2013 is a year of many changes in the IT industry. IT expenses are bound to increase significantly, which is something enterprise should prepare for. Enterprises are definitely going to pay more to IT vendors and there's very little they can do about it; especially in the technology-driven world. After all, software vendors have to look out for their businesses too.
For enterprises that are using Microsoft EA's, you can't just simply give in to the demands. Educate yourself and know the forces behind why Microsoft EA has come up with a negotiation strategy for license renewal. Here's a quick explanation:
* Spillover Prevention- Consumers renewed their licenses nearing the end of the fiscal year and this isn't something Microsoft wanted. The EA license renewals took place in June mostly so Microsoft is really pushing to get more of the renewals early on. They don't want to prevent any spillover in 2013.
* Accurate Forecasts- Microsoft channel partners and sales representatives are given a new task and it's not to make sales. They are being pressured to forecast accurate revenues due to the need to enforce early or on-time renewals.
* Sticking to Standard Pricing and Licensing- Microsoft isn't bending when it comes to licensing practices and standard pricing. Due to this, more customers are having a difficult time receiving concessions from the company.
The best way to go about this situation is to renew your Microsoft EA license early on. Because doing this will give you a chance to get more discounts on pricing from the Microsoft sales staff. As they want to encourage customers to renew early, they are willing to give incentives. However, do make sure that you're not just sold with such incentives. Know what you're getting into especially with the recent licensing changes.
The expenses that come with licensing renewal can still be monitored if you prepare early. During the midterm, Microsoft will perform soft audits and true-ups so take this chance to monitor the licenses you are paying for.
For enterprises that are using Microsoft EA's, you can't just simply give in to the demands. Educate yourself and know the forces behind why Microsoft EA has come up with a negotiation strategy for license renewal. Here's a quick explanation:
* Spillover Prevention- Consumers renewed their licenses nearing the end of the fiscal year and this isn't something Microsoft wanted. The EA license renewals took place in June mostly so Microsoft is really pushing to get more of the renewals early on. They don't want to prevent any spillover in 2013.
* Accurate Forecasts- Microsoft channel partners and sales representatives are given a new task and it's not to make sales. They are being pressured to forecast accurate revenues due to the need to enforce early or on-time renewals.
* Sticking to Standard Pricing and Licensing- Microsoft isn't bending when it comes to licensing practices and standard pricing. Due to this, more customers are having a difficult time receiving concessions from the company.
The best way to go about this situation is to renew your Microsoft EA license early on. Because doing this will give you a chance to get more discounts on pricing from the Microsoft sales staff. As they want to encourage customers to renew early, they are willing to give incentives. However, do make sure that you're not just sold with such incentives. Know what you're getting into especially with the recent licensing changes.
The expenses that come with licensing renewal can still be monitored if you prepare early. During the midterm, Microsoft will perform soft audits and true-ups so take this chance to monitor the licenses you are paying for.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT expense reduction solution consulting
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