IT Professional Services
Chicago-based, 10,000+ employees, clients across the US. Project-driven workforce.
Microsoft Estate
Office 365, Azure, Dynamics 365. Complex EA spanning multiple business units.
Deployment Analysis
Underutilised licences, over-allocation, hybrid cloud misalignment identified.
$4.2M Savings
$2.7M from optimisation, $1.5M from negotiated discounts over 3-year term.
The Challenge
A major EA renewal with significant over-provisioning
A leading IT professional services company headquartered in Chicago, with over 10,000 employees and clients across the United States, engaged Redress Compliance to assist with its Microsoft Enterprise Agreement (EA) renewal. The company’s IT infrastructure supported diverse operations including client project management, software development, and cloud-based services. For a strategic overview of what EAs involve, see our guide on what is a Microsoft Enterprise Agreement.
With an upcoming EA renewal representing a significant recurring software expenditure, the company needed to analyse deployments, optimise licence allocations, develop a roadmap for cloud adoption, benchmark against industry peers, and negotiate flexible terms aligned with its dynamic, project-driven business model.
The Process
Five-phase engagement from analysis to negotiation
Deployment Analysis
Conducted a comprehensive review of the company’s entire Microsoft estate. Reviewed product usage across Office 365, Azure, and Dynamics 365. Identified underutilised and over-allocated licences by mapping deployments against actual usage. Evaluated hybrid and cloud infrastructure to align with future business needs. Analysed usage patterns by role, project type, and business unit to build a complete picture of how Microsoft products were consumed across the organisation.
Optimisation
Identified substantial cost reduction opportunities aligned with the services business model. Consolidated licences across departments to reduce duplication and optimise costs. Transitioned specific teams to role-based licensing tailored to their operational requirements. Retired unused or redundant Microsoft products to streamline the portfolio. Quantified licence optimisation savings at $2.7 million annually. For our full optimisation methodology, see our Microsoft EA optimisation service.
Free Microsoft Licensing Assessment
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Request Your Free Assessment →Roadmap Development
Collaborated with IT leadership to define a three-year technology roadmap. Defined licensing needs aligned with growth trajectory. Prioritised scalable solutions to support client projects and internal initiatives. Integrated future cloud migration plans to ensure flexibility and efficiency. Aligned licensing commitments with projected headcount and project pipeline.
Benchmarking
Leveraged Redress Compliance’s proprietary benchmark database from 500+ enterprise deals for competitive positioning. Compared licensing costs and terms with similar IT service providers in the industry. Identified areas where the company could secure better pricing and terms. Built evidence-based pricing targets for every product line in the EA.
Negotiation Strategy
Developed and executed a data-driven negotiation plan. Used insights from analysis and optimisation to develop a robust negotiation strategy. Secured significant discounts on Azure and Office 365 licences. Negotiated terms allowing the company to adjust licensing volumes periodically to match business demand. Achieved $1.5 million in additional savings through negotiated discounts beyond optimisation. For more on our negotiation approach, see our Microsoft contract negotiation service.
Microsoft EA Renewal Approaching?
We have deep benchmarking data from 500+ enterprise deals and specialists who understand Microsoft’s pricing, discounting, and negotiation tactics. See our Microsoft audit defence service for compliance protection.
Microsoft EA Advisory →The Results
$4.2 million in savings with full compliance
| Metric | Detail |
|---|---|
| Annual Savings: Licence Optimisation | $2,700,000 per year |
| Additional Savings: Negotiated Discounts | $1,500,000 over 3 years |
| Total Savings (3-Year Term) | $4,200,000 |
| Overall Cost Reduction | 22% reduction in licensing costs |
| Compliance Status | Fully compliant with all Microsoft policies |
| Operational Efficiency | Streamlined licensing management across all business units |
| Cloud Readiness | Advanced Microsoft solutions adopted for client delivery |
| Governance | Improved visibility into usage and costs across divisions |
Before Redress
- Significant underutilised licences across business units
- Over-allocated E5 suites for roles not requiring full stack
- No role-based licensing strategy
- Hybrid cloud infrastructure misaligned with EA terms
- No industry benchmarking for pricing targets
- Inflexible EA terms mismatched to project-driven model
After Redress
- $4.2 million in verified savings over 3-year term
- Role-based licensing aligned to consultants, developers, corporate staff
- 22% overall EA cost reduction
- Cloud roadmap integrated with licensing commitments
- Evidence-based pricing securing best-in-class terms
- Flexible volume adjustment terms for project cycles
Redress Compliance’s expertise was instrumental in our Microsoft EA renewal. Their strategic approach helped us reduce costs, optimize our licensing, and secure an agreement that supports our long-term goals. Their insights were invaluable.— CIO, IT Professional Services Company, Chicago
Key Takeaways
Microsoft EA renewal lessons for IT services companies
Project-driven workforces need role-based licensing, not uniform E5.
IT services companies with consultants, developers, and project managers have fundamentally different needs per role. Transitioning from blanket E5 allocations to role-based licensing tailored to operational requirements typically delivers the largest single savings category in EA renewals for services firms.
Deployment analysis reveals 20 to 30% over-provisioning in most EAs.
Mapping actual usage against licences consistently uncovers significant waste. Underutilised licences, dormant accounts, and duplicate allocations across departments are the norm in large, decentralised organisations. For more on EA structures, read our what is a Microsoft Enterprise Agreement guide.
Benchmarking transforms negotiation from guesswork to evidence.
Microsoft’s pricing is not transparent. Without comparison data from peer organisations, companies negotiate blind. Redress Compliance’s 500+ deal benchmark database provides evidence-based pricing targets for every product line, ensuring clients secure terms that reflect market reality rather than Microsoft’s initial proposal.
Flexible volume adjustment terms are essential for services firms.
Standard EA terms assume stable headcounts. IT services companies with project-driven demand need provisions that allow periodic licence volume adjustments as engagements start and finish. Negotiating these terms proactively prevents the 20 to 30% over-provisioning that services firms otherwise absorb.
Optimise first, negotiate second, every time.
The $2.7 million in annual optimisation savings reduced the baseline before negotiation even began. The subsequent $1.5 million in negotiated discounts was applied against the already-reduced number. Optimising first ensures negotiated percentages deliver real savings rather than discounts off an inflated starting point. See our Microsoft advisory services for our full approach.