Volume Licensing Vs Enterprise Agreement

When signing the agreement, the customer must define and communicate to Microsoft the number of desktop computers or qualified users as well as Microsoft Enterprise products or Enterprise Online Services. This information represents the first purchase. Each anniversary is due to a „True Up Order” for additional desktops or qualified users, based on which the total cost for the previous year is calculated. Under a traditional agreement on microsoft Enterprise, the customer is allowed to authorize corporate products individually or as a standard platform. However, at least one enterprise product must be standardized throughout the company. A company with 750 employees has partnered with another large company and is looking for ways to reduce costs across all large companies. While they are currently stuck in an EA, they are essentially stuck when they take stock of what is being used and realize that a large part of their employees are not fully using what they are paying for. In this case, an EA can be considered a roadblock that could easily have been avoided with a CSP. With CSP, there is no minimum amount or duration and is the most flexible type of agreement with the ability to increase or reduce licenses immediately. Microsoft has a highly structured hierarchy for approving exemptions to standard prices, conditions and licenses. Salespeople and account managers have little influence on the issue, and decisions are ultimately made at the licensing window, where customer relationships and requirements have little influence.

Microsoft aims to further standardize these practices, which was most evident when the provider released its online terms of service – a standard set of terms that replaces its many product use documents for online services. While Microsoft was scratching the benefits of a more centralized and simplified approach to contract documentation, the reality is that these measures prevent customers from obtaining concessions from Microsoft based on their unique user environment. The Microsoft Enterprise deal has always been a potential hot spot for over-spending – and this is more true today than ever before. The volume of subscription and licensing opportunities for Microsoft`s offerings is overwhelming. EA`s renewals and initial negotiations have never been more complex. And a volatile business climate has increased new tax pressures for both customers and Microsoft. The enterprise agreement, which is priced at the number of computers or licensed users, is a three-year contract covering all software licenses and customer system updates. If the contract is terminated, an extension of one or three additional years is granted. The EDOS program is ideal for large companies and government organizations with more than 5,000 users.