Gartner Research

Mitigate Risk When Subscribing to Microsoft Office 365 by Negotiating Key Contract Terms and Conditions

Published: 17 March 2014

ID: G00260103

Analyst(s): Frances O'Brien

Summary

When contracting for Microsoft's Office 365 in a multitenant offering, Microsoft is still reluctant to negotiate many contract terms and conditions. IT procurement professionals should create a negotiation checklist of critical terms and conditions and determine those that are "deal breakers."

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Develop a Negotiation Checklist of Contractual Protections Required to Mitigate Risk
  • Print Out Any URL Hyperlinks Containing Contract Terms and Conditions and Service Plan Descriptions to Protect Use Rights
  • Negotiate Improved SLA Credits and the Ability to Terminate
  • Lock in Maximum Pricing on Renewals to Avoid Unexpected Costs
  • Negotiate for Price Protection If the Cost of the Service Declines to Avoid Overpaying
  • Understand Where Your Data Is Being Stored and Processed
  • Data Privacy and Security Clauses Still Cause Concern
  • Suspension of Service for Regulatory Reasons Is Still an Issue
  • Negotiate Termination and Data Extraction Clauses
  • Increase Liability Protection
  • Determine the Value of the Services

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