Microsoft EA Renewal Timeline and Checklist for CIOs
Executive Summary
Renewing a Microsoft Enterprise Agreement is a complex project that benefits from early planning and cross-team coordination.
This article provides a clear timeline and checklist for CIOs, CTOs, and procurement leaders to navigate the renewal process smoothly.
It covers the period from 12+ months before expiration through the final execution and post-renewal follow-up. It outlines when to perform key activities like usage analysis, stakeholder alignment, engaging Microsoft, negotiating terms, and obtaining approvals.
Following this guide will ensure you renew your EA on time and favorable terms, without last-minute surprises.
Read Renewing EA vs. Switching to CSP: Deciding Your Microsoft Licensing Path.
Kickoff Early: 12+ Months Before Expiration
An EA renewal can impact your IT budget and strategy for years, so treat it as a major project.
Begin preparations at least a year in advance.
Key steps at this stage:
- Form Your Renewal Team: Establish a core project team to handle the renewal. Include IT asset managers or SAM specialists, procurement or sourcing managers, finance (budget owner), and a representative from legal. Assign an executive sponsor (often the CIO or IT director) to provide vision and clear roadblocks. Early team formation ensures everyone knows their role and no aspect (technical, financial, legal) is overlooked.
- Review Current Agreement & Baseline: Gather all relevant documents – your current EA contract, the products enrolled, quantities, pricing, and any special terms or amendments. Understanding exactly what you have now is the baseline for planning changes. Note the expiration date and any notice periods (sometimes you must inform Microsoft or your reseller 30-60 days prior if not renewing certain components).
- Initial Usage and Compliance Audit: Begin an internal audit of your Microsoft license usage. At 12 months out, it doesn’t have to be final, but get a rough sense: are you underusing some licenses? Any compliance gaps (e.g., more usage than licenses)? Check installation counts, Office 365 active user reports, etc. Also, inventory what Software Assurance benefits you’ve utilized. This early audit flags obvious adjustments (we know we have 50 unused licenses of Product X to drop) and ensures no lurking compliance issue could weaken your negotiation stance.
- Set Preliminary Goals: Articulate what a successful renewal looks like. For example, is it “keep annual costs flat,” or “add these new services within 5 5% budget increase,” or “reduce spend by 10% while maintaining key capabilities”? Having goals will guide your strategy. Also discuss initial thoughts on contract length (standard 3-year or something else) and whether you’re considering big changes like moving to CSP or altering the product mix. No firm decisions are needed yet, but surface these ideas early.
Checklist – 12+ Months Out: Establish project team ✔️; Collect current EA details ✔️;
Start license usage audit ✔️; Define renewal objectives ✔️.
Read Maximizing Cost Savings in Your Microsoft EA Renewal.
Requirements Gathering and Usage Analysis: 9–12 Months Out
Around the one-year mark (or slightly before), deepen your analysis and gather input from across the organization:
- Engage Stakeholders for Requirements: Meet with department heads or application owners in areas like IT operations, security, business units, etc., to understand their plans for the next 3 years. Are they scaling up users? Launching a new product that needs cloud services? Planning to drop any Microsoft-based system? This is crucial to decide which licenses to increase, decrease, or add in the renewal. For instance, if HR plans a new system that doesn’t use SQL Server, you may reduce SQL licenses. Conversely, if marketing wants to roll out Power BI to 200 more people, that should be factored in. Document all foreseeable changes.
- Detailed Usage Metrics: By 9-10 months out, refine your usage audit into a detailed analysis. Identify specific opportunities to optimize: e.g., “Out of 800 Office 365 E5 licenses, 300 can likely be downgraded to E3 based on usage patterns”, or “We have 120 Windows Server licenses with SA, but only 100 servers deployed – 20 could potentially be cut if still unused at renewal.” Also, pinpoint any shortfalls – are there any products where you’re out of compliance or close to it? If so, plan how to reconcile (true-up prior or at renewal). A comprehensive view of usage vs entitlements will directly inform your renewal quantities.
