Miro can review an organization’s Microsoft contracts (newly proposed and current) to determine:
- Scope of Licenses involved
- Negotiated, measurable limitations
- Shortfalls that must be addressed
- What is standard language vs. what can be negotiated
- Best terms and conditions
- Best way to invest in Microsoft products – the agreements that are most suitable
If your organization is looking to enter into a new Microsoft contract and need help identifying the best type of purchase arrangement that suits your current and future needs, then Miro can help guide you. This is useful when looking to enter into a new agreement, trying to choose whether or not to renew or when trying to plan for any challenges that may be experienced as a result of merging, divesting, or acquiring a new entity.
Contact us to learn more about how our contract review and negotiations services can support your organization stay compliant and achieve the best possible pricing, terms and conditions.
Microsoft Contract Information
License Procurement Options
Once you better understand the needs of your current or near- future environment, you may need to acquire additional licensing. Fortunately, there are more purchasing options today than have ever existed before. Unfortunately, Microsoft may steer you towards agreements and products that suit them best versus having your best interest at heart.
Obtaining a Microsoft Software License
Purchasing (Considered a “Perpetual” license)
This consists of buying a license through Microsoft or a Microsoft License Solution Provider (formerly a “LAR” or Large Account Reseller). However, it is important to note that a software license is a ‘right-to-use’ product. You do not own software from a vendor; you own the ‘right-to-use’ the software in a very specific way. You own this right even if you choose not to include Software Assurance. Support is considered a purchase right as opposed to a Software Assurance benefit. However, the right-to-use for a subscription – be it on-premise or cloud-based – only lasts while the subscription is in effect.
Microsoft License Acquisition Options (Contract Options)
The obvious desire of most Microsoft customers is to get the best possible price. However, it is also critical to ensure flexibility – that is, that any options meet your current and future needs. These options can often dramatically affect an organization’s cost of Microsoft ownership, so they shouldn’t be taken lightly. It is always important to position yourself with the most options for the evolution of your organization’s needs.
In most cases, it is not possible to know exactly what a company will need to do with their licensing in the future, which is why you should avoid locking yourself into a single path. Again, flexibility.
Microsoft Contract & Subscription Types
Cloud & Azure
Many companies are developing “Cloud First” strategies. A cloud-first strategy is an organizational commitment to evaluate cloud-based solutions before considering other alternatives. Unlike a cloud-only strategy, it doesn’t entirely eliminate other solutions, allowing for greater flexibility. Cloud first doesn’t mean “cloud only.” This is a sounder approach than simply assuming that all business solutions will move to a Cloud platform. Whether or not a solution should be run from an on-premise environment or from the Cloud depends upon the specific business and functionality requirements of the solution.
- Can be quick and easy to create a new server
- No need to worry about hardware upgrades
- Can be less expensive than on-premise solutions
- Security is generally thought of as more thorough solution as typically found on-premise
- It can be more expensive than on-premise solutions
- The process of migrating workloads to the cloud can drain significant time, energy and resources
- Telecommunication costs can be higher
- Security can be a concern
- May not meet regulatory compliance standards
Overall, there are many good reasons to leverage a Cloud solution, but it is important to see it as just another consideration along the path of implementing a new solution for your organization.
Renewal or Not – Not a Straightforward Question
Typically, an Enterprise Agreement includes a three (3) year term. But this is very negotiable. Longer terms can be had, but there are caveats to virtually any term. Among these are “sticker shock”. The Enterprise Agreement acts as a price hold when the agreement is written. So the prices that would be paid, say, for True-Ups or for Step-Ups, would have already been pre-determined. When the renewal comes, these price points can rise significantly – sometimes as much as 35%. And even if only Software Assurance is being renewed (versus the product’s right-to-use and Software Assurance), the cost is based on the product’s cost that is as much as 35% higher!
There are also three (3) year terms associated with the other agreements from Microsoft, including the Enterprise Subscription Agreement or the Microsoft Products & Services Agreement (formerly the Select or Select Plus agreements). But these are for the right-to-use and for Software Assurance, respectively. There is also the Server & Cloud Enrollment that, for the right reasons, could be of benefit to an organization. And these are for commercial organizations!
There are also separate agreements (and price points) for Government, Educational, and Charitable organizations. Which you are eligible for and in what manner you invest in Microsoft products and services can be navigated by a Microsoft licensing expert like Miro. Miro has a number of offerings – one of which will fit your organization’s needs, from a License Position Assessment to Negotiation Support to our Second Opinion Service.