Gartner Research

Don't Sign a Microsoft Enterprise Agreement Before Trying These Lucrative Negotiating Tactics

Published: 30 December 2014

ID: G00271288

Analyst(s): Dolores Ianni, Stephen White

Summary

Microsoft will negotiate concessions within an Enterprise Agreement, especially when you apply every leverage point available. IT procurement professionals should use these best practice negotiation techniques to obtain more favorable pricing and terms and conditions for their organizations.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Use Perpetual Licenses as Leverage to Walk Away From Microsoft's Software Assurance
    • Compare Your Upgrade Cycle Against Microsoft's
    • Determine the Impact of Dropping SA
    • SA Can Be Al-La-Carte If Needed
    • Recommendations for IT Procurement Professionals
  • Take Advantage of Competition and Strategic Investments in Online Service Offerings to Improve Your Position
    • Microsoft Furthers Its Cloud First Strategy
    • Use Leverage to Get Better Terms for Future Predictability
    • Business Investment Funds Provide Additional Deployment Opportunity
    • Introduce New Competition, Where Credible, to Improve Your Position
    • Use Switching to an Alternative Product as a Strategic Goal
    • Recommendations for IT Procurement Professionals
  • Fully Utilize Global Pricing Differentials and Contract Timing on Early Renewals and Commitments as a Means to Achieve Better Price Points or Concessions
    • Substantial Savings Can Be Realized by Purchasing Licenses in a Country Where Microsoft Charges Lower Prices
    • First Consider the Effects of Moving the Contract
    • Determining the Price Difference Before Formal Negotiations
    • Year-End and Half-Year Targets Are Key to Timing
    • Be Prepared to Act on Early Commitment Incentives
    • Recommendations for IT Procurement Professionals

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