In Microsoft Enterprise Agreement negotiations:
- Volume Licensing: For large organizations (500+ users/devices) with flexible licensing and payment options.
- Assess your needs: Know what products, licenses, and budget you require.
- Research Terms: Understand agreement clauses and market rates.
- Negotiate Broadly: Beyond price, consider services, payment terms, and duration.
- Strategy: Use negotiation tactics like ‘good cop/bad cop’.
- Expert Advice: Seek guidance from experienced advisors.
- Be Prepared to Walk Away: If terms are unfavorable, consider alternatives.
- Trends – Catch up on our latest MS EA negotiation trends.
Negotiating a Microsoft Enterprise Agreement (EA) is a high-stakes endeavor for any large organization. This guide provides CIOs and IT procurement professionals with a comprehensive roadmap to secure the best possible deal.
We cover everything from understanding EA fundamentals to crafting renewal strategies, optimizing licenses, benchmarking prices, managing commitments, cloud transitions, multi-year planning, and compliance. Each section concludes with actionable recommendations to help you drive a successful EA negotiation.
Microsoft Enterprise Agreement Negotiations
Microsoft’s Enterprise Agreement is a three-year volume licensing contract tailored for organizations with 500 or more users or devices. It bundles software and cloud services under one agreement, offering streamlined management and predictable costs.
Purpose and Scope:
The EA is designed to cover an enterprise’s entire Microsoft portfolio, including Windows, Office/Microsoft 365, server products, Azure services, and more, on a standardized contract.
Typical Structure:
An EA enrollment locks in pricing for three years, with payments spread in equal annual installments rather than upfront.
This structure provides budget stability: even if Microsoft raises public prices, EA customers continue to pay the agreed rate for their term. Key Entitlements: Every EA includes Software Assurance (SA), granting rights and benefits such as upgrade access to the latest versions, training vouchers, planning services, support incidents, and license mobility for cloud use.
These entitlements add significant value by ensuring the organization can fully utilize the software and receive support and training. The EA’s comprehensive coverage and SA benefits help organizations maintain a standardized technology platform with centralized license management and simplified compliance tracking.
In summary, the EA’s value lies in volume-discount pricing, broad coverage of Microsoft products, and added benefits that go beyond basic licensing.
Recommendations:
- Evaluate EA Fit: Confirm your organization meets the size threshold (500+ users) and has broad software needs suited to an EA’s all-up coverage.
- Leverage SA Benefits: Inventory all Software Assurance entitlements (training days, support calls, and upgrade rights) and plan to use them. Alternatively, use unused benefits as negotiation leverage for extra discounts.
- Centralized License Management: Use the EA to consolidate Microsoft spend under one agreement for easier tracking. Assign a licensing owner to monitor usage vs. entitlements throughout the term.
- Plan the EA Scope: Decide which products to include. Aim for enterprise-wide coverage of core products to maximize volume discounts, while considering carve-outs (if any) for niche software that may be cheaper through alternative channels.
Read our Microsoft EA Negotiation Guide for 2025.
Key Components of an EA
| Component | Description |
|---|---|
| Enterprise-wide products | Windows, Office, and Client Access Licenses (CALs). |
| Additional products | Server software or specialized tools as needed. |
| Online services | Microsoft 365, Azure, Power Platform, and Dynamics subscriptions. |
Renewal Strategy: Timeline, Planning, and Executive Alignment
Renewing a Microsoft EA requires a proactive strategy and timing. Start Early: Begin internal renewal preparations 12 to 18 months before the EA expiration. Early planning gives you time to assess current usage, define future needs, and avoid last-minute pressure.
In practice, kicking off serious renewal work a year in advance lets you set negotiation objectives and iterate through Microsoft’s proposals and counteroffers deliberately.
Microsoft’s Fiscal Calendar Influence:
Be mindful of Microsoft’s fiscal year, which ends on June 30. The final quarter (Apr–Jun) is when Microsoft is eager to close deals. Aligning your negotiation with Microsoft’s year-end can increase your leverage – the sales team will be motivated to meet their quotas. It may offer better discounts or concessions to book your renewal before June 30.
