Open Value Subscription for Education Solutions is a commitment-based Microsoft volume licensing agreement for academic organizations with five or more FTEs or students who wish to license a company-wide license. Software Assurance is included in the delivery. The Microsoft Enterprise deal has always been a potential hot spot for over-spending – and this is more true today than ever before. The volume of subscription and licensing opportunities for Microsoft`s offerings is overwhelming. EA`s renewals and initial negotiations have never been more complex. And a volatile business climate has increased new tax pressures for both customers and Microsoft. Microsoft Enterprise Agreement and Microsoft Enterprise Subscription Agreement are engagement licensing agreements for commercial organizations that sign a new registration with 500 or more users/devices and government organizations with 250 or more users or devices. These agreements are best for organizations that want to license company-wide microsoft software and cloud services over a three-year period and at the best available prices. Alternatively, the customer can sign a purely enterprise online service contract with Microsoft. This option does not require company-wide standardization. Customers must acquire at least 500 Enterprise online service licenses. Microsoft has long offered the Enterprise Agreement (or “EA”), a three-year, three-year licensing system for organizations with 250 or more desktop computers that provides free software updates for the duration of the agreement, and an unlimited license for the software upon expiry of the agreement. In recent years, Microsoft has added an additional licensing system – the Enterprise subscription – for organizations that do not necessarily require indeterminate licenses.
This agreement also has a three-year term and software updates, but includes a non-permanent license that expires at the end of the period. While the vendor`s cloud offerings may be the future of its business, most Microsoft customers are still operationally and contractually blocked in on-premise deployments. This is not to say that the Enterprise subscription is the panacea. High-utilization companies can identify significant long-term economic benefits by walking with EA. Companies may also find that Microsoft is more willing to negotiate the definition of a qualified office or other terms in the EA, which allow for closer coordination with business requirements. In any event, in choosing between the two options, I recommend that IT decision makers consult with internal and external licensing experts to evaluate their options. As of July 1, 2016, Microsoft will no longer accept new orders and software insurance renewals in markets where MPSA is available, thanks to existing Select Plus business agreements for the next anniversary of the customer`s contract. As a public company, Microsoft`s mission is to accurately predict revenue. To do this, the company must have a clear overview of its sales pipeline and be able to close purchases and renewals faster and earlier in the quarterly sales cycle. There are a limited number of legal resources and license desks to process these transactions, and it is almost impossible to process paperwork less than two weeks before a calendar year, fiscal year or end of the quarter.
Managing these largest volumes in deal volume is a challenge for Microsoft`s operations, and delays in this pipeline can have a domino effect on quarterly and annual revenue, share price and overall market perception. Customers should use the supplier`s desire to prevent purchases and extension periods accordingly. Contrary to popular opinion, Microsoft may be more flexible in negotiations outside of their peak sourcing periods.