How to Negotiate a Microsoft Enterprise Agreement (EA) That Meets Your Digital Transformation Goals
Microsoft is a global technology company that develops, manufactures, licenses, and sells a wide range of products and services related to computer software, hardware, cloud computing, online advertising, and gaming. Founded in 1975 by Bill Gates and Paul Allen, it is the largest software maker in the world. Its most prominent products include the Windows operating system, the Office suite of productivity software applications, and the Azure cloud computing platform.
The company is also a major publisher of books, movies, and TV shows. Its Movies & TV service lets you rent or buy the latest released films and watch them on any device, anywhere. In addition, its Office 365 business suite of apps and features enable you to stay productive on the go and collaborate more efficiently.
For the past few decades, Microsoft has been written off as a 20th-century phenomenon—fat and content with its Windows monopoly. But under CEO Satya Nadella, the company has turned a corner and re-embraced innovation. It’s now one of the most aggressive tech companies in challenging Google for search supremacy and developing cutting-edge artificial intelligence.
As a result, the company’s stock has been a strong performer in recent years. In the last five years, it has gained over 40% in value and is one of the world’s largest publicly traded companies. However, the company has not been immune to the broader market’s turbulence, with shares still trading below their all-time highs.
The company’s executive team includes the Chief Executive Officer, Presidents and Vice Presidents of various product divisions, and leaders of corporate departments including Law and Corporate Affairs, Finance, Human Resources, and Advanced Strategy and Policy. In addition, the Board of Directors oversees key decisions and provides support and guidance for the company.
A common tactic in EA negotiations is for Microsoft to propose a large first-year discount that will drop significantly in subsequent years. This is especially true for longer-than-three-year Enterprise Agreements.
A well-prepared and experienced IT consultancy can help you avoid this trap. By using a proven negotiation methodology, your IT team can negotiate an agreement that aligns with your digital transformation goals while keeping your budget and financial objectives in mind. For best results, start preparations at least a year before your renewal date. That might seem like a long time, but there are so many moving parts to align that you cannot afford to approach the process without a clear plan. Start early and be ready to act when the time comes to negotiate. This will ensure you have the strongest possible position at the bargaining table.