However, don’t let their deadlines rush you; if your EA expires off-cycle, you might negotiate a short extension to sync with a quarter-end for leverage. Internal Planning and Team Setup: Form a cross-functional negotiation team with IT, procurement, finance, and legal stakeholders at the outset.
Hold internal meetings to establish a unified stance on key points (budget limits, product needs, must-have terms). Executive Alignment: Ensure the CIO, CFO, and other executives are on board with the negotiation strategy and messaging.
Microsoft’s reps may attempt a “divide and conquer” by lobbying different stakeholders or reaching out to higher executives with upsell pitches. A unified leadership front prevents mixed messages. Identify a lead negotiator (often someone in procurement or licensing) to be the primary interface to Microsoft, so communications stay coordinated.
Timeline Management:
Develop a negotiation timeline with milestones: complete internal usage analysis by T-minus 9 months, set initial requirements by 6 months out, and engage Microsoft with your proposal by 4-5 months out, and so on. Build in time for iterative back-and-forth offers. Having this timeline keeps negotiations on track and avoids panic as the deadline nears.
Microsoft Engagement:
Signal to Microsoft that you intend to negotiate rigorously early on. By starting discussions months in advance, you can set the agenda rather than reacting to a last-minute quote. This also allows you to time the final agreement signing when it’s most advantageous (for example, at the end of Microsoft’s quarter or fiscal year for maximum sales pressure).
Recommendations:
- Initiate Renewal Project (12+ Months Out): Assemble your core team and start planning for renewal at least a year in advance. Set a detailed schedule for analysis, approvals, and negotiation milestones.
- Executive Briefings: Align your C-suite and budget owners on objectives and walk them through negotiation tactics. Ensure no one independently commits to terms with Microsoft without the team’s knowledge.
- Leverage Microsoft’s Calendar: Aim to conclude negotiations in Microsoft’s Q4 (or another quarter-end) when possible. Use the seller’s urgency to your advantage, but don’t sacrifice a thorough review for their timeline.
- Maintain a United Front: Channel all communication with Microsoft through a designated lead negotiator. Internally, we agree that no deal is final until the team reviews it, preventing Microsoft from exploiting any internal splits.
Read Microsoft EA Negotiations: Avoiding Common Mistakes.
BLicensing Optimization: Inventory, SKU Rationalization, and Usage Alignment
One of the most powerful ways to save money on an EA is to right-size what you buy. Before you sit at the negotiation table, conduct a comprehensive inventory of your current Microsoft licenses and actual usage. Identify any “shelfware” – licenses purchased but not being used.
Common examples include unused Office 365 seats, or licenses assigned to departed employees or defunct projects. Remove or reallocate these before renewal so they don’t carry into the new agreement. Because Microsoft’s standard EA doesn’t allow reducing license counts mid-term, it’s crucial to start the renewal with an accurate, lean baseline.
SKU Rationalization:
Match each user or workload to the appropriate licensing level. Not every employee needs a top-tier SKU. For instance, if you currently provisioned Microsoft 365 E5 for everyone, determine how many users use the E5-only features. You might find a large subset can be downgraded to E3 or even the F-series (Frontline) licenses without impacting productivity.
Similarly, for server and infrastructure licenses, review if all deployed editions are necessary or if cheaper editions would suffice for certain purposes (e.g., Standard vs. Datacenter editions, or using read-only replicas on lower-cost licenses). Aligning products with actual needs often yields substantial savings over a three-year term.
License Reallocation:
Where possible, reassign underused licenses to where they are needed before buying new ones. For example, if one department over-provisioned Visio or Project seats and another needs more, shift those licenses internally. Utilize Current Entitlements: Check if your existing license bundle already includes features that you are about to purchase separately. Microsoft often upsells add-on products that duplicate capabilities you might already have.
