MICROSOFT EA Optimisation & Negotiation
A €2,5 billion specialised industrial service provider was struggling with:
1. Exiting out of a multiyear Group frame-agreement (due to divesture of customer from one of the biggest conglomerates in Netherlands) while impending expiration of their Microsoft Enterprise Agreement
2. Substantial Microsoft price increases over the previous three years
3. Need to downsize commitments while maintaining critical technologies
4. Risk of budget-breaking cost increases without corresponding value
5. Limited internal expertise to counter Microsoft's negotiating position
Objectives
1. Mitigate pricing impact Develop strategies to counter Microsoft's significant price increases without compromising essential technology capabilities.
2. Align technology with business needs Ensure all licensed products directly supported operational requirements and strategic business objectives.
3. Optimise licensing structure Identify and eliminate unnecessary licenses while ensuring compliance and appropriate coverage.
4. Strengthen negotiating position Leverage market insights and licensing expertise to create negotiation leverage against Microsoft's standardised approach.
5. Create sustainable budget framework Establish a predictable, manageable cost structure for Microsoft technologies aligned with organisational financial constraints.
Implementation Approach
Azure consumption analysis
We implemented detailed Azure usage monitoring and right-sizing methodologies to eliminate waste and implement appropriate reservation strategies.
Licensing assessment and optimisation
We conducted a comprehensive review of the entire Microsoft estate, identifying redundancies, usage patterns, and optimisation opportunities across the technology stack.
Strategic negotiation framework
We developed a structured negotiation playbook leveraging market intelligence and licensing expertise to counter Microsoft's standardised pricing approach.
Technology stack rationalisation
We organised targeted workshops to precisely determine actual technology needs versus current licensing, with particular focus on Microsoft 365, Dynamics 365 , and Azure services.
Bill of Materials optimisation
We created an optimised licensing structure that precisely aligned with business requirements while eliminating unnecessary expenditure.
Commercial strategy development
We formulated comprehensive negotiation tactics designed to exploit Microsoft's priorities and program structures to maximise client advantage.
Outcome
Budget protection
Successfully mitigated the extreme price increase that initially threatened to derail the technology budget. From a 110% (threated) TCO increase due to transition from GROUP D to GROUP B discounts, the customer only occurred an increase of 13%
Optimised technology investment
Eliminated unnecessary licenses while maintaining all essential capabilities required for business operations. Reduction of more than 30% of E3 licenses.
Enhanced negotiating leverage
Achieved commercial terms that significantly outperformed industry benchmark data through strategic positioning and licensing expertise. Moreover, the engagement with Microsoft transformed from vendor-dictated to strategically balanced, creating a foundation for more equitable future negotiations.
Cost-aligned technology roadmap
Established a sustainable framework for future Microsoft investments that balanced technology requirements with budget constraints.