Closing the Deal: Final Steps and Checks Before Signing Your Microsoft EA
Introduction – Why the Final Steps of Microsoft EA Negotiation Are Critical
The final stretch of a Microsoft Enterprise Agreement (EA) negotiation is high stakes.
In these last weeks (or days), you either secure every remaining concession or risk leaving value on the table. Read the Microsoft Enterprise Agreement (EA) Negotiation Guide.
Microsoft’s sales reps may urge you to hurry with “last chance” offers, but a savvy CIO or procurement manager knows better.
This endgame phase is exactly when last-minute EA negotiation tactics can yield extra discounts, freebies, or protections – if you ask the right questions and double-check everything.
Approaching the signature stage with a structured checklist before signing is your safety net. It ensures no detail slips through cracks and no promise goes undocumented. By being both strategic and skeptical at the very end, you prevent costly mistakes and surprises after the ink dries.
Let’s walk through the final steps in finalizing your Microsoft EA deal – from capturing final concessions to verifying the contract and setting up good governance for the future.
Final Steps in Closing Your Microsoft EA Deal
As you near the finish line of your EA negotiation, focus on these key areas. Each step below is designed to protect your interests and maximize value before you sign on the dotted line.
Final Concession Checklist
Even in the eleventh hour, you may have leverage to squeeze out a bit more from Microsoft.
Run through this final concession checklist to ensure you’re not missing any last-minute perks:
- Request price holds if there are delays in obtaining signatures. If internal hurdles push your signing past Microsoft’s deadline (such as quarter-end), request that Microsoft honor the negotiated pricing beyond that date. This way, a minor delay won’t erase your discounts or favorable terms.
- Secure customer success funding or training credits. Don’t hesitate to ask for extra value-adds. Microsoft often has funds for customer success or can provide training vouchers to encourage product adoption. Push for things like funded workshops, deployment support, or free training days to be included in your deal.
- Confirm that any free licenses, pilots, or extensions are written in. If Microsoft promised free pilot users, extended trial periods, or no-cost licenses for a limited time, get it in writing. Ensure the final contract or an amendment explicitly lists these freebies (with duration and quantity). Verbal agreements or assumptions won’t count once the EA is signed, so document every concession.
Prepare, How Microsoft Negotiates: Common Sales Tactics and How to Counter.
Contract Verification
Before you sign, perform a thorough contract review. This is your chance to catch any discrepancies or missing promises in the paperwork:
- Validate discounts, term length, and billing terms. Cross-check the contract to make sure it reflects all negotiated discounts on each product. Verify the EA term (e.g., 3 years) is correct, and review billing terms (payment schedule, currency, and any financing terms) for accuracy. There should be no surprises in how and when you’ll be charged.
- Ensure all verbal promises appear in amendments. If the Microsoft rep verbally agreed to something – special pricing, a service credit, a flexible clause – it must be documented. Check that every concession is either in the main agreement or in an official amendment or email attachment. If it’s not in writing attached to the contract, assume it doesn’t exist.
- Double-check SKU-level pricing for accuracy. Go line by line through the product SKU list. Confirm that each unit price matches what you negotiated (after discounts). This detailed scrub can catch clerical errors or sneaky fee additions. For example, if you negotiated a 15% discount on Office 365 E3 licenses, make sure the pricing for that SKU is exactly 15% lower than the list price. Accuracy here prevents overpaying for thousands of seats due to a small error.
Approval and Sign-Off Process
Internal coordination is key in the final phase.
A smooth approval process ensures you aren’t the bottleneck and that all stakeholders are comfortable with the deal:
- Create a one-page executive summary for the CFO/CIO. Boil down the EA’s key points – total cost, savings achieved vs. Microsoft’s initial offer, major changes (new products or reductions), and any risks or caveats. Busy executives appreciate a concise summary. This not only speeds up their understanding but also shows that you’ve done due diligence.
- Secure internal approvals before signing. Make sure all necessary leaders and departments have given the green light. This typically includes IT leadership (for technical fit), finance (for budget), procurement (for compliance with purchasing policies), and legal (for contract terms). Getting these approvals ahead of time prevents last-minute “red flags” when you’re ready to sign. No one should be surprised by the deal at the 11th hour.
- Use e-signature tools (e.g. DocuSign) for an efficient close. Don’t let paperwork logistics delay your deal. Set up the contract in an electronic signature platform to streamline the signing process. E-signatures also provide an audit trail and ensure all parties get copies immediately. This way, if the CIO is traveling or the CFO is remote, you can still execute the agreement quickly with a few clicks, avoiding any end-of-quarter crunch.
Avoiding Lapse in Coverage
One thing you want to avoid at all costs is a gap between your old EA and the new one.
A lapse could leave your organization unlicensed or without support, which is a nightmare scenario. Take these precautions to maintain continuous coverage:
- Never let the EA expire before the signature. Time your negotiation so the new agreement is signed and active before the current EA end date. If an EA expires without renewal, you could be out of compliance (and users might lose access to certain services). Even if Microsoft is pressuring you, remember that you hold the pen – aim to conclude negotiations with a few days to spare.
- Have contingency plans (e.g., a short extension letter) if needed. If negotiations are still ongoing as the deadline looms, ask Microsoft for a short-term extension of the existing EA. Microsoft can grant a 30- or 60-day extension via a simple letter or purchase order to cover you temporarily. This safety net keeps you legally covered and maintains support while final terms are hammered out. Knowing you have this option also reduces pressure to accept a subpar deal just to meet a date.
