Microsoft Optimization and Negotiation

The right licenses, bought the right way, at the right price. With complete confidence, you got the best deal available.
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Who this is for

Large organizations with a Microsoft Enterprise Agreement renewal in the next 12 to 18 months. We usually work with the CIO, CFO and CPO, and with IT and procurement directors who own the renewal day-to-day.

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The problem with Microsoft licensing at scale

When you have tens of thousands of users, working out what each of them needs is hard. So most organisations buy one suite for everyone. That is a sign the agreement was built for simplicity, not for value. You cannot licence your chief executive the same way you licence a frontline worker.

Microsoft makes it harder still. Products can be bought in suites or as individual components, and the commercial model steers you towards high-value suites. Meanwhile your team gets one chance to negotiate, against a publisher whose full-time job is selling agreements.

How it works: three stages

Establish current and future demand

  • Exit contract assessment: what you have signed, what you pay, your discounts and when they erode.
  • Current state analysis of what you consume today.
  • Business needs analysis with your service owners.
  • Future demand assessment, linked to your technology plans.
  • Pricing models and high-water mark review.

 

Create an optimized bill of materials

  • User profiling, so each group gets what it needs and nothing it does not.
  • Challenge to demand: every request needs a business case that justifies it.
  • A practical number of profiles, so the estate stays easy to manage.
  • Infrastructure spend optimization.
  • Contract and contractual benchmarking.
  • Global pricing and billing.

 

Negotiate for commercial success

  • Procurement strategy, including escalation planning.
  • Negotiation strategy: which levers to pull and when.
  • Choreography: who speaks to whom, and when to escalate.
  • Support with every Microsoft communication, and help drafting your replies.
  • A lean opening position, with requirements released into the negotiation step by step.

What you get

  • The best possible Microsoft contract for your current and future needs.
  • Confidence going into the negotiation, backed by current benchmarks.
  • An upfront assessment of the potential return, so you can validate the investment before you commit.

Why Livingstone

Our specialists work only on Microsoft agreements, so they see what current deals look like and what good means today. We have saved our customers $4.1bn, with an average saving of 38% over what they would achieve on their own. We are independent: we do not sell software or licenses.

A suited man presenting in a board meeting a Microsoft renewal plan to four colleagues

Most in-house teams design and negotiate a Microsoft contract once every few years.

We do hundreds every year.

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FAQs

What happens during a Microsoft EA renewal?

Microsoft issues renewal proposals, usually built around your current agreement or a larger suite. You then negotiate products, quantities, discounts and terms before your agreement ends. If you have not prepared your own view of demand and price, you end up reacting to Microsoft’s.

How do you reduce the cost of a Microsoft Enterprise Agreement?

Build the bill of materials from real demand, profile users so each group gets the right license, challenge requests without a business case, benchmark pricing and terms, then negotiate with a planned strategy rather than on Microsoft’s timetable.

Should everyone in our organization be on E5?

Rarely. Different roles need different capabilities, and a single suite for everyone usually means paying for features many users never touch. Profiling users by need is one of the biggest sources of saving.

What is user profiling in Microsoft licensing?

Grouping users by what they need, then matching each group to the most cost-effective license mix. Too many profiles become hard to manage, so the aim is a small number of well-defined ones.

How long does Microsoft EA optimization take?

Plan for 12 to 18 months before your renewal date. Demand and bill-of-materials work takes a few months, and negotiations take time, so Microsoft’s deadlines don’t set yours.

Is an independent adviser better than our Microsoft reseller?

Resellers earn from the licenses you buy. An independent adviser earns from the savings you make, so the only interest is a better outcome for you. Many customers use both: the reseller to transact, the adviser to optimize and negotiate.

What return should we expect from a Microsoft negotiation adviser?

Across our customers the average saving is 38%. We give you an upfront assessment of potential return before you commit.