For instance, if you own Microsoft 365 E3, it includes OneDrive and SharePoint – there’s no need to pay extra for a third-party file-sharing service for most users. Or you might already have Windows Server licenses with virtualization rights (via Software Assurance) that can cover new virtual machines (VMs) without requiring additional licenses. By fully exploiting what you’ve already paid for, you can avoid unnecessary purchases.
Optimize for Future State:
If you plan to migrate certain workloads to Azure or decommission legacy systems, factor that in so you don’t over-license on-premises software that will be phased out. Conversely, if a major expansion (such as new offices or acquisitions) is expected, consider how those users will be licensed, but avoid preemptively overbuying “just in case” (you can always true up later as needed).
Recommendations:
Maintain License Records: Implement a Software Asset Management (SAM) tool or process to continuously track license allocation and usage. Keeping clean records will simplify optimization at every renewal and reduce the risk of over-licensing.
They can optimize costs while ensuring the new EA aligns with organizational needs.
Audit Current Usage:
Perform a thorough internal audit of all Microsoft licenses and their utilization. Identify unused or underused licenses (e.g., inactive Office 365 accounts, surplus server CALs) and list them for potential removal at renewal.
Eliminate Shelfware:
Plan to true-down at renewal – do not renew licenses for software or services that are not in active use. Every redundant license dropped is an immediate cost savings.
Tier Your User Profiles:
Categorize users by needs (e.g., basic, standard, power user) and assign the least-cost license SKU that meets each profile. Downgrade high-end SKUs where advanced features aren’t needed.
Leverage What You Own:
Before adding new products to your EA, check if similar functionality is already available in your current entitlements. Use Software Assurance benefits, such as license mobility to the cloud or virtualization rights, to cover new deployments when possible, instead of purchasing new licenses.
Read Microsoft Enterprise Agreement – How to renew in four steps.
Price Benchmarking: Discount Tiers and Market Data for Negotiation
Understanding how Microsoft pricing works and what discounts are attainable is key to negotiating confidently. Volume Discount Levels: Microsoft EAs have built-in discount tiers based on the number of licenses or users. There are traditionally four program levels – A, B, C, and D – with Level A starting at 500 seats and Level D for 15,000 seatsor more.
Higher levels yield better upfront pricing (for example, a 3,000-user organization falls into Level B and gets deeper baseline discounts than a 600-user Level A company). Beyond these published volume discounts, Microsoft can approve additional deal-specific discounts during negotiations, especially for large commitments.
Typical Discount Ranges: It’s common to achieve significant off-list discounts in an EA. Generally, expect savings of 15% at the low end, up to 40 %+ for the largest enterprises and most aggressive deals.
Core products, such as Microsoft 365 or Windows/Office licenses, may see discounts of 20-30% for mid-sized enterprises, while very large global customers can push toward the upper bounds. Niche or strategic products, such as Power BI, Security add-ons, or new offerings like AI and cognitive services, might be discounted even more steeply initially as Microsoft tries to drive adoption. Use these ranges as a benchmark to evaluate Microsoft’s quote.
If the initial offer is only 5% off the list and you know peers of similar size got 20%, you have grounds to demand better. External Benchmarking Sources: Leverage all available sources of pricing insight. Industry analysts, licensing consultants, or peer networking groups can provide data on what similar organizations are paying.
Some consultancies maintain proprietary databases of software deal benchmarks – engaging them can arm you with credible figures. Additionally, consider getting quotes via multiple Microsoft resellers or partners.
While Microsoft ultimately sets the pricing, different licensing solution providers may offer flexibility or additional incentives (e.g., one partner might provide an extra 1-2% reseller discount or a services credit). This effectively gives you a competitive benchmark without having to switch vendors.
Microsoft’s Pricing Desk (“Business Desk”):
Internally, your Microsoft sales representative often needs to get big discounts approved by a pricing committee, known as the Business Desk. Make your case with data, showing that your requested discount aligns with what the market bears or with what a competitor like AWS or Google might offer for comparable services, which can justify the concession. Be prepared to never accept the first offer; it is almost always a starting point, not the final number.
