The licensing and pricing changes of IT vendors have certainly caused a commotion within enterprises. It's not only that these changes are quite drastic, it will make companies pay a lot more and that's never good at all. This move was made by IT vendors like Oracle and Microsoft for the purpose of increasing revenue.
Enterprises that have been using Microsoft EA will need to look over their licensing agreements. They should understand why there's a need for new Microsoft negotiations for licensing renewal. Below is a list of the forces behind the negotiations:
* Getting Early Renewals- Microsoft is adamant in getting more early renewals to avoid spillovers in 2013. The problem is, customers are putting off license renewal at a later date. Of course, consumers aren't really worried about making the Q4 of the fiscal year. So, Microsoft is making a move to encourage customers to renew earlier.
* Forecasting Revenues- Microsoft sales representatives are under great pressure to come up with accurate revenue forecasts. Microsoft wants to have a solid idea on how much they'll earn if there are more 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.
So, how should you deal with Microsoft EA license negotiation? The first thing to do is renew the license as early as you can. When you do that, the Microsoft staff will most likely give you better offers on prices and maybe some discounts too. This is one way to entice customers to renew their licenses early on. Next, you must educate yourself on the licensing options they are offering.
When Microsoft performs the true-ups and soft audit to your software, do monitor your software costs before that happens. Renewing licenses is a must but which licenses are really worth paying for, right?
Enterprises that have been using Microsoft EA will need to look over their licensing agreements. They should understand why there's a need for new Microsoft negotiations for licensing renewal. Below is a list of the forces behind the negotiations:
* Getting Early Renewals- Microsoft is adamant in getting more early renewals to avoid spillovers in 2013. The problem is, customers are putting off license renewal at a later date. Of course, consumers aren't really worried about making the Q4 of the fiscal year. So, Microsoft is making a move to encourage customers to renew earlier.
* Forecasting Revenues- Microsoft sales representatives are under great pressure to come up with accurate revenue forecasts. Microsoft wants to have a solid idea on how much they'll earn if there are more 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.
So, how should you deal with Microsoft EA license negotiation? The first thing to do is renew the license as early as you can. When you do that, the Microsoft staff will most likely give you better offers on prices and maybe some discounts too. This is one way to entice customers to renew their licenses early on. Next, you must educate yourself on the licensing options they are offering.
When Microsoft performs the true-ups and soft audit to your software, do monitor your software costs before that happens. Renewing licenses is a must but which licenses are really worth paying for, right?
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 consulting consulting
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