Microsoft Enterprise Agreement vs Select Plus
- Microsoft Enterprise Agreement:
- Aimed at large organizations (500+ users/devices).
- Offers significant cost savings for large-scale deployments.
- It simplifies license management and is flexible for adding/adjusting services.
- Microsoft Select Plus:
- Suited for mid-size to large businesses (250+ users/devices).
- Allows pay-as-you-go license purchases.
- It provides license mobility and is not tied to specific machines.
Microsoft Enterprise Agreement vs Select Plus
Choosing the right Microsoft licensing option is crucial for optimizing costs, streamlining IT processes, and ensuring that your organization’s technology aligns with your needs.
Two popular licensing options often considered are the Microsoft Enterprise Agreement (EA) and the Select Plus Agreement. Each has distinct features, benefits, and targeted user bases, so understanding their differences is essential to making the best decision for your business.
In this article, we will explore the differences between Microsoft EA and Select Plus in detail, focusing on the strengths, limitations, and suitability to help you determine the most appropriate licensing model for your organization.
Understanding Microsoft Enterprise Agreement (EA)
The Microsoft Enterprise Agreement is designed for large enterprises with 500 or more users or devices. It provides a three-year licensing solution and allows organizations to license Microsoft software at volume discounts.
This agreement is particularly beneficial for companies that need a comprehensive licensing structure for their entire organization.
Key Features of Microsoft EA:
- Three-Year Commitment: The EA has a term length of three years, giving organizations stability and predictable costs.
- Volume Discounts: Large volume purchases allow significant cost savings compared to individual licensing.
- Annual True-Up: The EA provides flexibility for growth, allowing businesses to report and pay for additional users or devices annually through a “True-Up” process.
- Software Assurance (SA): Software Assurance benefits include access to product upgrades, training, support, and planning services.
- Centralized Management: The EA centralizes all licensing needs under one agreement, making it easier for IT teams to manage licenses.
Understanding Microsoft Select Plus Agreement
The Select Plus Agreement is designed for organizations of varying sizes that prefer to make purchases as needed without committing to a long-term agreement. Unlike the EA, Select Plus is transaction-based, which allows more flexibility for those who do not need to meet the minimum requirements of the Enterprise Agreement.
Key Features of Select Plus:
- No Expiration: Select Plus has no defined end date, allowing perpetual software purchases without renegotiating a new contract after three years.
- Pay-As-You-Go: Select Plus allows organizations to buy licenses as needed instead of committing to a large upfront purchase.
- Flexible Licensing: With no minimum user or device requirements, Select Plus can accommodate fluctuating software needs, ideal for businesses with changing demands.
- Software Assurance Optional: Unlike EA, Software Assurance is optional, allowing businesses to choose whether to add it to specific products.
- Transactional Model: Select Plus offers a transactional model, enabling different departments within an organization to purchase licenses independently while maintaining centralized billing.
Comparison Table: Microsoft EA vs Select Plus
To give you a better understanding of the differences between Microsoft EA and Select Plus, here’s a quick comparison of their key features:
| Feature | Microsoft EA | Select Plus |
|---|---|---|
| Commitment Length | 3 years | No fixed term |
| Minimum Users/Devices | 500+ | No minimum |
| Pricing | Volume Discounts | Pay-As-You-Go |
| Flexibility | Annual True-Up | Purchase as needed |
| Software Assurance | Included by default | Optional |
| Centralized Billing | Yes | Yes, but transactional by department |
| Ideal Customer Size | Large enterprises (500+ users) | Small to medium organizations |
| Cloud Integration | Focus on Microsoft 365 and Azure | Optional cloud adoption |
When to Choose Microsoft Enterprise Agreement (EA)
Microsoft EA is ideal for large organizations that need comprehensive coverage and benefit from a predictable, centralized approach to licensing.
Advantages of Microsoft EA
- Volume Pricing Discounts: EA provides substantial cost savings by licensing products in bulk, particularly for companies with more than 500 users or devices. For example, a company licensing Microsoft 365 for 2,000 employees will receive better pricing through an EA than purchasing licenses individually.
- Predictable Costs: With a three-year commitment, organizations can more accurately forecast their software expenses, allowing for better budget planning.
- Centralized Management: All licenses are managed under one agreement, which benefits large organizations needing to streamline IT management. Centralized billing also reduces administrative overhead.
- Software Assurance Benefits: EA includes software assurance by default, which provides product upgrades, support, training vouchers, and planning services. This helps organizations keep their software updated and their workforce trained.
- Annual True-Up Process: EA allows for an annual review and adjustment of license counts. This feature particularly benefits companies experiencing growth, as they can add licenses each year without renegotiating the entire agreement.