Recommendations:
Document All Agreements: If Microsoft promises a special discount or concession, get it in writing, either in the contract or via email, at a minimum. Verbal assurances about “we’ll match that price later” must be formalized to count.
Research Benchmark Rates: Before pricing discussions, gather information on the typical discount percentages achieved by companies of a similar size and industry. Use available reports or advisors to set target discount levels for each product in your e-commerce account (EA).
Aim High in Negotiations: Set an aggressive discount ask (within reason of benchmarks), knowing Microsoft will likely counter. For example, if you want a 25% discount, ask for 30% with justification. You often only get what you ask for.
Get Multiple Quotes: Even if you intend to stay with the same reseller, solicit a proposal from at least one other Microsoft partner for your renewal. Use any differences as leverage with Microsoft; they’ll see that you’re price shopping, which will pressure them to give their best offer.
Highlight Your Value: Remind Microsoft of your total account value and future potential, including growth and referenceability, to strengthen your case for a larger discount. A well-researched business case showing why you merit better pricing can help the Microsoft account team advocate on your behalf to the Business Desk.
Commitment Strategy: Growth Planning, True-Ups, and Avoiding Overcommitment
Microsoft EAs are commitment-based agreements – you commit to a certain quantity of licenses for the 3-year term, with the flexibility to add more as needed. Crafting the right commitment strategy means balancing current needs with future growth, without overpaying.
Plan for Growth, but Don’t Overcommit:
Assess your organization’s growth projections (headcount, new projects, expansions) for the EA term. It’s wise to include expected growth in your initial license counts if you’re fairly certain it will happen, and perhaps negotiate a bulk discount on those future licenses upfront. However, be cautious: any licenses you commit to in the EA become a yearly charge, even if they are not used.
Overcommitting — purchasing far more licenses than you need “just in case” — leads to wasted budget and shelfware. One strategy is to commit to the minimum baseline you need on Day 1, then use the EA’s annual True-Up process to add licenses each year if your usage grows. This way, you pay for additional users or devices when they join, not in advance.
Understanding True-Ups:
The EA True-Up is an annual reconciliation where you report any usage that exceeds your initial licensed quantities. If you added 100 new Office 365 users during the year, at the anniversary, you report them and pay the prorated cost (often the full year’s price for those additions, since Microsoft assumes they were in use all year).
True-ups allow you to incrementally grow your license count. Just budget for them – some organizations treat the True-Up as a “4th payment” in the year, earmarking funds for likely growth.
True-Forward Concept:
In traditional EAs, if your usage decreases, you generally cannot reduce your count until the end of the 3-year term, except at renewal. Some newer subscription models (and those of other vendors, like Cisco) use a “true-forward” model, where you only pay for increased consumption in the future, not retroactively. Microsoft’s EA for on-premises and most cloud subscriptions still uses backward-looking true-ups.
However, if you move to newer Microsoft commerce models or cloud agreements, be aware that the billing may shift to a pay-as-you-go model (which is inherently pay-forward). For now, assume that any growth will incur a back-billed charge at the anniversary.
Avoid Overcommitment Pitfalls:
Microsoft may push for a big upfront commitment (for example, a large Azure financial commitment or an enterprise-wide adoption of a new product) by offering extra discount incentives. Only commit to what you realistically can consume.
Overcommitting to an Azure spend, for instance, can lead to scrambling to use the budget or losing funds at the end of the term if not used. It’s better to slightly under-commit and then exceed it (Microsoft will gladly take more money later) than to be locked into payments for capacity you don’t use.
True-Up Timing and Strategy:
Schedule an internal true-up review a couple of months before each anniversary. This allows you to validate the additional licenses you need to report and possibly remove any unused ones just before they are counted. Also, negotiate price holds so that any true-up additions are priced at the original agreement rate; this is typically standard for the same products.
If you plan a major ramp-up (e.g., onboarding a new subsidiary next year), you could negotiate a staged commitment – for example, commit to an extra 1,000 licenses starting in year 2 rather than paying for them in year 1. Microsoft can structure phased enrollments if requested, aligning payments with usage.
