Gartner Research

How Adopting Office 365 Will Impact Your Global Microsoft Licensing Strategy

Published: 31 March 2016

ID: G00292785

Analyst(s): Adam Preset , Stephen White

Summary

Microsoft's global pricing strategy varies by location and now by product or service. Adopting Office 365 shifts price deltas significantly, and requires more technical stakeholder input. Technology procurement leaders must review their global approach when adopting Office 365 to realize benefits.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Microsoft operates a globally differentiated price book, which now varies significantly by product or service, so the extent to which technology procurement leaders can leverage benefit for their organizations may change considerably when adopting Office 365
    • International Procurement of Microsoft Licensing
    • What's Changed — Price Book Deltas Now Vary Significantly by Product
    • Price Changes by Geography
  • Microsoft's Office 365 architecture and policies introduce additional parameters that technology procurement leaders must account for when contracting with Microsoft globally to underpin the appropriate tenant location and structure
    • Importance of Choosing Tenant Location and Structure
    • Data Trustee Model for New Microsoft German Data Centers
  • Agreement structures are not alike for global operations and require technology procurement leaders' evaluation to establish best fit with changing global license allocation demands as the organization evolves
    • Enterprise Agreement May Be Your Default Option
    • Microsoft Products and Services Agreement Provides an Alternative
    • Open Licensing May Suit Smaller or Mode 2 Requirements

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