible terms.
- Agreement Renewal Support: • Presented a data-backed proposal to Microsoft, highlighting inefficiencies in the existing agreement and opportunities for improvement. • Negotiated significant discounts on Azure and other cloud-based services. • Secured flexible terms that allowed the telco to adjust licensing volumes based on business demand.
Results
- Cost Savings: • Annual savings from license optimization: $10 million. • Additional savings through negotiated discounts: $7.5 million. • Total savings achieved over the three-year term: $17.5 million.
- Operational Enhancements: • Reduced licensing costs by 25% while maintaining compliance. • Streamlined license management processes across multiple business units. • Enhanced collaboration and productivity with better alignment of software tools.
- Strategic Outcomes: • Achieved a flexible and scalable EA aligned with the company’s growth and innovation goals. • Positioned the company for seamless implementation of advanced technologies, including AI and IoT. • Strengthened governance and visibility into software usage and costs.
Quote from the CIO:
“Redress Compliance delivered outstanding results by optimizing our Microsoft EA and ensuring a flexible agreement that supports our growth and innovation journey. Their expertise was invaluable in securing significant savings and aligning our IT strategy with our business objectives.”
Key Results:
- Savings Achieved: $17.5 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 support 5G, AI, and digital transformation initiatives.
This case demonstrates Redress Compliance’s ability to deliver tailored and impactful solutions for large telecom operators, ensuring cost efficiency, compliance, and alignment with strategic business goals.
