Gartner Research

How Government Procurement Leaders Can Minimize the Impact of Microsoft’s October 2018 Price Increases

Published: 04 September 2018

ID: G00369707

Analyst(s): Stephen White , Marie Sienkowski , Dolores Ianni , Ben Jepson

Summary

Faced with Microsoft’s 3% to 32% price increases effective 1 October 2018, sourcing, procurement and vendor management leaders working for government agencies must take a tactical approach to minimizing their impact by leveraging extension years and using lower SA pricing options where applicable.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Microsoft’s Government Pricing Increases Making Online Subscriptions Relatively More Uniform Across Programs
  • Exercise an Early Commitment to Defer Price Increases or an Extension to Buy Time to Re-evaluate Licensing Positions
  • Government Open Customers Will See the Higher of Program Pricing Up to 20% or Product Increases Up to 32.5%
    • Compare Volume Licensing Options for Program and Price Advantages
    • The From SA Pricing Is Another Compelling Reason to Stay in the EA Program

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