Negotiating an Enterprise Agreement

Although the rules and contract language for volume license agreements are generally well-defined, Microsoft’s sales and licensing personnel do have some latitude in shaping specific licensing agreements, including their price. This is particularly true for Enterprise Agreements (EAs) and large customers, who may have specialized requirements or business models that can be enhanced by changes to standard agreements. The following tips can help customers negotiate new volume agreements.

Know what you own. Many companies have only a vague idea of all the software they own and who is using it. This makes it difficult to negotiate successfully with Microsoft. Customers with up-to-date inventories of the software they already own and how they use it (for example, how many users access Office components other than Excel, Outlook, PowerPoint, and Word) are in a far stronger bargaining position and are less likely to buy more licenses than they need.

Negotiate. You won’t get what you don’t ask for, so customers who want a sweeter deal should not be afraid to ask for more. Microsoft’s field staff have a small amount of negotiating room; larger discounts require approval of more senior managers. Success is not guaranteed: Microsoft prefers to stick with a specified program whenever possible, but other circumstances, such as competitive threats, economic uncertainty, the need to close sales at some times of the year, customer reluctance to renew a licensing agreement, or general resistance to certain products and programs, can convince the company to bend.