Over the years, Microsoft`s EA has been a popular solution for many companies. Its appeal came from the fact that it allowed companies to add licenses to their agreement while they go. Transparency in what makes a fair price for Microsoft`s offerings is the first step towards reducing EA`s costs. But that`s only half the fight. To effectively reduce costs, customers need to understand how their individual business requirements meet standardized conditions (especially for cloud offerings), dozens of license/subscription swaps, and the options available to them. As there are more options available, it is important that customers understand which licensing and subscription programs best support their technology, business and cost management requirements. and details of compliance and costs associated with migration from current states to future countries. In addition, companies need to understand where Microsoft is willing to be flexible, because it refers to the conditions of price protection and use elasticity, especially in the midst of economic volatility, and negotiate these conditions accordingly in their EA. For more information on ABT`s cloud services, check out the award-winning MortgageWorkSpace app, used by Microsoft 365 for mortgage companies.

In Microsoft`s case, they have certified CSP partners that offer subscription-based MS applications under the name Software as a Service (SaaS), although the company`s traditional business model uses EAs. As cloud services become the norm in the technology industry, the 3-year EA is starting to become obsolete, even for the most traditional companies, such as large mortgage companies and financial institutions. Alternatively, the customer can sign a purely enterprise online service contract with Microsoft. This option does not require company-wide standardization. Customers must acquire at least 500 Enterprise online service licenses. 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.

While the vendor`s cloud offerings may be the future of its business, most Microsoft customers are still operationally and contractually blocked in on-premise deployments. With the advent of the cloud, a new option for acquiring software on the market has emerged. This new type offers flexibility and adaptation on the move. It purports to allow companies to make purchases as needed with short-term contractual terms. It is also fully based online. For years, the licensing tool for businesses has been the Microsoft Enterprise Agreement (EA). Companies could source directly from Microsoft, which meant they were looking after the most reliable provider available. With the minimum amount of 500 Microsoft users, an EA was ideal for large organizations.

The typical 3-year EA period naturally corresponded to the cycles of large organizations that move methodically during system migrations.