Recommendations:
- Size the Initial Order Wisely: Set your EA baseline license counts to cover current needs and near-certain growth. Avoid the temptation to pad the numbers too high. It’s easier to add something later than to remove it.
- Use True-Ups for Flexibility: Plan to handle uncertain user growth via annual true-ups. Keep a contingency budget to cover new licenses you’ll add each year, rather than buying them all upfront.
- Consider Subscription EA for Downward Flex: If you anticipate potential downsizing or want the option to reduce licenses, evaluate the Microsoft Enterprise Subscription Agreement variant. It allows decreasing counts at renewal (though not mid-term), and you won’t own the licenses, which might be acceptable for flexibility.
- Negotiate Price Protections: Ensure your EA includes provisions that any added licenses (true-ups) during the term honor the initial unit pricing. Also, try to lock in any special discounts so they apply to growth quantities as well.
- Review Commitments Annually: Before each anniversary, review usage to decide what to true-up. If certain licenses are no longer needed, see if you can reassign them within the organization to avoid buying new ones. Stay agile each year rather than buying everything upfront.
Read the Strategic Procurement Toolkit for Microsoft Negotiations
Cloud Considerations: Azure, Microsoft 365, and Transitioning from Legacy Licensing
In recent years, Microsoft’s focus has shifted heavily to cloud services, which directly impacts EA negotiations.
Azure Commitments:
If your organization uses Azure or plans to use it, a Microsoft EA often includes an Azure monetary commitment, such as committing to spend $X on Azure over three years. Microsoft may offer incentives, such as additional Azure credits or improved discount rates, if you commit to a higher upfront Azure spend.
Carefully determine a realistic Azure consumption forecast – don’t overcommit to an Azure spend you cannot meet. Unlike licenses, Azure is a pay-as-you-go service; overcommitting means you might leave money unspent or be forced to use it on projects. If you prefer flexibility, you can also purchase Azure through a separate Cloud Solution Provider (CSP) program instead of the EA, which may help you avoid a fixed commitment.
Use the possibility of moving Azure to CSP as a negotiation lever: Microsoft would prefer to keep your cloud business in the EA, so they might improve EA terms to dissuade you from using alternative channels.
Microsoft 365 Suite Evolution:
Microsoft’s cloud productivity suite (Office 365, now part of Microsoft 365) continually evolves with new features and add-ons. Microsoft will offer the latest and greatest bundles, such as Microsoft 365 E5, which includes advanced security, analytics, and voice features, during your EA negotiation.
Evaluate these carefully – do they align with your IT roadmap? If you plan to upgrade some users to E5 for the additional security and compliance tools, negotiate this as part of the EA and seek promotional pricing.
Microsoft often provides steep first-term discounts on E5 or other new cloud products to drive adoption. On the other hand, if you’re fine with E3 or a mix of plans, resist a blanket upsell. You can tell Microsoft you’ll “consider E5 for a subset of users” in exchange for concessions, without committing everyone.
Moving from Legacy to the Cloud:
Many enterprises are transitioning from on-premises software to cloud services. In negotiations, account for this transition so you don’t end up paying twice. For example, if you still have some Office Professional Plus perpetual licenses with Software Assurance, you effectively have rights to Office 365 ProPlus.
Coordinate the move so that when you switch users to Microsoft 365, you cancel the redundant on-premises licenses at renewal. Ask Microsoft about bridge licenses or transition SKUs that ease the move from legacy to cloud. Microsoft sometimes offers “from SA” pricing for customers moving to cloud subscriptions, which credits your prior investment.
Hybrid Use Benefits:
Ensure you utilize benefits like Azure Hybrid Benefit, which allows you to use your on-premises Windows or SQL Server licenses in Azure VMs at a lower cloud cost. This can significantly reduce your Azure spend if you have existing licenses with Software Assurance (SA). Such considerations should inform whether you continue to buy on-premises vs. shifting to cloud subscriptions.