- Evaluate Current Costs vs. Usage: Tie your analysis to money—which areas are we overspending on unused capacity, and which new needs might require budgeting? This is preparation to reallocate spending efficiently. For example, savings from dropping unused licenses could fund new cloud services your teams are asking for. Work with finance to understand how any changes will flow through the budget.
- Begin Market Research: As you clarify internal needs, look outward. Check Microsoft’s roadmap and pricing announcements: are there any known price increases or new product bundles that might affect your renewal? Also, see what peers are doing – are other companies moving to certain Microsoft 365 plans or alternative licensing? This is a good time for a baseline review with a licensing consultant. It’s also when you might start exploring if alternative solutions (like non-Microsoft products) are worth considering for leverage, though that depends on your strategy.
Checklist – 9–12 Months Out: Gather department input ✔️; Complete detailed usage & compliance report ✔️; Identify optimization targets ✔️; Research market and Microsoft changes ✔️.
Engage Microsoft and Explore Options: 6–9 Months Out
By six to nine months before expiration, you should shift from internal analysis to external engagement:
- Signal Intent to Microsoft/Reseller: Let your Microsoft account manager and/or reseller know that you’re beginning the renewal process (they’ll likely reach out anyway). By signaling early, you take control of the narrative: share that you are reviewing needs and will come to them with a well-defined ask. This also ensures Microsoft schedules you in their workload – you don’t want to find out their specialists are all booked later. You don’t need to give them details of your strategy yet; just open the channel and perhaps ask for any available guidance or information on the new program.
- Explore Licensing Program Alternatives: If you consider not renewing the EA and going CSP or something similar, now is the time to get formal quotes and information. Talk to a few CSP partners—have them price out what your current usage would cost under CSP. Also, discuss how a transition would work. If sticking with EA but maybe altering scope, discuss scenarios with your reseller: e.g., what if we remove product X, how would that impact discounts? Gather these options without committing.
- Review Preliminary Microsoft Offers: Microsoft might provide a preliminary quote or renewal proposal around this time (especially if you’ve communicated changes). Review it carefully, but treat it as a starting bid. Compare it against your internal analysis: are they including stuff you don’t need? Is the pricing on each line item aligned with expectations? Identify areas to push back – maybe their quote assumes you’ll keep 1000 seats of a product, but you plan 800, or the discount is only 10% and you know you want 20%. Make a list of questions and counters.
- Benchmark and Budget Alignment: Update your internal financial models with any real pricing numbers you’ve gotten. Ensure you have a solid target budget for the renewal. If the preliminary quote is higher than the budget, figure out where to cut or where to negotiate harder. Conversely, if you have room, identify must-have additions that should be prioritized. Around 6 months out, many companies bring the CIO/CFO into a checkpoint meeting: “Here’s our likely renewal shape and expected cost, compared to budget, and here are the negotiation targets.” This ensures leadership is aware and on board with the general plan or can adjust funding if necessary (better now than last-minute).
Checklist—6–9 Months Out: Notify Microsoft/partner of renewal process ✔️; investigate CSP/MCA or other licensing options ✔️; obtain initial Microsoft quote or proposal ✔️; align projected costs with budget and leadership ✔️.
Negotiation and Refinement: 3–6 Months Out
As you enter the final stretch (quarter or two before expiration), it’s time to negotiate in earnest and nail down the agreement details:
- License Mix Finalization: By 3-4 months out, lock in what exactly you intend to renew and in what quantities. This means finalizing decisions like how many of each Office 365 plan, which server products to include or drop, and any new additions (e.g., adding Power BI for 50 users). Use the latest data (maybe you did another quick usage check at 6 months out to see any trends). A precise demand plan arms you for negotiation and avoids scope creep from Microsoft’s side.
- Negotiate Pricing and Terms: Engage with Microsoft (often multiple rounds) to improve the offer. Focus on areas like: discount percentages (push for that extra few points off), price holds on cloud subscriptions, multi-year Azure commitments for extra credits, and any special terms you need (like the ability to swap licenses, or an extended timeline for a transition). This is where your preparation pays off – use your data: “We only need 800 of these, not 1000, so remove those 200 from the quote” and “We have quotes from CSP for Azure at similar rates; Microsoft, you’ll need to give us a better deal to keep it in the EA.” Document every concession or change discussed. Keeping a running list of negotiation points and outcomes is good practice.
