How Does Microsoft Enterprise Agreement Work

Organization-wide Open Value is a transaction agreement. Software Assurance is included and mandatory. There is a hierarchy of documents, the “priority of documents”. For example, note that the most important Microsoft compliance audit terms are defined in MBSA. License agreements under the MBSA umbrella may extend, clarify or replace them. Unlike EA, which has a minimum number of users or 500 devices, CSP is much more flexible with the number of devices and users you can have under the agreement, making it ideal for small businesses. Once the contract is signed, the real work begins. Be sure to keep complete records of all documents and communicate to all stakeholders what has been achieved and the benefits of the agreement. Make sure your company has a simple deployment and usage plan for the duration of the contract. In addition to perpetual licenses, a subscription option is available that gives you more flexibility when retiring, consolidating, or migrating workloads to the cloud. This is unique to SCE and has proven useful in today`s dynamic environment across all sectors. Microsoft Cloud Agreement (MCA) is a transactional licensing agreement for commercial and government organizations that want to completely outsource the management of their cloud services through a cloud solution provider (CSP). The availability of subscription licenses alongside perpetual licenses provides maximum flexibility during cloud and digital transformation.

You can better plan your licensing and cloud costs. Decide how many licenses you want to keep locally, how many you need for BYOL, and how many you want to delete, consolidate, and retire. Then plan your SCE license acquisitions and renewals accordingly. Do you need a license for a temporary workload? No problem, order a subscription and cancel it when it is no longer needed, all at discounted prices. But it is also an opportunity to negotiate, for both parties. And if you had something special during your previous term, you can`t guarantee that this discount or feature will carry over to the new period. This is a completely new agreement. Verbal commitments and promises – all in writing. Although this tactic is disappearing, we still see promises from account managers that are not supported in the formal contract. Make sure any verbal or written promises are included in the final contract. If it is not in the agreement, it does not exist.

If you need a license without Software Assurance, you will need to choose another contract such as MPSA, CSP or Open. Please be careful. Please remember that you must order the promised products (“Platform Products” or “Enterprise Products”) through the Enterprise Agreement. Existing licenses and other agreements. Signing an SCE can invalidate the investment in perpetual licenses and render server subscriptions unusable through, for example, Microsoft CSP. You need to assess the impact, implement a mitigation strategy, and use the result of the analysis in your negotiations with Microsoft. Inability to streamline and optimize discounts. Microsoft does not offer discounts based on size and who shouts the loudest. It is a combination of presenting precise and sustained justifications to support your “desires” and understanding how Microsoft works.

If you have a subscription contract, it`s obvious. If you wish to continue using the products, you will need to log in again. Simple. But why would you want to renew a non-subscription if you end up with unexpired licenses? The Microsoft Enterprise Agreement and the Microsoft Enterprise Subscription Agreement are binding-based license agreements for commercial organizations that sign a new enrollment with 500 or more users/devices* and government organizations with 250 or more users/devices. These contracts are best suited for organizations that want to license on-premises Microsoft software and cloud services enterprise-wide, over a three-year period and at the best available price. MLS does not include all the license information needed to calculate an accurate rights ratio: transaction data contains raw data showing each license purchase. This includes the company that acquired the license, the agreement by which it was acquired, the number of licenses purchased, the type of license – license and SA, SA only, standard (license purchases only), subscriptions, etc. – the reseller through which it was purchased and the country of use. Keep in mind that OEM, ISV, SPLA, CSP, and MPSA purchases are not included.

Microsoft licenses and contracts for large enterprises are at best difficult to decipher for business, IT, and procurement stakeholders. Educating stakeholders about all of Microsoft`s license/subscription permutations and the detailed nuances of the different options is a difficult task. There are thousands of SKUs, they change frequently, and usage rights vary, and the most appropriate contractual options evolve. While IT procurement professionals are at the heart of Microsoft contracts and negotiations, most lack the bandwidth to become experts in all aspects of Microsoft purchases (specifically, licensing and subscription options and their consequences). However, for IT procurement, it is useful to have a working knowledge of how Microsoft`s enterprise products are licensed, i.e. the contract vehicles available and the high-level mechanisms of each. This guide is designed to help enterprise IT procurement professionals better understand “Microsoft contract jargon” so they can come to the purchasing and renewal table better informed. The EA includes subscription options that reduce upfront licensing costs because customers have chosen to subscribe rather than own the rights to use Microsoft products and services.

The subscription option also allows customers to increase or decrease the number of subscriptions on an annual basis. Although it sounds very formal, there is flexibility. Here`s why: The registration agreement structure allows you to easily add new products and services as needed. This rule does not apply to licenses and services ordered later or to catch-up orders. They charge a full upfront fee. EA is a so-called “future” agreement. If you sign it today, it will take three years. You can extend it for another three years, but it is usually a three-year agreement.