- Maintain service and support continuity. Ensure there’s no disruption to your Microsoft services or support during the transition. In practice, this means having that extension in place or, if absolutely needed, arranging an interim solution (like month-to-month licenses through a cloud reseller) so users aren’t affected. The goal is seamless continuity – your end-users shouldn’t even notice the contract changed, aside from maybe gaining new tools or features.
Post-Signature Communication
Congratulations, you’ve signed your Microsoft EA – but your work isn’t quite done.
Now it’s about communicating the deal’s details and ensuring smooth execution of its benefits and obligations:
- Share contract details with IT and finance teams. Provide a summary of the final EA to all relevant internal teams. IT needs to know what was purchased (and any new services or license types available) so they can deploy them effectively. Finance needs the final numbers – the committed spend, payment schedule, and how it fits into budgets. If departments will be charged back for licenses, clarify those allocations. When everyone understands the contract, there’s less confusion later.
- Communicate wins and usage changes. Make sure to highlight what you secured in the negotiation. Did you get additional discounts or free services? Let your teams know. For example, if you negotiated 100 free Azure developer hours or got upgraded security features, announce it. Additionally, inform users and department heads about any new licenses or capabilities that are now available to them. This not only helps with adoption (so those licenses are actually used) but also showcases the value that procurement achieves.
- Align stakeholders on new compliance obligations. If your new EA includes any special terms – like a requirement to track cloud consumption, a true-up/true-down clause, or audit provisions – assign responsibility to the appropriate people. Ensure your software asset management or compliance team is aware of what to monitor. Legal and security teams should note any new usage restrictions or data handling clauses. By clearly communicating these obligations, you’ll avoid breaches of contract or compliance surprises down the road.
Setting Up for the Next Renewal Cycle
Signing the deal is not the end of your Microsoft licensing journey – it’s just the beginning of the next cycle.
Smart organizations immediately turn their attention to ongoing Microsoft licensing governance to stay ready and retain leverage for the future:
- Establish quarterly reviews of license usage. Don’t wait until the next renewal is near to scrutinize usage. Set up a regular cadence (quarterly or biannually) to review how many licenses you’ve deployed vs. what you’re paying for. These health checks will uncover if you are over- or under-utilizing certain products. For instance, you might find 200 unused Dynamics 365 seats after two quarters – better to re-harvest or plan a reduction next time than to keep overpaying. Regular reviews keep waste in check and inform adjustment strategies long before the next EA negotiation.
- Add reminders for renewal prep 24 months ahead. It may sound far off now, but mark your calendar about two years before the new EA expires to kick off renewal planning. Microsoft EAs typically run three years; starting prep at least 18–24 months out ensures you have ample time for a thorough process (auditing usage, exploring alternatives, building negotiation leverage). A reminder at the 24-month mark can prompt budget discussions and team formation so that by 18-12 months out, you’re already in motion. The goal is to never find yourself scrambling with only a few weeks left in your EA.
- Treat governance as ongoing, not a one-off task. Managing a Microsoft EA is an ongoing discipline. Build a governance practice that involves IT, finance, procurement, and compliance working together throughout the EA term. This includes tracking consumption (e.g., Azure spend against commitments), staying up-to-date on Microsoft product and policy changes, and documenting any issues or needs that arise. By treating your EA as a living agreement, you’ll be in a strong position when the next negotiation comes. Think of it as keeping a “living playbook” – update it with lessons learned, maintain an internal Microsoft EA renewal checklist that evolves, and set the stage for an even better outcome next time.
FAQ – Finalizing Microsoft EA Deals
Q1: What’s the most common last-minute concession in EA deals?
It’s often an extra sweetener on price or services. In many cases, Microsoft will agree to a slightly deeper discount or throw in something like free training credits or additional cloud credits at the 11th hour to get the deal signed.
Q2: How do I confirm Microsoft’s verbal promises?
Get everything in writing. If a rep makes a verbal promise, insist it be included in the contract or documented in an official email or amendment. Unless it’s written down in the final agreement, consider that promise nonexistent.
Q3: Should I ever wait until the last day to sign?
Preferably not. Waiting until the last day is risky – it can lead to rushed reviews or even a gap in coverage if something goes wrong. Aim to finalize a few days before the deadline. Only push to the final day as a strategic move if you’re certain it secures a better concession, and even then, have a contingency (like an extension letter) in place.
Q4: Who should approve the final EA internally?
All key stakeholders should be in the loop. Typically, the CIO (or IT leadership) and the CFO (or finance leadership) provide the final approval, as they are responsible for the technology strategy and budget. However, legal and procurement must also review and approve the terms. In short, ensure IT, finance, legal, and procurement are all on board before an executive signs the contract.
Q5: What should I do immediately after signing?
Share the outcome and set up for success. Immediately circulate the key points of the new EA to your IT, finance, procurement, and compliance teams. Let them know about any new licenses, features, or obligations. Update your internal license inventories and tracking tools with the new agreement details. Finally, schedule your regular true-up reminders or usage review meetings so that you start managing the new EA proactively from day one. This way, your organization smoothly transitions into the new contract and lays the groundwork for a good run until the next renewal.
Read about our Microsoft EA Negotiation Service.