Examples of Ideal EA Customers
- Multinational Corporations: Large corporations needing standardized tools across multiple offices globally benefit from EA’s centralized approach.
- Manufacturing Enterprises: Manufacturing companies with extensive IT needs and multiple facilities can use EA to ensure all locations have the necessary tools and are flexible enough to adjust as they expand or downsize.
When to Choose Select Plus
Select Plus is suited for organizations that need more flexibility in licensing without a long-term commitment and prefer to make purchases based on current needs.
Advantages of Select Plus
- No Minimum Requirements: There is no requirement for a minimum number of users or devices, making Select Plus an excellent choice for smaller businesses or those with fluctuating employees or devices.
- Flexible Purchasing: Select Plus offers a pay-as-you-go model, enabling organizations to buy licenses when needed rather than commit to a bulk purchase. This is advantageous for companies with seasonal workers or those experiencing unpredictable growth.
- Transaction-Based Model: Each department within an organization can make independent purchases while maintaining centralized billing for easier management. This decentralized purchasing capability suits companies with independent divisions or subsidiaries.
- Perpetual Licensing: Select Plus licenses are perpetual, meaning that once purchased, the licenses can be used indefinitely. This particularly appeals to organizations seeking long-term investments without recurring licensing fees.
Examples of Ideal Select Plus Customers
- Mid-Sized Enterprises: Select Plus’s flexibility and lack of minimum thresholds can benefit companies that do not need 500 licenses or more.
- Organizations with Independent Departments: Companies with different divisions that have distinct software needs can use Select Plus, which allows each department to manage its software requirements while benefiting from consolidated billing.
Cost Considerations: EA vs Select Plus
One key factor in deciding between EA and Select Plus is cost. Both agreements have different pricing models that suit different types of businesses.
- EA Cost Model: EA offers volume pricing, making it suitable for large organizations that can benefit from discounted rates. The annual True-Up ensures that additional licenses are added at the agreed-upon rates, maintaining predictable costs.
- Select Plus Cost Model: Select Plus uses a transactional model to buy licenses as needed. This allows organizations to avoid large upfront costs and gives flexibility to manage budget constraints effectively. However, there are no volume discounts like those offered in an EA, which means that, for large-scale deployments, EA might offer better long-term savings.
Ultimately, Microsoft EA suits larger organizations that can utilize volume discounts and centralized license management. At the same time, Select Plus is best for those who need purchasing flexibility and have a smaller or more dynamic user base.
Software Assurance Differences
Software Assurance (SA) is another point of distinction between EA and Select Plus:
- EA Software Assurance: In EA, Software Assurance is bundled by default. This gives organizations additional features like product upgrades, support services, training vouchers, and planning assistance. For many large organizations, these additional benefits provide substantial value, ensuring their software and IT teams are always up-to-date.
- Select Plus Software Assurance: In Select Plus, Software Assurance is optional. This allows organizations to choose SA for specific licenses that need the added benefits without paying for it. This flexibility is ideal for companies that want to save product costs without ongoing upgrades and support.
For companies that prioritize having the latest software versions or benefit from support services and training, the EA with Software Assurance is a better option. Conversely, the Select Plus model without mandatory Software Assurance can be more cost-effective if these services are less critical.
Read our article comparing Microsoft EA with MPSA.
Flexibility and Long-Term Commitment
Flexibility is a key differentiator between EA and Select Plus, and understanding the level of commitment required by each can help make the decision clearer.
- EA Flexibility: The Enterprise Agreement requires a three-year commitment and mandates a minimum number of users or devices, making it less flexible compared to Select Plus. However, the True-Up feature does offer some adaptability, as companies can add licenses annually if their needs grow.
- Select Plus Flexibility: Select Plus offers much more freedom. With no defined term length and minimum requirement, companies can purchase licenses when needed, making it ideal for those with changing needs. This flexibility extends to buying licenses for different departments individually, which can be very useful for organizations where divisions operate autonomously.
Cloud Integration and Hybrid Solutions
EA and Select Plus can be used for cloud services, but their approaches to cloud integration differ.
- EA Cloud Integration: EA is geared towards cloud adoption, particularly with Microsoft 365 and Azure. Organizations migrating to the cloud or operating hybrid environments can benefit from discounts and features that simplify cloud transitions. The Azure Hybrid Benefit allows existing Windows Server licenses to be used in the cloud, an additional cost-saving measure.
- Select Plus Cloud Integration: Select Plus supports cloud adoption but does not inherently push customers towards cloud services. It allows for optional cloud integration, which can be ideal for companies that want to maintain traditional on-premises infrastructure while selectively using cloud services.
