Discount Level Calculation Under 2011 EA

The 2011 Enterprise Agreement (EA) introduces a new formula for determining discount levels for Enterprise Products and Enterprise Online Services. EAs have four pricing tiers—Level A, B, C, and D—with the Level D discount being the best.

In the new scheme, Enterprise Products and Enterprise Online Services are grouped into four Price Groups (see the chart below). At the start of an EA, a customer specifies how many licenses it is ordering from each Price Group. A discount level is determined using the largest Price Group quantities specified. Discount Level A applies for a license count of 250 to 2,399, Level B for 2,400 to 5,999, Level C for 6,000 to 14,999, and Level D for 15,000 or more. This discount level is then applied to all Enterprise Product and Enterprise Online Services purchases made within the EA.

For example: A customer orders 250 licenses from Price Group 1, 0 licenses from Price Group 2, 6,000 licenses from Price Group 3, and 15,000 licenses from Price Group 4. Because the largest license count is Price Group 4, the customer receives the Level D discount for all Enterprise Products and Enterprise Online Services.