New Commerce and Program Changes:
Microsoft is evolving its licensing programs, including the new Microsoft Customer Agreement for direct cloud purchases. Stay informed about how these changes might affect your EA. For instance, some mid-market customers are being directed from EAs to CSP or MCA models. While large enterprises will still use EAs, any mandated program change during or after your term (like a move to an “MCA-E” structure) should be planned for.
You may negotiate language that states if a program changes, you will receive equivalent pricing and benefits. Cloud Solution Provider (CSP) Option: Even if you maintain an EA, you might choose CSP for certain subscriptions, especially for smaller subsidiaries or dev/test accounts, due to its month-to-month flexibility.
Mention to Microsoft that you’re considering CSP for parts of your spend – this can pressure them to make the EA deal more attractive to keep everything under the EA. Use whatever alternatives you have as bargaining chips.
Recommendations:
Stay Flexible: Ensure your agreement allows you to add cloud services as needed. Keep an eye on Microsoft licensing announcements – if new cloud offerings or program changes (like MCA) arise, engage with Microsoft early on to determine how they will be handled under your EA, so you’re not caught off guard.
Define Your Cloud Roadmap: Outline which workloads will move to Azure or Microsoft 365 over the EA term. Use this to negotiate the right cloud services and avoid paying for overlapping on-premises and cloud licenses.
Negotiate Azure on Your Terms: If you commit to Azure spending in the EA, keep it attainable. Push for Azure credits or discounted rates in exchange. If unsure, keep Azure separate via CSP to maintain flexibility, and let Microsoft know you have that option.
Get Cloud Transition Discounts: Ask about transition SKUs for moving from legacy licenses to cloud subscriptions. Leverage any existing investments (like Windows or Office licenses) to reduce the cost of equivalent cloud services (via Hybrid Benefits or “from SA” pricing).
Select the Right M365 Plan Mix: Don’t agree to an organization-wide upgrade to expensive plans without a business case. Instead, tailor the plan mix (E3 vs E5, etc.) to user needs and seek pilot or trial terms for new services (e.g., “include Teams Phone for 6 months free for evaluation”).
Multi-Year Agreement Planning: Locking Pricing, Inflation Clauses, and Forecasting
An EA’s three-year term requires planning for the entire duration and beyond. Price Lock and Inflation Protection: One big benefit of the EA is price protection for products you’ve committed to – your per-unit pricing is fixed for three years.
In times of rising software prices, this shields you from inflation on those licenses. However, note that new products you add mid-term that weren’t originally in your EA might come at the then-current price (unless negotiated otherwise). To mitigate future cost uncertainty, negotiate caps or extended price holds.
For instance, you might ask that the discounts you achieved on this EA will carry over into the next renewal. (Microsoft may not formally guarantee renewal pricing, but raising it sets the expectation.) Some customers request an extended term or price lock for an optional fourth year, which can be useful if your procurement cycles are uncertain. Microsoft sometimes allows a year-to-year extension at the same pricing for a limited period.
Also, consider currency implications: if your EA is in a foreign currency. That currency has experienced fluctuations. Discuss currency protection or pricing pegging with Microsoft to avoid a budget hit from exchange rate changes. Forecast Usage and Changes: Predict as much as you can about the next three years. Are you planning a major Windows 11 upgrade? A data center consolidation? M&A activity that will add users?
Document these to both size your initial needs and to possibly secure conditional terms. For example, if you expect to add 1,000 users in year 2 due to an acquisition, negotiate the ability to add them at the same discount or a pre-agreed-upon price.
If you expect to drop certain usage (say you plan to retire on-prem SharePoint and fully move to SharePoint Online by year 2), ensure you don’t end up paying for the on-prem licenses beyond that point (perhaps by structuring that component of the deal as a 2-year subscription inside the 3-year EA, if feasible).
Multi-Year Budgeting:
Work with Finance to project the EA costs across all three years, including any planned true-ups. Typically, Year 1 spend is the highest if you are buying new things, with Years 2 and 3 being repeats unless you add. Some organizations choose to pay for the entire 3-year EA upfront to use capital expenditure or to protect against budget changes.