Managing Compliance and Licensing Complexity
Managing compliance and keeping track of licenses is critical to avoid penalties.
- EA Compliance Management: With EA, managing compliance is simplified through a centralized agreement. The annual True-Up process ensures that any increase in usage is accounted for, minimizing compliance risks. Organizations also receive support through Software Assurance, which can assist in ensuring compliance.
- Select Plus Compliance Management: Select Plus offers flexibility but requires diligent tracking. Since there are no set thresholds, organizations need a robust system for tracking software deployments and ensuring compliance. The transactional nature of Select Plus means each department could be purchased independently, which may increase administrative efforts to maintain compliance.
Which One is Right for Your Business?
The choice between Microsoft EA and Select Plus depends on your organization’s size, growth rate, and licensing needs.
- Choose Microsoft EA if Your organization has over 500 users or devices, needs predictable costs, prefers volume discounts, and benefits from centralized license management and support services. EA is ideal for large, established companies that value the benefits of Software Assurance and want long-term cost stability.
- Choose Select Plus if Your organization has fluctuating software needs, requires purchasing flexibility, or has multiple independent departments. It is also suitable for businesses that do not wish to commit to a long-term agreement and prefer the ability to scale licenses up or down as needed.
FAQ: Microsoft Enterprise Agreement vs Select Plus
What is the Microsoft Enterprise Agreement (EA)? It is a volume licensing program for large organizations with 500 or more users or devices. It consolidates licenses for various Microsoft products and services under a single agreement, offering cost savings and simplified management.
What is the Microsoft Select Plus agreement? Microsoft Select Plus was a volume licensing program aimed at mid-size to large organizations with 250 or more users or devices. Although it was phased out in 2015, existing agreements remain valid. Microsoft encourages customers to transition to the Microsoft Products and Services Agreement (MPSA).
Who should consider the Enterprise Agreement? The Enterprise Agreement is ideal for large organizations with 500 or more users or devices that require a comprehensive and scalable licensing solution. It offers significant cost savings for high-volume deployments and streamlined management.
Who should consider Select Plus? Select Plus was suitable for mid-size to large organizations needing flexible and transparent licensing without a long-term commitment. Organizations with existing Select Plus agreements should consider transitioning to MPSA for improved flexibility and management capabilities.
What are the main benefits of the Enterprise Agreement? Key benefits of the Enterprise Agreement include significant upfront cost savings for large-scale deployments, simplified license management for all users or devices, and flexibility to add and adjust products and services throughout the agreement term.
What are the main benefits of Select Plus? Key benefits of Select Plus include no specific term length, allowing purchases as needed, clear visibility of overall license ownership and license mobility, and enabling flexible software deployment across different devices.
How does the commitment level differ between EA and Select Plus? The Enterprise Agreement requires a three-year commitment with upfront payment, making it suitable for organizations with predictable long-term licensing needs. Select Plus allowed for flexible, as-needed purchases without a fixed term length.
Can both EA and Select Plus be used to purchase cloud services? Yes, the Enterprise Agreement and Select Plus supported purchasing Microsoft cloud services. However, MPSA now offers a more seamless integration of cloud and on-premises software purchases under a single agreement.
How does license management differ between EA and Select Plus? The Enterprise Agreement simplifies license management by covering all users or devices under a single agreement. At the same time, Select Plus provides clear visibility of license ownership and mobility, allowing licenses to be used across different machines.
What types of organizations benefit most from the Enterprise Agreement? Large organizations with 500 or more users or devices, extensive IT infrastructure, and a need for predictable, long-term licensing solutions benefit most from the Enterprise Agreement.
What types of organizations benefit most from Select Plus? Select Plus’s flexibility, transparency, and license mobility benefited Mid-size to large organizations with 250 or more users or devices. Existing Select Plus agreements remain valid, but transitioning to MPSA is encouraged.
How does the purchasing process differ between EA and Select Plus? The Enterprise Agreement involves a single, consolidated purchasing process for all licenses and services, while Select Plus allows for more flexible, incremental purchases as needed.
Is there a difference in cost structure between EA and Select Plus? The Enterprise Agreement typically offers cost savings through volume discounts and predictable annual payments. Select Plus provides spending flexibility, allowing organizations to manage costs based on their current needs without a long-term commitment.
What are the administrative requirements for managing an EA? Managing an Enterprise Agreement may require dedicated staff to oversee procurement, license tracking, and compliance. This centralized approach helps streamline administrative tasks for large organizations.
What are the administrative requirements for managing Select Plus? Managing Select Plus involved tracking assets and expenditures through the Microsoft Volume Licensing Center. It provided a user-friendly portal for handling administrative tasks and ensuring compliance. Transitioning to MPSA can offer improved management capabilities.
