The Microsoft Enterprise Agreement (EA) True-Up process involves:
- Annual Reporting: Organizations report any increased usage of Microsoft products and services beyond their initial commitment each year.
- Compliance: The True-Up ensures organizations comply with their Microsoft EA terms.
- Payment: After reporting, organizations must pay for the additional usage.
- Flexibility: It accommodates changes in product and service usage during the year.
- License Adjustment: The True-Up process allows license adjustments based on actual usage.
The Microsoft Enterprise Agreement (EA) True-Up process is critical to managing an EA effectively. Organizations of all sizes must ensure compliance, maintain accurate licensing records, and manage technology usage growth.
This guide will provide an in-depth look at the true-up process, its operation, and best practices for managing it efficiently.
The Microsoft Enterprise Agreement True-Up Process Overview
The Microsoft EA True-Up process involves the following:
- Annual Reporting: Organizations must report any increased usage of Microsoft products and services each year beyond their initial commitment.
- Compliance: Ensures that organizations remain compliant with their Microsoft EA terms.
- Payment: Organizations are required to pay for additional usage that is reported during the true-up.
- Flexibility: Accommodates changes in product and service usage throughout the year.
- License Adjustment: Allows adjustments to the number of licenses based on actual usage.
Understanding how these aspects come together is essential for effective Microsoft licensing management.
Learn About The Microsoft Enterprise Agreement
A Microsoft Enterprise Agreement (EA) is a three-year licensing program for medium and large-sized organizations. It provides cost savings, greater license management flexibility, and simplified purchasing.
The key components of the Microsoft EA include:
- Enterprise Products: Office Professional, Windows Operating System, Core/Enterprise Client Access License, and Office 365 subscriptions.
- Additional Products: Optional add-ons like Visio, Project, Windows Server, Exchange Server, etc.
- Online Services: Temporary use rights for various Microsoft cloud products.
Read about Microsoft EA benefits.
Microsoft Enterprise Agreement True-up
The true-up process ensures that any changes to software usage are accounted for annually. This allows for accurate license tracking and helps to avoid compliance issues.
Microsoft’s EA primarily targets organizations committed to using Microsoft products extensively. The true-up process enables these organizations to account for incremental usage throughout the year and maintain accurate license counts.
Types of Products in EA
- Enterprise Products: These must be purchased for all qualified users or devices in the organization. Once the EA term ends, they come with perpetual use rights.
- Additional Products: These products are available on an à la carte basis, allowing organizations to purchase them as needed. At the end of the agreement, they also come with perpetual use rights.
- Online Services: These services provide temporary use rights for the EA term. Unlike Enterprise Products, they do not grant perpetual licenses.
Read our article on Top15 strategies for optimizing your Microsoft EA.
Managing the Microsoft Enterprise Agreement True-Up Process
The true-up process is necessary to stay compliant with Microsoft EA requirements. Here is a deeper look at how to efficiently manage the true-up:
Accurate Inventory and Usage Tracking
Accurate counting of deployed instances of Microsoft products is essential. Organizations can use various methods to ensure they are ready for the true-up:
- Asset Management Systems: Some companies use advanced asset management tools to automate tracking software deployments and provide accurate inventory reports.
- Manual Tracking: Smaller organizations may rely on manually maintained records and spreadsheets.
Regardless of the method used, the goal is to submit an accurate true-up report to Microsoft and pay for any incremental usage at the end of the year.
Adding New Products to Your Microsoft Enterprise Agreement
The Microsoft EA allows for the addition of new products throughout its term. This process can be broken down as follows:
Adding New Products Not Previously Ordered
- Contact a Microsoft Account Manager or Software Advisor for additional Enterprise Products or Enterprise Online Services.
- Place an order in the month when the additional product is first used. For example, if a department begins using Microsoft Project in August, the order for that product should be placed by the end of the month.
Adding Licenses for Previously Ordered Products
- For Existing Products, the next true-up order must include Additional licenses for previously ordered products (excluding Online Services).
- For Online Services, Licenses must be ordered before use. There are some exceptions, but the general rule is to acquire the licenses before deploying services.
Timing Considerations for True-Up Reporting
The timing of the true-up report submission is crucial for maintaining compliance:
- For the first two years of the EA, true-up reports are due at least 30 days before the agreement’s anniversary.
- The report is due 30 days before the agreement expires in the third year.
Meeting these deadlines helps prevent any interruptions in licensing and ensures continued access to Microsoft products.
Assessing Changes in Your Organization
To complete an accurate true-up, organizations must assess the following:
- Growth in Staff or Devices: Have there been increases in workforce size or computing resources?
- Acquisitions or Mergers: Any changes in company structure that require additional licenses?
- Server Expansion: Any new servers, clusters, or changes to your infrastructure?