- Address Sticking Points: If there are contentious items (e.g., you want a cap on price increases for a certain product in years 2-3, or Microsoft wants you to include a new product bundle), now’s the time to resolve. Don’t leave any major issues to the last week. If needed, escalate: involve higher-ups on both sides. For instance, a CIO-to-Microsoft sales director call can sometimes break a pricing impasse or get approval for an exception. Stay firm on your must-haves, but also be ready with alternatives (maybe if Microsoft can’t budge on price, they throw in extra value elsewhere).
- Draft Agreement Review: As negotiations converge, Microsoft or your reseller will draft the renewal paperwork (often an updated EA document or an amendment). Read it thoroughly. Make sure all negotiated terms are reflected. Check the product list, quantities, unit prices, and special terms or notes. This is where errors often happen – a discount agreed in an email might be missing from the contract draft. It’s much easier to get it corrected now than after signing. Have your legal team review the T&Cs, even standard EA documents, because Microsoft updates language periodically. Ensure nothing onerous crept in (like new clauses on data usage, etc.) that you didn’t expect.
Checklist – 3–6 Months Out: Finalize products & quantities ✔️; Conduct formal negotiations (multiple rounds) ✔️; Escalate issues as needed ✔️; Review draft contract for accuracy ✔️.
Finalize and Execute: Last 0–3 Months
In the final quarter before your EA expires, the focus is on crossing T’s and dotting I’s so there’s a smooth transition into the new agreement period:
- Obtain Internal Approvals: Route the final deal internally for sign-off. This typically means getting approval from finance on the spend, legal on the contract, and possibly from executives if the dollar value is high or if it’s a strategic decision. Because you’ve kept leadership informed, this should be a rubber stamp, but formal approval is needed to sign. Ensure you abide by any procurement policies (like presenting to a purchasing committee or board if required). Timing is key here – gather approvals well before the expiration date so that a signed agreement can be returned to Microsoft in time.
- Coordinate Signatures and Activation: Work with your reseller/Microsoft on signing. Nowadays, it might be an electronic signature via DocuSign or similar. Confirm the steps: often the customer signs first, then Microsoft countersigns, and then you get a fully executed copy. Ensure this is all completed before your current EA expires to avoid licensing lapse. Additionally, confirm with Microsoft the effective start date of the new agreement (usually the day after the old one ends) and that all your services will continue uninterrupted. If you’re changing something like moving to a new enrollment number, verify there’s no action needed in portals.
- True-Up and True-Down: You typically reconcile any changes since your last anniversary at renewal. If you added licenses during the last year outside of the agreement, make sure to officially account for them now (you might have to do a final true-up purchase under the old EA or include them in the new one’s starting counts). Also, if you dropped things, the renewal is effectively a “true-down” – ensure Microsoft’s final invoice for the old term and initial invoice for the new term reflect that. It’s easy for miscommunications to happen, and you get billed for too many licenses – double-check quantities on all final paperwork and invoices.
- Communication and Implementation: Inform relevant internal teams about the outcome once signed. IT operations should know if license changes will occur (e.g., “we did not renew Visio for 50 users – those installations will deactivate in X days unless we assign different licenses”). Software asset managers should update internal records to reflect the new agreement details. If you negotiated special benefits like training days or credits, pass that info to whoever will utilize them. Translate the contract into actionable items: remove any software that’s no longer licensed, deploy new licenses as planned, and update documentation with the new contract number and terms.
Checklist – 0–3 Months Out: Secure internal approvals ✔️; Sign and execute the new EA ✔️; Complete final true-up/true-down ✔️; Communicate changes and update records ✔️.
