Microsoft License Procurement Tips

Some tips and tricks (of many – I need a job so can't publicise all) that can be done when sourcing Microsoft licensing:

• EA is NOT always cheaper than CSP and MPSA – break even varies though <5000 users CSP/MPSA is often cheaper so use a hybrid approach and compare all agreements
• Compare vendors if your using a CSP and MPSA as both involve margin and other sourcing methods/costs
• If you have a global presence you can source agreements through those countries, so you should be comparing them all, use a global partner to do this automatically
• When shifting from processor to core licensing if you owned the previous processor licenses you are entitled to the difference in numbers if you can provide the data to Microsoft (free solution called MAP can gather this)
• If certain license thresholds are met the “server and cloud enrolment” model on an EA can be used which is often cheaper
• Use EA licensing where applicable to price lock over the contract
• Weigh up the price difference on CSP/MPSA vs an EA in relation to the ability to price lock based on number of licenses and time of ownership/use required
• Understand what step ups, downs, from SA etc. licensing you are eligible for from the start, these are most likely cheaper routes
• Conduct an analysis of your current estate and user requirements, make sure what you are purchasing is actually what you need
• Utilise the flexibility of CSP to scale your licenses in comparison to bulk on an EA or MPSA
• Utilise CSP to reduce initial capital expenditure as this is a monthly cost (it can be done upfront if wanted though)
• Make the most of hybrid use benefits, license mobility and reserved instances to reduce spend
• Direct EAs through partners are fixed pricing from Microsoft and in-direct EAs can have margin added
• Compare differences in price banding as it may sometimes be cheaper to over purchase
• Digital Partner of Record can be utilised in negotiations as this provides funding to the partner via Microsoft based on consumption
• Use a partner who has large experience in these areas to negotiate discounts with Microsoft as they know the ins and outs and how Microsoft is incentivised on the agreements
• Use a partner who will provide additional IPs around your Microsoft estate, they can be offered to “sweeten the deal” and further optimise your estate after the agreement has been done
• Understand the partners plan to continue optimising the estate moving forward and how to best utilise the technology your obtaining

This is only a few out of many things I would do, I can’t say all the tricks of the trade or I would be out of a job and my competitors would know how to do everything it but should shed some light on what can and should be done.

I hope this article shows the value of myself and the No.1 Microsoft LSP in EMEA SoftwareONE when it comes to your Microsoft licensing, it can be much more complex than most think.

If you have questions or want advice on your renewal let me know: Chris.Allen@SoftwareONE.com or call me on 0208 515 0458

More than happy to help you do the below