Top 10 Tips For Negotiating Microsoft Unified Support Contracts
- Analyze your current Microsoft spend and requirements.
- Choose the right support tier (Core, Advanced, Performance).
- Benchmark pricing using market comparisons.
- Eliminate unnecessary add-ons to reduce costs.
- Request multi-year discounts for long-term savings.
- Highlight Azure usage for better terms.
- Customize support services for your needs.
- Set renewal terms to control future costs.
- Negotiate volume-based discounts.
- Use an independent licensing consultant for expertise.
How to Negotiate Microsoft Unified Support Contracts
Negotiating Microsoft Unified Support contracts effectively can help businesses control costs, maximize value, and align services with their specific needs. Since Microsoft Unified Support operates on a spend-based pricing model, it is crucial to negotiate strategically.
Below are ten tips to help organizations succeed in negotiating their Unified Support contracts.
1. Assess Your Current Microsoft Spend
Before entering negotiations, thoroughly analyze your organization’s annual Microsoft spend. Unified Support pricing is calculated as a percentage of this spend, so understanding your licensing, Azure usage, and software investments is critical. Document all current Microsoft agreements to identify where costs can be optimized.
Tip: Use detailed reports to highlight areas where your spending might have inflated unnecessarily, such as unused licenses or over-provisioned cloud services.
2. Determine Your Support Needs
Evaluate your organization’s support requirements to ensure you don’t overpay for unused services. Unified Support offers three tiers—Core, Advanced, and Performance—each with different service levels and costs.
- Core: Best for businesses with basic support needs.
- Advanced: Includes faster response times and proactive services.
- Performance: Tailored for enterprises with critical workloads.
Tip: Align your business requirements with the appropriate tier to avoid over-purchasing higher-level services.
3. Leverage Competitive Benchmarking
Use data from similar organizations to benchmark Unified Support costs and services. Understanding what other companies pay for similar agreements gives you leverage to negotiate better terms.
Tip: Work with independent licensing consultants or advisors to gain insights into industry standards for Unified Support pricing.
4. Identify and Eliminate Unnecessary Add-Ons
Microsoft Unified Support may include additional services, such as custom workshops or dedicated engineers, that your organization doesn’t need. Carefully review the contract for add-ons and determine their value.
Tip: Negotiate to remove unnecessary features and ensure you only pay for services that add measurable value to your business.
5. Push for Discounts Based on Volume
Large organizations with significant Microsoft spend can often negotiate volume-based discounts. Microsoft may offer better rates for businesses with high licensing commitments, large Azure deployments, or extensive Microsoft 365 usage.
Tip: Emphasize your long-term partnership and future growth with Microsoft to strengthen your case for discounts.
6. Negotiate Multi-Year Contracts
Opting for a multi-year contract can reduce costs, as Microsoft often provides favorable pricing for longer commitments. This locks in your rates and provides cost predictability.
Tip: Ensure that the contract includes clauses for future scalability and flexibility to accommodate changes in your IT environment.
7. Highlight Your Azure Commitments
Use this as a negotiation point if your organization is heavily invested in Azure. Azure usage contributes significantly to your annual Microsoft spending, making it a key factor in Unified Support pricing.
Tip: Highlight your Azure growth plans and negotiate a unified rate that accounts for increased cloud spending over time.
8. Request Custom Service Options
Not all businesses require the same level of proactive services or technical assistance. Rather than accepting a standard package, request tailored support options that meet your organization’s needs.
Tip: Work with Microsoft to customize your Unified Support agreement to include only the services that align with your IT goals.
9. Clarify Renewal Terms and Pricing Adjustments
Unified Support costs often increase during contract renewals, especially if your Microsoft spend grows. Negotiate clear terms for renewal pricing, including caps on cost increases or guarantees for stable rates.
Tip: Include clauses that account for reduced costs if your annual Microsoft spend decreases during the contract term.
10. Engage an Independent Negotiation Expert
Working with an independent Microsoft licensing consultant can give you a significant negotiation advantage. These experts understand the nuances of Unified Support contracts and can identify areas where costs can be optimized.
Tip: Consultants can help you prepare data-driven arguments, benchmark costs, and negotiate directly with Microsoft on your behalf.
FAQ: Top 10 Tips For Negotiating Microsoft Unified Support Contracts
What is the first step in negotiating Microsoft Unified Support?
Assess your current Microsoft spending, licensing usage, and support needs to establish a baseline for negotiation.
How do I determine which Unified Support tier I need?
Evaluate your IT team’s requirements. Core suits basic needs, Advanced includes proactive services, and Performance offers enterprise-level support.
How can benchmarking help with Microsoft Unified Support pricing?
Compare costs with other organizations to ensure you’re getting competitive pricing and industry-standard services.
Can I remove unnecessary features to reduce costs?
Review the contract for add-ons you don’t need and negotiate to exclude them for cost savings.
Are multi-year contracts a good option for Unified Support?
Multi-year contracts often come with discounts and predictable pricing, making them ideal for long-term planning.
Why is Azure usage relevant to Unified Support negotiations?
High Azure commitments can strengthen your case for discounts and better pricing terms in Unified Support.
How can I customize my Unified Support contract?
Work with Microsoft to tailor services, such as removing unused features or prioritizing critical support elements.
What should I focus on for contract renewals?
Negotiate limits on future price increases and ensure the contract reflects your updated Microsoft spend and needs.
Can I negotiate volume discounts for Unified Support?
Yes, larger organizations with significant Microsoft investments can request volume-based discounts.
Why should I use an independent licensing consultant?
Consultants provide expert analysis, benchmarking data, and negotiation strategies to help you secure better terms.
How can I demonstrate value to negotiate better terms?
Highlight your organization’s long-term Microsoft investment, planned growth, and reliance on key technologies like Azure.
What proactive services are included in Unified Support?
Proactive services include health checks, risk assessments, workshops, and system optimization sessions.
How does Microsoft Unified Support compare to Premier Support?
Unlike case-limited Premier Support, unified Support offers unlimited incidents and proactive services under a spend-based pricing model.
What happens if my Microsoft spending changes mid-contract?
Negotiate clauses that allow adjustments to support costs if your Microsoft spending increases or decreases significantly.
How can I avoid overpaying for Unified Support?
Carefully evaluate service tiers, eliminate unused features, negotiate discounts, and revisit your support needs before signing.