Post-Renewal Follow-Up
After the ink dries, a few additional steps help ensure long-term success:
- Set Up Ongoing Management: Take all the plans you made to optimize and ensure they’re implemented. If you reduced 200 licenses in the contract, verify that those licenses have been removed from use (e.g., reclaim them in admin portals). If you added new services, ensure they’re properly assigned and being used (so you get your money’s worth). Establish a cadence – maybe quarterly – to review license assignment and consumption against the new EA so you stay optimized.
- Utilize Your Benefits: Often, EAs come with Software Assurance benefits or negotiated extras. Soon after renewal, compile what’s available (like a list of training vouchers, support hours, Azure credit, etc.) and create a plan to use them. These benefits can improve your ROI on the EA but are frequently forgotten until they expire. Assign an owner to each benefit (e.g., HR training department gets the training vouchers info) to ensure they’re consumed.
- Document Lessons Learned: Have a wrap-up meeting with your team. Discuss what went well in the renewal process and what could be improved for next time. Document any new concessions you got or any parts of the agreement you want to revisit. This becomes a starting point file for your next renewal in 2.5 years. Also, capture any commitments Microsoft made verbally that aren’t in the contract (like “we’ll discuss XYZ next year”); keep an email record – those could be leveraged or important context later.
- Monitor Microsoft Communications: After renewal, Microsoft might announce changes that affect you (e.g., a new product included in EA, or a price increase in 2 years). Keep an eye on licensing announcements. Being aware early lets you adjust your strategy or push back if needed (for example, if a new product launch could benefit you, you might negotiate it into your agreement mid-term).
- Start the next renewal prep early (again): It might sound crazy when you have just finished, but leading organizations treat license management as continuous. Maintain that stakeholder group, even if they meet a couple of times a year, to track usage and any business changes. This makes the next renewal not a scramble but a smooth extension of ongoing governance.
Following this structured timeline and checklist greatly reduces the risk of rushing decisions or missing key savings opportunities.
EA renewals have many moving parts, but with project discipline, you can turn a stressful deadline into a strategic exercise that benefits your organization.
Recommendations
- Begin renewal planning 12+ months in advance. Early initiation is critical; it gives you time to gather data, consult stakeholders, and approach Microsoft from a position of strength rather than urgency.
- Assemble a cross-functional team early on that includes IT, procurement, finance, and legal. A united front with clear roles ensures no aspect of the renewal (technical requirements, budget, contract language) is overlooked or delayed.
- Conduct a thorough usage and needs analysis well before negotiating. Knowing exactly what you have and what you need prevents overbuying and highlights areas to cut, forming the basis of an optimized renewal proposal.
- Engage with Microsoft proactively. Don’t wait for them to dictate the timeline or terms – reach out 6+ months ahead, share your expected needs (at a high level), and ask for their input. This also signals that you are taking control and will be negotiating seriously.
- Share a detailed timeline or playbook (like the one above) internally. This keeps everyone accountable (e.g., stakeholders know they must provide requirements by month X) and prevents last-minute scrambles.
- Negotiate with time to spare. Aim to finalize terms at least a month or two before expiration. This buffer allows for unexpected hurdles, internal approval processes, and ensures you won’t have a lapse in licensing.
- Double-check all contract details before signing. Small errors or omissions in the paperwork can lead to big problems later (like being overbilled). Ensure the final agreement correctly reflects every negotiated discount, flexible term, and product count.
- Prepare for execution and beyond. Don’t consider the job done when the agreement is signed. Have a plan to implement license changes immediately so you realize the benefits (e.g., uninstall software you dropped, deploy new licenses, inform users if needed). Also, schedule ongoing reviews during the EA term to stay on top of usage and set the stage for an even better position at the next renewal.
FAQ
Q1: When is the best time to start planning for an EA renewal?
A: Ideally, begin 12 to 18 months before your EA expires. For most, one year ahead is the sweet spot to kick off formal planning. Large enterprises often start 18 months out because of the complexity and internal approvals needed. Starting early gives you ample time to dive deeply into usage, gather future requirements from all business units, and negotiate without rushing. If you have less than a year, start immediately – the earlier the better. Even if your renewal is just 6 months away, you can still apply these steps in a compressed timeline; just be aware you’ll have to work quickly and might have less leverage if time is short.
