How to LOWER COSTS with CSP Regional Pricing Differences

CSP Regional Pricing Differences??

CSP vs EA?

There are already cases where CSP is cost efficient over an enterprise agreement, and especially in the level A, level B type region for enterprise agreement customers - It is wise to consider CSP as it might be cheaper for you. However, you must think about "Do I want the support from my partner?" "Do I want to remove this direct link with Microsoft that I have through my EA?" You will obviously still have your account team, but support is handled differently if you choose CSP. So are you ready for that? Do you want that? But if the answer is yes, then you might be better off by going to CSP, in certain cases. ?

Leveraging LOCAL Rates?

Choosing an EA limits one’s invoicing possibilities while in CSP it is possible to contract and get invoiced locally. That might be interesting to multinationals that must deal with holding tax, for instance, and want to purchase locally rather than on a centralised scale.??

Example?

In the past one was able to buy in Norwegian krona instead of euros because the Norwegian krona prices for Microsoft was way more advantageous than the euro price list because of the favorable exchange rate. And you could hedge that against the euro and be much cheaper than you are by purchasing the licenses just in euros. However, one would need a partner that is present both in the Norwegian region and in the Euro region to have this option.??

Benchmark YOUR CSP Pricing?

You should benchmark your CSP pricing and take advantage of available information. Partners often ask for outrageous margins. They might even be able to purchase it themselves in a favorable currency (e.g. Norwegian Krona) and charge you the standard, more expensive currency (e.g. Euros). By checking which price list is favorable to them, they are able to purchase it in that price list while charging you a more expensive price list. So always do your homework, ask for multiple quotes, even ask for multiple quotes in different regions, and then take your pick on where you want to do this. If you don't want to disturb your partner relationship, check if they are already doing this and if so, if you can benefit from this as well.??

?In this image, examples of prices in European currencies can be seen. 3 services are used as points of comparison: M365 E3, Business Central Essentials, and Power BI Pro. Using the available exchange rates, one can recognise that the Euro price list price list is currently attractive. However, make sure you practice due diligence when purchasing CSP. If you are in Norway, Sweden, Switzerland or Denmark and you have a partner that also has a presence in a Euro country, then you might request to not buy and pay in Norwegian Krona, but instead ask to be charged in Euros.?

Simply put, always do your research to make sure you are getting the best price for the services, especially if you are a multinational or can leverage your partner's regional pricing. Do you need help analyzing your options? Reach out to LicenseQ through LinkedIn or email ([email protected]), watch our educational YouTube videos, or check out our website!