Gartner Research

Navigating Mergers, Acquisitions and Divestitures in a Microsoft Enterprise Agreement

Published: 11 October 2019


Sourcing, procurement and vendor management leaders are challenged to manage the impact of mergers, acquisitions and divestitures on Microsoft agreements. Cloud services like Office 365 or Microsoft 365 complicate these efforts. Use these best practices to mitigate cost and avoid shelfware.

Included in Full Research

  • Key Challenges
  • When Negotiating a New or Renewal EA, Negotiate Affiliate and Business Downturn Language to Maximize Flexibility
    • Pay Close Attention to Contract Language About Affiliate Options
    • If MAD Activity Is Likely, Negotiate a Lower Threshold for Good Faith Negotiations or for True-Down Provisions
  • After a Merger, Acquisition or Divestiture, Define New Company Licensing Requirements Before Negotiating New Contract Terms
    • Negotiate Internally and With Microsoft for the Time Needed to Specify Your Licensing Needs
    • Caution: The Enterprise Commitment Does Not Extend to Additional Products
    • Optimize Existing Software Asset Value With Transfers or Through Negotiation
  • Negotiate Key EA Contract Terms Related to Future Migrations of Cloud Subscriptions (and Associated Data)
    • Recognize the Cloud Services Technical Realities That Limit Your Options
    • Eliminate Duplicate Costs by Matching the Online Services Solution to Your Scenario

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