Q2: Who should be on the EA renewal team?
A: Include representatives from IT, procurement, finance, and legal at a minimum. IT provides insights into technical needs and usage, procurement/strategic sourcing brings negotiation skills and vendor management, finance ensures the budget and business case align, and legal reviews contract terms. It’s also wise to involve someone from each major business unit or a delegate who can voice departmental needs (perhaps via IT business relationship managers). An executive sponsor, like a CIO or CTO, should oversee the team. If you have a Software Asset Manager or Licensing Specialist on staff, they will be a key player doing the analysis and ensuring compliance. Essentially, any stakeholder impacted by or knowledgeable about Microsoft licenses should have input, but keep the core team manageable (a team of about 5-8 is common).
Q3: What if our organization didn’t start early, and the EA renewal is only a few months away?
A: All is not lost, but you must accelerate and prioritize. Immediately gather your license data (perhaps using scripts or tools to pull usage from Microsoft portals), identify obvious cuts or urgent needs, and get leadership alignment on key objectives (like “we must not exceed $X budget”). Reach out to Microsoft immediately to inform them you’re reviewing the renewal – sometimes they can grant a short extension of the current EA term if you need more time (though it’s not guaranteed and could cost more monthly). Internally, mobilize a “war room” approach: meet frequently, tackle tasks in parallel (one person crunches usage numbers while another drafts negotiation asks, etc.). You might also lean on external experts or consultants to rapidly analyze and advise. The main risk in a short timeline is having to accept status-quo renewal terms, but if you focus on the biggest cost items, you can still potentially negotiate those. After this renewal, institute a better process – put a reminder 2 years ahead of the next expiration so you don’t end up in a time crunch again.
Q4: How long does the EA renewal process take once we start engaging Microsoft?
A: It can take a few months from initial talks to a final signed agreement. A typical timeline: you might notify Microsoft around 6-9 months out with your intent and some initial changes. They take a few weeks to come back with a proposal. Then expect a back-and-forth negotiation over a couple of iterations, which could span 1-2 months. By ~3 months out, you’d want to have a near-final offer and start the paperwork, which can take several weeks, including legal review and signatures. In short, budget 3-4 months for active negotiation and contracting. More time is needed if your organization has lengthy approval processes or if you’re making big changes (e.g., evaluating a move to CSP might add time). If you start 12 months out, you spend the first half gathering info and the second half in negotiation mode. Starting late compresses these phases into maybe 1-2 months of frantic activity. Also, if your EA expires at the end of June (common), Microsoft’s team will be extremely busy in Q4, so engaging them earlier (Q3 or Q2) is wise to get more attention.
Q5: What if we can’t reach an agreement with Microsoft by the expiration date?
A: It’s rare, but if negotiations are truly stalled as the deadline looms, you have a couple of options. One is to ask Microsoft for a short-term extension of the existing EA. They have offered 3-6 month extensions in some cases, which prorate your current agreement costs, to allow more time to negotiate. This must be requested and approved – typically if both sides feel a deal is close but need more time. Another option (less ideal) is to drop into a “lapsing” state: your licenses don’t stop working immediately, but you would technically not have a valid agreement, which can be a compliance issue. Usually, Microsoft and customers avoid that scenario. If no deal seems reachable because, say, you plan to switch to another licensing program, coordinate the end of the EA and the start of the new method to be seamless. In any case, communicate openly with Microsoft account reps – if they know you’re acting in good faith, they will likely accommodate an extension. Going past expiration without anything in place is risky (legal use of the software would be questionable after grace periods). Thus, using an extension or signing a shorter 1-year renewal as a stop-gap could be a solution if negotiations drag out.
Q6: How do I know if we’re getting a good deal in our EA renewal?
A: “Good deal” can be subjective, but a few yardsticks:
- Peer Comparison: If you have networking groups with other CIOs or IT procurement professionals, discreetly ask what sorts of discounts or concessions they got, especially if they’re of a similar size or industry. If you find out everyone of your size got 25% off and Microsoft’s giving you 10%, that’s a red flag to push harder.