- Cloud Migration: Have you transitioned users between on-premises and cloud subscriptions?
- Virtualization and Disaster Recovery: Have any servers or desktops been virtualized or configured for disaster recovery?
Assessing these factors ensures that all changes are accounted for in the true-up report, avoiding potential compliance issues.
Enrollment True-Ups
Different types of enrollments under the Microsoft EA have varying true-up requirements.
Enterprise Enrollment True-up
- Focus: Covers Enterprise Products, Additional Products, and Enterprise Online Services.
- Reporting: Requires annual true-up reports and payments for any incremental usage.
- Product Additions: Allows new products to be added during the agreement term.
Server and Cloud Enrollment (SCE) True-up
- Focus: Aimed at servers and cloud services such as SQL Server, Windows Server, and System Center.
- Discounts: Offers larger discounts and benefits for organizations significantly committing to Microsoft’s cloud technologies.
Enrollment for Education Solutions (EES) True-up
- Designed For: Educational institutions, including universities and schools.
- Benefits: Provides Microsoft products and services at discounted rates for faculty and staff, with simplified reporting requirements.
Enrollment for Application Platform (EAP) True-up
- Focus: Application platforms like SQL Server, BizTalk Server, and SharePoint Server.
- Benefits: Offers cost savings for organizations that heavily use application platform technologies.
Enrollment for Core Infrastructure (ECI) True-up
- Focus: Designed for core infrastructure needs, including Windows Server and System Center.
- Discounts: Offers savings and benefits for those investing in core infrastructure products.
Best Practices for Managing Your Microsoft Enterprise Agreement
Use Automated Tools
Automated tools for tracking software deployments can greatly benefit organizations. They reduce the likelihood of errors and ensure the accuracy of true-up reports.
Engage with a Microsoft Licensing Expert
Working with a Microsoft licensing partner or consultant ensures that your organization stays compliant, maximizes its investment, and understands any new rules that may affect licensing.
Plan for Growth
To avoid surprises during true-ups, plan by forecasting potential staffing, infrastructure, or IT services changes. Regular reviews of expected growth will help with better budget planning.
Expert Advice on Microsoft Enterprise Agreement True-Up
Expert help with your Microsoft EA true-up can save time and money. Many organizations find that staying on top of usage, understanding licensing changes, and planning are challenging.
An experienced Microsoft licensing expert can assist in:
- Accurate Reporting: Ensuring that true-ups reflect actual usage and are submitted on time.
- Cost Reduction: Helping to identify opportunities for cost savings by optimizing license use and ensuring unnecessary licenses aren’t purchased.
- Audit Preparation: Preparing for and managing audits, which ensures compliance and minimizes disruptions.
Top 10 Tips for Customers Managing a Microsoft Enterprise Agreement True-Up
Navigating the Microsoft Enterprise Agreement (EA) True-Up process can be challenging, but it becomes manageable and predictable with the right practices in place.
Here are the top 10 pieces of advice for effectively managing a Microsoft EA True-Up.
1. Maintain Accurate Inventory
Keeping an accurate inventory of all deployed Microsoft products and services is essential. Track every software installation, update, and deployment throughout the organization.
- Usage Tracking: Track how often and by whom software is used. This will give you a complete picture of your licensing requirements.
- Up-to-date Records: To avoid discrepancies during the true-up, ensure your inventory records reflect the current status of your infrastructure.
2. Perform Regular Internal Audits
Internal audits help keep your license management under control. Schedule regular audits to cross-check actual deployments with licensing records.
- Spot Discrepancies Early: Identifying issues beforehand lets you fix potential non-compliance before the true-up.
- Stay Ahead of Compliance: Regular internal checks ensure you stay compliant, avoiding surprises when Microsoft reviews your license usage.
3. Leverage Available Tools and Resources
Microsoft offers a variety of tools to help you manage the true-up process effectively.
- Software Asset Management (SAM) Tools: Use SAM solutions to automate tracking and reporting.
- Licensing Advisors: Consulting licensing experts can clarify complex Microsoft licensing terms, saving you from potential compliance pitfalls.
4. Communicate with Your Microsoft Account Manager
Your Microsoft Account Manager or Software Advisor is a key resource throughout the true-up process.
- Guidance and Insights: They can provide crucial insights into changes in Microsoft licensing, upcoming pricing changes, and product updates that might impact your true-up.
- Issue Resolution: Account Managers are there to help solve any issues that arise, so keeping an open line of communication can prevent many headaches.
5. Plan for Organizational Changes
Changes like acquisitions, downsizing, or departmental restructuring will impact licensing needs. Make sure to plan for:
- Growth or Reduction: If you plan to hire more staff or reduce your workforce, adjust your license estimates accordingly.
- Infrastructure Changes: You should reflect any infrastructure changes (e.g., adopting new servers or expanding to cloud services).
