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.
Key Challenges
• Microsoft ties Software Assurance (SA) benefits to product use rights, which inhibits customer leverage.
• Clients struggle to identify leverage in Microsoft negotiations where there is a high degree of lock-in.
• Lack of price transparency and impartial advice hinder proposal evaluations.
Recommendations
IT procurement professionals must:
• Use perpetual license entitlements as leverage to convince Microsoft that you could walk away from SA when negotiating concessions on price or terms and conditions.
• Take advantage of competitive alternative offerings and strategic investments in online services offerings to improve negotiating position.
• Fully utilize global pricing differentials and critical contract timing on new agreement execution and early renewal commitments as a means to achieve better price points or concessions.