- Benchmark Reports: Industry analysts and consultants specialize in software deal benchmarking. Engaging one for a quick benchmark can reveal if your pricing is above average.
- Microsoft’s pricing transparency: Some parts of EA pricing are standardized (like Level A-D discount tiers). Ensure you’re at least getting the standard volume discount for your level. A good deal might mean you’re getting to pay Level D prices even if you’re technically Level C, for example.
- Value Gained vs. Previous Term: Compare the outcome to your last EA. Are you paying roughly the same or less per user for the same products? Did you secure more value (like additional products or services) for only a minor cost increase? If you dramatically expanded usage but kept costs flat, that’s a win. If costs went up, did they go up proportionally less than your license growth?
- Meeting Your Objectives: Ultimately, if you set objectives (cap cost increase at X%, include Y new service, etc.), did you meet them? If yes, you likely got a deal that fits your definition of success. If not, analyze whether it was due to market factors or possibly leaving negotiation room on the table.
- Gut Check on Sales Tactics: If Microsoft quickly agreed to all your asks, perhaps you could have asked for more (rare, but possible!). If every item was a battle and you still got some, you probably squeezed a decent amount.
Remember, “good deal” isn’t just the lowest price – terms and flexibility could save money later or prevent headaches. If you won some contractual flexibility others don’t have, that’s also part of the deal quality.
Q7: What should be on my radar during the EA term so renewal goes well next time?
A: Treat the period between renewals as preparation time as well. Some tips:
- Quarterly true-up checks: Simulate a true-up every quarter internally. This means checking how many additional licenses you’ve deployed. This avoids a huge surprise at the annual true-up and renewal.
- Monitor utilization: Keep tracking the usage of each product. If usage starts dipping (users stop using a service), note it for potential removal at the next renewal. If usage of a new product grows, budget for expanding it.
- Stay updated on licensing changes: Microsoft might introduce new bundles or change program rules. For example, if they announce a new “Microsoft 365 E7” next year, you’d want to know if it could impact your plans. Subscribe to Microsoft licensing blogs or have periodic calls with your Microsoft rep about what’s coming down the pike.
- Engage users and IT about needs: Don’t wait until 12 months to discover whether a division plans to move off Microsoft CRM or that developers need GitHub Enterprise (Microsoft-owned) next year. Foster communication where big shifts in the tech stack that affect licensing are brought up early. Perhaps institute an annual internal review of all software usage and plans.
- Document changes and decisions: If you remove 200 licenses now, jot down why and who agreed. If you had to accept a certain term in the contract you didn’t love, note it so you can target it next time. Keep a living document of EA-related info. This makes ramping up the next renewal team easier with history in hand.
- Budget for increases: If you know Microsoft tends to raise prices 5% a year on certain products, factor that into long-term budgets so it’s not a shock at renewal if your discount doesn’t fully offset it. Possibly buy more in advance (via longer subscription terms or added licenses) if you foresee a price hike and have an EA that allows ordering before the end of the term at current prices.
Q8: Should we consider hiring an outside consultant to assist with our EA renewal?
A: Many enterprises do, especially if tens of millions of dollars are on the line or lack internal licensing expertise. A good software licensing consultant or advisory firm can:
- Provide benchmark data on pricing and terms others are getting (strengthening your negotiation position).
- Help analyze your usage and identify optimization opportunities you might miss.
- Navigate Microsoft’s complex licensing rules to ensure you’re not accidentally non-compliant or leaving value on the table.
- Coach your negotiation strategy, and even participate in calls anonymously or behind the scenes to guide counteroffers.
- Review contracts with a fine-tooth comb for gotchas.
The cost of a consultant might be a small fraction of what they help you save. However, ensure they are reputable and knowledgeable about Microsoft EA specifics (maybe get references).
Also, involve them early enough; bringing someone in 2 weeks before signing isn’t helpful. If your organization has a stringent procurement policy, you might have to justify this expense, often pointing to the potential savings or avoiding pitfalls.
If you have a relatively small EA or strong in-house expertise, you might not need outside help. It depends on your confidence level and the complexity of your scenario.