If this is of interest, Microsoft can accommodate it. (It doesn’t usually change the price, but it might give you a slight negotiating edge or incentive.)
Inflation Clauses:
Microsoft has historically not applied inflation-based price increases during an EA term (prices are fixed). However, in high-inflation environments, be aware of list price jumps when you come to renew. You could attempt to include a clause that limits the price increase on renewal (e.g., “any renewal will cap price increases to X% of the current rates”). Although Microsoft often resists firm renewal caps, it signals your concern.
At a minimum, try to align the EA term with when you expect any major pricing changes, and consider early renewal if that would lock in pricing before a known hike. Duration Beyond Three Years: If a standard 3-year term doesn’t suit your situation (maybe you want to align with a five-year internal tech roadmap), discuss multi-year options.
Microsoft sometimes offers 3+1+1 (three years with two one-year optional renewals) or even a 5-year fixed agreement for strategic customers. Longer terms can sometimes secure better discount,s but beware of reduced flexibility. Ensure that any longer-term plans have escape hatches or adjustment options in case your needs change.
Recommendations:
- Lock in Key Rates: Insist on price hold provisions for all products through the full term. If possible, negotiate a clause that any additional licenses or renewals will honor the same discount level to hedge against future hikes.
- Forecast and Communicate: Share your three-year forecast of user counts and usage with Microsoft during negotiations to justify discounts, and also internally to ensure the budget is allocated. Include expected true-up costs in your IT budget for each year.
- Plan for Change: Build any known changes into the contract – for example, add a clause for a mid-term volume adjustment in the event of a merger, or pre-negotiate pricing for an anticipated new product deployment in year 2.
- Consider an Extension Option: If you think you may need a few extra months or years beyond the term, due to project timing or to align with fiscal calendars, negotiate an option to extend the EA term at the same price. This avoids being forced into a rushed renewal if timing isn’t ideal in three years.
- Review Before Next Renewal: As the EA term progresses, revisit your strategy 12-18 months before it ends (as discussed). Treat this as part of your multi-year plan so you’re never caught unprepared for the next cycle.
FAQs
What is a Microsoft Enterprise Agreement?
A Microsoft Enterprise Agreement (EA) is a volume licensing program for organizations with 500 or more users or devices. It offers flexibility in licensing and payment options.
Why is negotiation important for a Microsoft EA?
Negotiation helps secure the best deal, ensuring the terms and pricing meet your organization’s needs and maximizing the agreement’s value.
What are some key strategies for negotiating a Microsoft EA?
Understand your needs, research market rates, clearly communicate your requirements, and be prepared to compromise.
How can understanding your needs help in negotiations?
Knowing exactly what products, licenses, and services your organization requires ensures that you ask for what you need without paying for unnecessary extras.
Why is researching market rates important?
Understanding what other organizations pay for similar agreements provides a benchmark, helping you negotiate more effectively.
What should you consider beyond price during negotiations?
Consider the included services, payment terms, contract duration, and additional benefits like training or support.
How can the ‘good cop/bad cop’ strategy be used in negotiations?
One negotiator builds a positive relationship with Microsoft, while the other pushes for better terms, creating a balanced approach.
Why should you be prepared to walk away?
If the terms are unfavorable, walking away demonstrates that you have alternatives, which can pressure Microsoft to offer better terms.
How can expert advice benefit your negotiation?
Experienced advisors provide insights and strategies, ensuring you understand the agreement’s complexities and negotiate effectively.
What are common mistakes in EA negotiations?
Common mistakes include inadequate preparation, not fully understanding the agreement, and focusing solely on price.
What are the best practices for negotiating a Microsoft EA?
Best practices include thorough preparation, understanding your needs, effective communication, and willingness to walk away.
How can you optimize your IT budget with a Microsoft EA?
Leveraging volume discounts and fixed pricing helps manage and predict IT spending, allowing you to optimize your budget.
What is the role of internal stakeholders in negotiations?
Engaging internal stakeholders ensures that all organizational needs are taken into account, leading to a more comprehensive agreement.
