Microsoft Enterprise Agreement Subscription Benefits
Microsoft has long offered the Enterprise Agreement (or « EA »), a three-year licensing system for organizations with 250 or more desktop computers that provides free software upgrades during the term of the agreement and an indefinite license for the software after the agreement expires. In recent years, Microsoft has added an additional licensing system called « Enterprise Subscription » for organizations that don`t necessarily need perpetual licenses. This agreement also has a three-year term and software upgrades, but includes an open-ended license that expires at the end of the period. There are more and more licensing and subscription optimization challenges that need to be addressed in transactions with Microsoft, as well as new costs, flexibility, and licensing/subscription opportunities that you can take advantage of. As Microsoft continues its metamorphosis and business budget and usage requirements change rapidly, customers should prepare for a more demanding purchasing and supplier management environment. A clean home before you renovate. It is not uncommon for a significant portion of licenses and/or subscriptions to be inactive or underused, even in environments that are carefully managed. According to Microsoft, the Enterprise Agreements program offers powerful benefits to companies that use more than 500 PCs. Companies are less likely to use the combined solutions or move completely to a cloud environment, i.e. EA`s agreements no longer meet the requirements. Microsoft`s mission is to move its enterprise customer base from traditional on-premise software to its subscription-based cloud services. Revenue from cloud commercial offerings is growing significantly, while traditional software sales are declining and mixing is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success is measured by how it accomplishes this mission and customers will be under increased pressure to move to the cloud or pay the price through greater contractual and price complexity for on-premise solutions.
Most customers have made the leap to 365 and are experimenting with at least Azure. The good news is that the agreement window is still open for all new cloud editions with Microsoft. Changes in the current business climate, combined with Microsoft`s mission to move businesses to the cloud, are changing the way the company does business with its largest customers. Companies considering renewing their corporate agreements or acquiring vendor offerings for the first time can use the strengths driving Microsoft`s behavior at the bargaining table. Over the years, Microsoft`s EA has been a popular solution for many companies. Its appeal lies in the fact that companies can grant their agreement by granting licenses. The main difference between the Microsoft Enterprise Agreement and Microsoft Enterprise Agreement subscription programs is that, in the former, the license is acquired for permanent purposes and the latter only accepts use of the licensed software for the duration of the agreement. Thus, the enterprise agreement is essentially the acquisition of software products by installments, while the subscription of enterprise agreement is appropriate for organizations that prefer to rent software on profitable terms and make an annual payment for its use. . .
.