Q9: What are common pitfalls during the EA renewal process, and how can we avoid them?
A: Some pitfalls to watch out for:
- Starting Late: As discussed, this can lead to rushed decisions and unfavorable terms. Avoid by planning early (it’s the #1 pitfall).
- Poor Internal Alignment: If IT, procurement, and finance aren’t on the same page, you may send mixed messages to Microsoft or miss internal approvals. Avoid by involving all parties from the start and communicating regularly.
- Overcommitting “just to save”: Sometimes, lured by a bigger discount, companies commit to more licenses or products than needed. This usually backfires as shelfware. Avoid by sticking to data-driven needs, not vendor suggestions of “you might use this later.”
- Ignoring Future Needs: On the flip side, not accounting for likely growth can leave you short or facing big true-up costs. Avoid by getting those projections from business units and negotiating growth terms.
- Last-Minute Surprises: Panic can occur when you realize a week before renewal that you need extra approval or that a certain term is unacceptable. Avoid this by having a detailed timeline (as in this article) and checking off tasks methodically.
- Contract Oversights: Assuming the contract is boilerplate and not reviewing changes could lock you into something unexpected (like a harsher compliance audit clause or new outsourcing restriction). Avoid by reading the contract fully and using legal expertise.
- Not Leveraging Competition: Even if you won’t switch from Microsoft, not leveraging the possibility (e.g., comparing AWS vs. Azure costs or Google vs. Office 365) is a missed chance to pressure Microsoft. Avoid this by doing at least a cursory competitive comparison and mentioning it in negotiations (“we evaluated X, so we need a strong reason to stay with Microsoft”).
- Forgetting Post-Renewal Follow-through: Some sign and celebrate, but then fail to remove those licenses they said they would, or don’t inform users of changes. This leads to compliance or value leakage issues. Avoid by executing a post-signing action plan immediately (license adjustments, communications, benefit usage, etc.).
Q10: Are there any quick wins or easy cost savings during renewal that we might overlook?
A: A few areas often overlooked:
- Eliminating Duplicate Services: Sometimes, organizations forget they enabled a redundant service. For example, paying for a third-party VPN or security software that Microsoft 365 already covers. For the renewal time, check if you can drop some third-party costs by using Microsoft features you’re already licensing (or vice versa – drop the Microsoft component if you prefer the third-party).
- Negotiating Training Credits: Microsoft may offer free training days or certifications as part of the deal. If not offered, ask. Upskilling your staff on Microsoft tech can increase ROI and would otherwise cost money.
- Staggered Payments: While the total cost might remain, negotiating to align payments with your fiscal year or get a larger discount for upfront payment could help cash flow or save money if you can pay in a lump sum. Sometimes Microsoft gives a slight percentage off for paying 3 years upfront – if you have cash, that’s “free” savings.
- True-Down at Renewal: We mention it a lot, but the number of renewals for the same quantity is surprising. Truly scrutinize if you can trust anyone. Every license you drop is immediate savings.
- Check for Promo Bundles: Microsoft occasionally has promotions (like “if you add Dynamics 365 to your EA, you get 15% off those licenses” or similar). See if any current promos align with your needs—if you were considering that product anyway, the promo could tip you in. If you weren’t considering it, don’t get swayed unless the value is clear.
- License Reassignment: If you plan structural changes, like moving some users to a different, cheaper license, doing that close to renewal can reduce your renewal count. For example, converting some heavy users from Office 365 E3 to F3 (frontline) if they only need email and Teams can cut costs. It’s a bit of admin work, but a quick win if viable.
- Audit Risk Mitigation: While not a direct “saving,” negotiating an “Extended True-Up” or a clause to forgive certain compliance issues can save potential audit penalties. If you suspect any gray areas, you can sometimes get an amnesty on past accidental overuse by quietly including it in the renewal purchase. It’s not published, but Microsoft reps have some leeway to resolve compliance issues during renewal discussions. Catching and addressing those now avoids a hefty surprise audit bill later (which is a huge saving in a sense!).
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