Long-term Microsoft certainty for a global consumer goods group
Long-term Microsoft certainty for a global consumer goods group
Microsoft Enterprise Agreement Renewal
Industry: Consumer Goods
Company size: ~25k users
Location: Global
Service: Microsoft Optimization and Negotiation
Result: 5 Years Price Certainty
Executive summary
A global consumer goods group operating across multiple continents was undertaking a significant business transformation. Alongside organizational restructuring, it was modernizing workplace technology, planning a large-scale Azure migration, and exploring Microsoft Copilot adoption. However, its Microsoft agreements were fragmented across operating businesses, creating inconsistent pricing, varying contract terms, and limited visibility over future costs.
Livingstone helped the organization bring its Microsoft estate under a single commercial strategy, delivering long-term pricing certainty, competitive discounts across Microsoft 365, Azure, and Copilot, and a contract structure designed to support future growth through acquisition.
The Challenge
The organization supported more than 25,000 users across multiple Microsoft tenants while also managing substantial Azure spend.
Over time, Microsoft agreements had evolved independently across different operating businesses. This resulted in:
- Multiple contract structures, discount levels, and renewal timelines.
- Limited visibility of total Microsoft spend across the group.
- Inconsistent licensing approaches between user populations.
- Uncertainty around future Azure costs as cloud migration accelerated.
- The need to adopt AI capabilities without committing to large volumes of Copilot licenses upfront.
- Senior leadership required long-term commercial certainty and flexibility to support future acquisitions.
The business needed a unified strategy that would optimize current investments while creating a scalable framework for future growth.
The Solution
Livingstone conducted a comprehensive review of the group’s Microsoft estate, commercial arrangements, and future technology roadmap.
Key activities included:
Global Agreement Assessment: We consolidated and analyzed existing agreements, pricing structures, and discount levels across all operating businesses, creating a clear picture of the group’s Microsoft investment and commercial position.
Licensing Optimization: We profiled and segmented user populations, distinguishing knowledge workers from frontline employees to ensure each group was assigned the most appropriate, cost-effective licensing model.
AI and Copilot Planning: We assessed anticipated demand for Microsoft Copilot and developed commercial scenarios that would allow the organization to scale AI adoption without significant upfront commitments or unnecessary risk.
Unified Negotiation Strategy: Rather than negotiating workplace products, Azure, and AI separately, we created a single negotiation strategy that combined all elements of Microsoft’s portfolio, strengthening the group’s commercial position.
End-to-End Negotiation Support: Livingstone supported the organization throughout the entire Microsoft engagement process, from strategy development and commercial modeling through to final negotiations and agreement execution.
The Outcome
The engagement delivered significant commercial and operational benefits across the global organization.
Long-Term Commercial Certainty
The group secured:
- Five years of price certainty for workplace products.
- Three years of price certainty for Azure consumption.
- Commercial terms benchmarked against leading enterprise agreements.
Optimized Copilot Adoption
The organization achieved:
- Competitive Copilot pricing and discount levels.
- Minimal upfront commitment requirements.
- Flexibility to scale AI adoption as business demand evolved.
Global Contract Standardization
The organization established a single contract structure and discounting model across the group, simplifying governance and creating consistency across operating businesses.
The agreement also included provisions to integrate future acquisitions, ensuring new businesses could join the framework without separate negotiations.
Azure Cost Optimization
The organization secured:
- A benchmarked Azure consumption discount.
- A three-year commitment structure.
- A 12-month rollover provision to provide greater flexibility and reduce consumption risk.
Reduced Delivery and Commercial Risk
Microsoft co-investment was secured to support implementation activities, reducing delivery risk while limiting exposure to shelfware and double licensing during transition.
Future
Securing a major enterprise agreement is only the beginning. Real value comes from ongoing governance, optimization, and commercial management. Following the negotiation, the organization transitioned to Livingstone’s continuous management service. This ongoing engagement provides:
- Licensing and contract management advice.
- Microsoft 365 governance and optimization.
- Copilot adoption and governance support.
- Azure FinOps and consumption management.
- True-up readiness and compliance assistance.
- Mid-term negotiation support.
- Strategic planning and preparation for future renewals.
This approach ensures the organization continues to maximize value from its Microsoft investments while maintaining control over costs, risk, and future growth.
Need support with your Microsoft renewal?
