Monday, October 14, 2013

New Microsoft Negotiation: Get It Done Early


by Joseph B. Kappernick


2013 is a year of many changes in the IT industry. IT expenses are bound to increase significantly, which is something enterprise should prepare for. Enterprises are definitely going to pay more to IT vendors and there's very little they can do about it; especially in the technology-driven world. After all, software vendors have to look out for their businesses too.

Microsoft is one of the vendors that are making a lot of changes this year when it comes to licensing policies. And if you're currently using Microsoft EA, it's time that you know more about the negotiation strategy. So, what about it?

* Getting Early Renewals- Microsoft is adamant in getting more early renewals to avoid spillovers in 2013. The problem is, customers are putting off license renewal at a later date. Of course, consumers aren't really worried about making the Q4 of the fiscal year. So, Microsoft is making a move to encourage customers to renew earlier.

* Forecasting Revenues- Microsoft sales representatives are under great pressure to come up with accurate revenue forecasts. Microsoft wants to have a solid idea on how much they'll earn if there are more on-time renewals.

* Sticking to Standard Pricing and Licensing- Microsoft isn't bending when it comes to licensing practices and standard pricing. Due to this, more customers are having a difficult time receiving concessions from the company.

So, how should you deal with Microsoft EA license negotiation? The first thing to do is renew the license as early as you can. When you do that, the Microsoft staff will most likely give you better offers on prices and maybe some discounts too. This is one way to entice customers to renew their licenses early on. Next, you must educate yourself on the licensing options they are offering.

The expenses that come with licensing renewal can still be monitored if you prepare early. During the midterm, Microsoft will perform soft audits and true-ups so take this chance to monitor the licenses you are paying for.




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