Microsoft Enterprise Agreement (EA) renewals are often multi-million dollar commitments that can shape an organization’s IT spend for years.
Approaching an EA renewal is more than a routine contract update – it’s a strategic negotiation. By starting your EA renewal planning early (around 12 months in advance), you give yourself ample time to gather data, align your team, and create leverage for a better deal.
Early preparation means you can collect detailed usage information, build internal consensus, and approach Microsoft with clear objectives. Read the Microsoft Enterprise Agreement (EA) Negotiation Guide.
Instead of scrambling against a deadline or accepting whatever Microsoft offers at the last minute, you’ll be negotiating from a position of strength.
In this guide, we outline a step-by-step pre-renewal checklist for the year leading up to your EA expiration to help you maximize savings and avoid rushed decisions.
Key Steps in Microsoft EA Negotiation Preparation (12+ Months Out)
For organizations 12 or more months away from their EA renewal, the following key steps serve as a pre-renewal checklist to guide your planning:
Importance of Early Planning
Starting your EA renewal preparations a year ahead is crucial for avoiding last-minute pressure.
If you wait until the final weeks, Microsoft’s sales team can gain the upper hand – you may feel forced to accept unfavorable terms just to meet the deadline. Early planning prevents that scenario.
When you begin early, you set the pace of negotiations instead of reacting to Microsoft’s timeline.
You have time to thoroughly analyze offers, push back on pricing, and even schedule your deal around Microsoft’s fiscal year-end (when they’re eager to hit sales targets) without being rushed. By starting early, you control the agenda – not Microsoft.
Internal Audit of Licenses
A detailed internal license audit is a foundational first step in your EA renewal preparation.
Review your current inventory across all products in your EA – Microsoft 365, Windows, SQL Server, Azure, and any others – and determine how each license or service is actually being used (or if it’s used at all).
This audit will likely uncover “shelfware” – licenses you’ve paid for but aren’t using. Unused or underutilized licenses are immediate savings opportunities.
For example, you might find 200 Office 365 seats assigned to employees who no longer use them. Plan to eliminate or downgrade those in the renewal.
Use the data from your audit as leverage. With hard numbers on what’s actually used, you can confidently justify cutting or reducing certain licenses.
Microsoft will have a harder time pushing back if you can show, with evidence, that 200 licenses went unused last year. An internal audit arms you with facts instead of assumptions, making your case for right-sizing your next EA much stronger.
Stakeholder Alignment
Internal alignment is another early priority. Assemble a cross-functional EA renewal task force well ahead of time. Include IT leadership, procurement or sourcing managers, finance, and key business unit leaders in this team.
Involving all these stakeholders early ensures everyone’s needs and perspectives are considered from the start.
Define what success looks like for the renewal and agree on clear goals. Is your top objective to cut costs significantly? Do you need more flexibility in the contract?
Are there new capabilities or products (like security add-ons or analytics tools) the business wants? Establish these priorities upfront so all stakeholders share a common vision.
By aligning on goals 9–12 months out, you’ll avoid last-minute internal pushback (for example, a VP objecting to dropping a certain product right before signing).
A united team presents a consistent message to Microsoft and strengthens your negotiating stance.
Understand the negotiation timeline, Microsoft EA Negotiation Timeline: From Initial Quote to Final Signature
Baseline and Requirements Gathering
Before engaging with Microsoft, establish your baseline and define your requirements. Document exactly what your current EA includes: all the products and services, the number of licenses for each, your current spend, and any special pricing or terms you have. Knowing your starting point is essential for measuring any proposed changes.
From that baseline, outline what you need (and don’t need) in the future.
Identify services or licenses you plan to drop because they’re underused or not delivering enough value. Also, list any new Microsoft solutions you want to add to support upcoming business needs.
Next, consider which contract terms or provisions you want to improve. Perhaps you want the flexibility to reduce license counts if your user count drops, or a price lock to guard against cost increases over the term.
Write down these must-have changes as well as nice-to-have requests.
This requirements checklist will guide your negotiations and clearly communicate to Microsoft what it will take to earn your renewed business.
Market Research & Benchmarking
Knowledge is power when going into a negotiation. Spend time on market research and benchmarking to understand how your potential deal compares.
