Subscribe to Microsoft licenses: how to negotiate with the enemy
It is not easy for companies that work with licensed software from Microsoft. The fact is that the standard license renewal (and it is usually carried out on July 31) is not an easy task. The terms of Microsoft licenses are so complex and cleverly compiled that independent analysts, who then sell their analytical reports for money, specifically analyze them.
The report's authors emphasize that the terms of the Microsoft licenses are accompanied by “unique terminology, a complex price structure, and a rapidly changing product line,” which “can confuse unprepared licensees”. For such a case you need to carefully prepare.
In general, there are four main things to consider when renewing licensing contracts with Microsoft.
Microsoft subscription terms are aggressive and not always fair.
Unfair in the sense that justice for you and justice for Microsoft are two different things. They consider it fair that you pay a license for each job. Many firms tend to underestimate the number of compatible jobs when negotiating, but in this case you can lose some important discounts.
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Experts recommend indicating absolutely all jobs as compatible and negotiating from a position of strength.
Subscription at the last moment may not be economically justified.
Some companies are too unorganized or wait for a long time on purpose to unleash Microsoft for better terms. But time plays against both sides. The report says that individual representatives of Microsoft "may even try to use deadlines against you, forcing you to agree to unfavorable conditions, because you do not have the opportunity to wait or postpone an important project."
Be smart. Plan ahead, but without hostility to the enemy. No need to throw their applications, which are made with artificial complexity. Experts recommend setting the process up so that Microsoft makes mistakes, not you.
Microsoft wants to make you buy as much as it needs
Most businesses upgrade every three to five years. But such a system is economically unprofitable for Microsoft. They want to profit from annual contracts, and this means that it is more profitable for them to enter into an annual subscription such as Software Assurance or an Enterprise Agreement.
In the first case, you will be required to pay additional annual fees (+ 29% to the cost of software for desktops and + 25% to the cost of server software), usually for three years. Here the tipping point is 3.5 years. If you are going to use the software for more than three and a half years, then it is more profitable to initially buy it for the full cost.
Microsoft offers additional services for those who have signed up for an annual subscription: this is support and training courses, but this service is not very suitable for companies for whom the first task is to get software at a discount.
Be smart. Buy only the upgrade protection you need.
Microsoft wants to sell you additional services
Both sides win if they start a discussion outside of the standard price list. We are talking about additional services, such as consulting and additional support. For example, if an enterprise migrates to Windows Vista, then Microsoft can offer personnel training services and discount planning software. This saves money.
Here, too, you need to be smart and buy those products that you really need and that Microsoft really wants to sell. For example, Vista is selling very poorly, so this is a good point to start negotiations and possible numerous discounts.
Businesses can also expect favorable discounts from Microsoft if it comes to purchasing SharePoint Server 2007, Windows Server 2008, and Hyper-V.
via Microsoft Watch
The report's authors emphasize that the terms of the Microsoft licenses are accompanied by “unique terminology, a complex price structure, and a rapidly changing product line,” which “can confuse unprepared licensees”. For such a case you need to carefully prepare.
In general, there are four main things to consider when renewing licensing contracts with Microsoft.
Microsoft subscription terms are aggressive and not always fair.
Unfair in the sense that justice for you and justice for Microsoft are two different things. They consider it fair that you pay a license for each job. Many firms tend to underestimate the number of compatible jobs when negotiating, but in this case you can lose some important discounts.
')
Experts recommend indicating absolutely all jobs as compatible and negotiating from a position of strength.
Subscription at the last moment may not be economically justified.
Some companies are too unorganized or wait for a long time on purpose to unleash Microsoft for better terms. But time plays against both sides. The report says that individual representatives of Microsoft "may even try to use deadlines against you, forcing you to agree to unfavorable conditions, because you do not have the opportunity to wait or postpone an important project."
Be smart. Plan ahead, but without hostility to the enemy. No need to throw their applications, which are made with artificial complexity. Experts recommend setting the process up so that Microsoft makes mistakes, not you.
Microsoft wants to make you buy as much as it needs
Most businesses upgrade every three to five years. But such a system is economically unprofitable for Microsoft. They want to profit from annual contracts, and this means that it is more profitable for them to enter into an annual subscription such as Software Assurance or an Enterprise Agreement.
In the first case, you will be required to pay additional annual fees (+ 29% to the cost of software for desktops and + 25% to the cost of server software), usually for three years. Here the tipping point is 3.5 years. If you are going to use the software for more than three and a half years, then it is more profitable to initially buy it for the full cost.
Microsoft offers additional services for those who have signed up for an annual subscription: this is support and training courses, but this service is not very suitable for companies for whom the first task is to get software at a discount.
Be smart. Buy only the upgrade protection you need.
Microsoft wants to sell you additional services
Both sides win if they start a discussion outside of the standard price list. We are talking about additional services, such as consulting and additional support. For example, if an enterprise migrates to Windows Vista, then Microsoft can offer personnel training services and discount planning software. This saves money.
Here, too, you need to be smart and buy those products that you really need and that Microsoft really wants to sell. For example, Vista is selling very poorly, so this is a good point to start negotiations and possible numerous discounts.
Businesses can also expect favorable discounts from Microsoft if it comes to purchasing SharePoint Server 2007, Windows Server 2008, and Hyper-V.
via Microsoft Watch
Source: https://habr.com/ru/post/27808/
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