Modernize Your Microsoft Licensing for the Cloud Era
- Microsoft licensing is complicated. Often, the same software can be licensed a number of ways. It’s difficult to know which edition and licensing model is best.
- Licensing and features often change with the release of new software versions, compounding the problem by making it difficult to stay current.
- In tough economic times, IT is asked to reduce capital and operating expenses wherever possible. As one of the top five expense items in most enterprise software budgets, Microsoft licensing is a primary target for cost reduction.
Our Advice
Critical Insight
- Focus on needs first. Conduct a thorough needs assessment and document the results. Well-documented needs will be your best asset in navigating Microsoft licensing and negotiating your agreement.
- Beware the bundle. Be aware when purchasing the M365 suite
that there is no way out. Negotiating a low price is critical, as all
leverage swings to Microsoft once it is on your agreement.
- If the cloud doesn’t fit, be ready to
pay up or start making room. Microsoft has drastically reduced discounting for on-premises
products, support has been reduced, and product rights have been limited.
If you are planning to remain on premises, be prepared to pay up.
Impact and Result
- Understand what your organization needs and what your business requirements are. It’s always easier to purchase more later than try to reduce your spend.
- Complete cost calculations carefully, as the cloud might end up costing significantly more for the desired feature set. However, in some scenarios, it may be more cost efficient for organizations to license in the cloud.
- If there are significant barriers to cloud adoption, discuss and document them. You’ll need this documentation in three years when it’s time to renew your agreement.
Modernize Your Microsoft Licensing for the Cloud Era Research & Tools
Besides the small introduction, subscribers and consulting clients within this management domain have access to:
1. Modernize Your Microsoft Licensing Deck – A deck to help you build a strategy for your Microsoft licensing renewal.
This storyboard will help you build a strategy for your Microsoft licensing renewal from conducting a thorough needs assessment to examining your licensing position, evaluating Microsoft's licensing options, and negotiations.
- Modernize Your Microsoft Licensing for the Cloud Era – Phases 1-4
2. Microsoft Cloud Products Cost Modeler – A tool to model estimated costs for Microsoft's cloud products.
The Microsoft Cloud Products Cost Modeler will provide a rough estimate of what you can expect to pay for Office 365 or Dynamics CRM licensing, before you enter into negotiations. This is not your final cost, but it will give you an idea.
- Microsoft Cloud Products Cost Modeler
3. Microsoft Licensing Purchase Reference Guide - A template to capture licensing stakeholder information, proposed changes to licensing, and negotiation items.
The Microsoft Licensing Purchase Reference Guide can be used throughout the process of licensing review: from initial meetings to discuss compliance state and planned purchases, to negotiation meetings with resellers. Use it in conjunction with Info-Tech's Microsoft Licensing Effective License Position Template.
- Microsoft Licensing Purchase Reference Guide
4. Negotiation Timeline for Microsoft – A template to navigate your negotiations with Microsoft.
This tool will help you plot out your negotiation timeline, depending on where you are in your contract negotiation process.
- Negotiation Timeline for Microsoft – Visio
- Negotiation Timeline for Microsoft – PDF
5. Effective Licensing Position Tool – A template to help you create an effective licensing position and determine your compliance position.
This template helps organizations to determine the difference between the number of software licenses they own and the number of software copies deployed. This is known as the organization’s effective license position (ELP).
- Effective Licensing Position Tool