Find out what discount percentages and incentives similar companies have secured in their Microsoft EAs. This will prevent you from unknowingly settling for a subpar offer.
If possible, consult independent licensing advisors or peers in your industry for insights. Microsoft’s pricing can be opaque, so external benchmarks help you set realistic targets.
For example, if companiesof your size typically secure 15–20% off the list price, you’ll know to push for similar discounts.
Benchmark data might also reveal extra perks others received (like training credits, extended payment terms, or Azure credits) that you can request as part of your deal.
In short, don’t go in blind. Arm yourself with evidence of what’s achievable in the market. Knowing the going rates and common concessions gives you confidence and helps you recognize whether Microsoft’s offer is truly competitive or needs to be challenged.
Setting a Negotiation Timeline
Don’t let the renewal sneak up on you – create a negotiation timeline with clear milestones. Work backwards from your EA expiration date and set internal deadlines to keep everyone accountable.
A well-planned timeline ensures nothing important gets delayed until the last minute.
- T-12 months: Complete an internal review of all licenses and usage. This comprehensive audit lays the groundwork for your strategy.
- T-9 months: Finish aligning stakeholders and setting goals. By nine months out, your team should be unified on objectives and strategy.
- T-6 months: Initiate contact with Microsoft (or your reseller) and share your intentions. Provide your requirements and start discussions or request a preliminary quote. Early engagement puts you in control of the timeline.
- T-3 months: Enter the intensive negotiation phase. Multiple rounds of bargaining will occur around this time. Aim to have major terms settled at least a few weeks before expiration, so you have time for internal approvals and final paperwork.
Risk Assessment & Mitigation
Even with diligent planning, be prepared for potential risks. Early in the process, identify what could derail your renewal and decide how to address it ahead of time.
One risk is a Microsoft audit revealing you’re under-licensed somewhere, which Microsoft could use as leverage during talks.
Mitigate this by conducting your own internal license compliance audit early. If an internal check finds you have more users than licenses for a product (for example, more Visio users than Visio licenses), fix it now.
Entering negotiations with a clean compliance slate removes a major pressure point Microsoft might otherwise exploit.
Budget risk is another concern. If your projected renewal costs may exceed what’s budgeted, it’s much better to know 9–12 months in advance than right before signing.
Do a cost projection early. If it looks too high, you have time to either secure more funding or scale back the plan. Address budget issues early so you’re not forced into last-minute compromises.
Make sure you have executive buy-in for your plan. A lack of C-suite support can derail a deal at the last minute (for example, a CFO balking just before signing).
Prevent this by briefing key executives (CIO, CFO, etc.) on your strategy early and getting their approval. With leadership aligned, Microsoft can’t divide your team, and you won’t face internal roadblocks when decisions need to be made.
In short, think ahead about what could undermine your negotiation compliance gaps, budget shortfalls, or internal disagreements and neutralize those risks proactively.
By the time you’re sitting at the negotiation table, there should be no surprises left that could weaken your position.
FAQ – Microsoft EA Renewal Preparation
Q1: How early should I start preparing for an EA renewal?
A: Ideally, begin about 12 months before your EA expires. A full year gives you time to collect usage data, align stakeholders, and negotiate without rushing. At minimum, start no later than 6–9 months out.
Q2: What’s the first step in pre-renewal planning?
A: Start with an internal audit of your current licenses and usage. A detailed usage review reveals what you have and what’s actually used, highlighting unused licenses you can cut or areas to optimize in the renewal.
Q3: Who should be on the EA negotiation task force?
A: Include IT leadership, procurement/sourcing, finance, and key business stakeholders on your team. This cross-functional group ensures that all perspectives are covered, allowing you to present a united front to Microsoft during negotiations.
Q4: Can I reduce licenses in my EA renewal?
A: Yes. The renewal is your chance to “true down” license counts without penalty. You can drop or reduce unused licenses (shelfware) at renewal, so you only pay for what you actually need going forward.
Q5: How do benchmarks help in EA negotiation preparation?
A: Benchmarks give you a reality check. Seeing what discounts and terms similar companies achieved lets you set informed targets and spot subpar offers. In short, benchmarks ground your expectations in market reality.
Read about our Microsoft EA Negotiation Service.