6. Include Cloud Services in Your Inventory
As more companies transition to the cloud, including all cloud services in your license tracking is essential.
- Azure and Microsoft 365: Track the number of subscriptions, virtual machines, and other cloud-based resources.
- True-Up Consistency: Including cloud services ensures you remain consistent across both on-premises and cloud environments.
7. Engage a Third-Party Licensing Consultant
Sometimes, in-house expertise may not be enough to understand all the intricacies of Microsoft licensing. In such cases, a third-party consultant can help:
- Expert Analysis: These experts can review your licensing structure and usage to identify cost savings and avoid unnecessary purchases.
- Audit Preparation: Consultants can help prepare your organization for potential Microsoft audits, ensuring everything is ready and compliant.
8. Plan True-Up Activities Well in Advance
Procrastination in the true-up process can lead to last-minute problems and rushed decisions, which might result in increased costs or compliance issues.
- Quarterly Reviews: Instead of waiting until the end of the year, review licensing needs every quarter.
- Avoid Surprises: Planning ahead ensures there are no surprises when submitting the true-up report.
9. Monitor License Usage by Department
Different departments may have different licensing needs; tracking this at a departmental level can help improve efficiency.
- Identify Waste: Monitoring the department’s license use helps identify underused or unnecessary licenses, allowing you to reallocate or reduce licenses as needed.
- Budget Accountability: Department-level tracking also makes it easier to assign licensing costs directly, improving accountability.
10. Prepare for the True-Up Report Submission Deadline
True-up reports are due annually, either at the anniversary of your EA or at the end of the agreement. Make sure to:
- Gather Data Early: To ensure accuracy, collect inventory data well before the true-up deadline.
- Double-check: Verify your numbers to ensure all deployments have been accurately reported, avoiding compliance risks or additional penalties.
FAQs
What is the Microsoft Enterprise Agreement True-Up?
The Microsoft Enterprise Agreement (EA) True-Up is an annual process in which companies report any increase in the number of users, devices, or services since the initial signing of the EA. This ensures the organization is accurately licensed for all Microsoft products and services.
Why do I need to perform a True-Up?
Performing a True-Up is crucial to remaining compliant with your EA’s terms. It ensures you have the right number of licenses for any expanded usage and avoids non-compliance, which could lead to penalties during audits.
When should I perform the True-Up?
True-up activities are performed annually, either on the anniversary of your Enterprise Agreement or at the end of its term. Planning and submitting the report at least 30 days before these deadlines is important.
What products and services are covered by True-Up?
This includes all Microsoft products and services used within the scope of the Enterprise Agreement, including Microsoft 365, Azure, Office software, server licenses, and any other products your organization uses under the EA.
What happens if I don’t perform the True-Up?
Failure to perform a True-Up can result in non-compliance, putting your organization at risk of fines or penalties if it is audited. If your licenses are insufficient, this can also disrupt your access to Microsoft products and services.
How do I track my license usage accurately for the True-Up?
Use software asset management (SAM) tools to track your deployment of Microsoft products. These tools automate the counting process, ensuring an accurate inventory. Conducting regular internal audits also helps ensure your records are current.
Can I add new products during the True-Up process?
Yes, new products can be added during the True-Up. Contact your Microsoft Account Manager or Software Advisor to order a new product. Any new licenses required should be reported during the next True-Up cycle.
Can I remove licenses during the True-Up?
No, the True-Up process is focused on reporting and adding licenses to cover increased usage. If you need to reduce your number of licenses, this typically happens at renewal, where you can reassess your requirements.
How do organizational changes affect the True-Up?
Organizational changes like mergers, acquisitions, or expansions can affect your licensing needs. You must account for these changes during the True-Up to ensure the appropriate licenses cover all new users or devices.
Are cloud services like Azure included in the True-Up?
Yes, cloud services like Azure are included in the True-Up. Any additional Azure resources or subscriptions acquired throughout the year must be reported, and additional costs will be calculated accordingly.
How can I ensure my organization is ready for the True-Up?
To prepare for the True-Up, keep an accurate inventory of all software and services. Perform regular internal audits, stay in touch with your Microsoft Account Manager, and use automated tools to track usage. Planning will help avoid surprises during the True-Up.
What types of enrollment require True-Up activities?
Several types of enrollments require True-Up activities, including Enterprise Enrollment, Server and Cloud Enrollment (SCE), Enrollment for Education Solutions (EES), and Enrollment for Core Infrastructure (ECI). Each type has specific requirements for reporting increased usage.
What is the cost implication of a True-Up?
The cost of a True-Up is based on the number of additional licenses required to cover increased usage. These additional licenses are usually priced at the same rate as agreed in your original EA, helping to maintain budget predictability.
