Even before the ink is dry during an EA renewal, Microsoft is already planning how more revenue can be generated by the next customer renewal event. It`s not a large-scale sales discussion – it`s a formalized program on which sales and account teams are trained and measured. In this context, corporate clients should react with the same rigour, discipline and data/Intel. There are many ways to license and/or subscribe to Microsoft products. The Licensing Solutions Provider or the account employee of a given company may not be well aware of all the options available. However, they are well trained (and motivated by incentives) to encourage customers to increase the cost of licensing. Make sure you ask Microsoft`s licensing specialists how to better structure licensing for reduced expenses and consider getting impartial expertise to help the sourcing team review the recommendations. For it-sourcing-pros charged with negotiating a renewal, the consequences are serious. Its next renewal of Microsoft EA should not be treated as usual, as it offers greater opportunities for over-publishing and compliance errors. On the other hand, it is also an opportunity to assimilate and optimize the EA for more value, more flexibility and Best Match license that reduces costs and risks. Chances are you`ll have to get closer to the renewal date and ask yourself whether or not you have left with Microsoft Unified Support. First, you need to be prepared to ask your Microsoft account manager tough questions. Recognize that Microsoft`s cloud transformation also influences how it handles corporate contract renewals.
The creditor still had a very structured hierarchy for approving exemptions to standard prices, conditions and licences. Today, Microsoft wants to continue to standardize these practices through its online terms of service. A single standard sentence replaces documents with multiple product usage rights for online services. This approach may be beneficial for Microsoft, but it can be a problem for you and your unique user environment. Microsoft`s mission is to transfer its customers within the traditional on-premise software company to its subscription-based cloud services. Revenue from its cloud commercial offerings is growing strongly, while traditional software sales are declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success will be measured against the success of this mission, and customers will be under increased pressure to travel to the cloud or to pay for on-prime-price solutions through increased contract and price complexity. Most customers have managed the jump to 365 and are experimenting with azure.
The good news is that the window of agreement for new cloud editions with Microsoft is still open. As a public company, Microsoft`s mission is to accurately predict revenue. To do this, the company must have a clear overview of its sales pipeline and be able to close purchases and renewals faster and earlier in the quarterly sales cycle. There are a limited number of legal resources and license desks to process these transactions, and it is almost impossible to process paperwork less than two weeks before a calendar year, fiscal year or end of the quarter. Managing these largest volumes in deal volume is a challenge for Microsoft`s operations, and delays in this pipeline can have a domino effect on quarterly and annual revenue, share price and overall market perception. Customers should use the supplier`s desire to prevent purchases and extension periods accordingly. Contrary to popular opinion, Microsoft may be more flexible in negotiations outside of their peak sourcing periods. The only other way you can get around this unfortunate situation is to start early and take the negotiations seriously as quickly as possible.
