Microsoft Enterprise Agreement Payment

The Microsoft Enterprise Agreement (EA) agreement is designed for organizations with more than 500 users and/or devices and offers an annual payment, set for a 3-year term for selected products. With software licensing options either through Enterprise Agreement registrations or enterprise subscription programs, you can find a price plan that meets your budget requirements. At that time, the only improvement in the type of monthly pricing, which allowed customers to add new users in the middle of an agreement, to pay only for the number of months remaining until the anniversary of that agreement, and then to pay the annual amount for subsequent years. It is interesting to note that Microsoft has not provided an option to reduce the number of users in the middle of an agreement, which means that, in the worst case, customers would have to pay 12 full months for users who were licensed on the first day, even if these licenses are never needed until the next anniversary. These program restrictions can be costly for customers who, in the end, can pay between 20 and 40 percent more for the same workloads by maintaining the current EA model instead of reducing the number of users each month. You can certainly expect Microsoft to push back the requirements to meet this overpayment, which claims that their back-end systems for the EA program are not able to cope with these scenarios. It reminds me of an old Venezuelan proverb that translates about as much: “In the forge house, they use wooden knives.” At present, there is no indication that the Enterprise Agreement program offers such flexibility, although it has been available to PSC clients for five years. If Microsoft is to continue to become a consumer-focused business model, as they say, it needs to better “manage” operations and pricing to provide the flexibility that business customers need. In the meantime, ISG can help corporate clients harmonize costs and values to make the right decisions for their business. Check out ISG Insights to learn more about the latest Microsoft news and announcements. And contact us to find out how to help you. Since the emergence of Microsoft`s commercial online service offering, which began in 2008 with Business Productivity Online Services (BPOS), one of the benefits marketed by the software giant has been to improve the way customers could pay for the service. This was an abandonment of traditional annual prices used by Microsoft Software Assurance`s volume licensing program and a more “flexible” monthly pricing that would allow customers to adjust the amount they pay based on the number of users over the term of the license agreement, which is typically 36 months.

In 2014, Microsoft launched the Cloud Service Provider (CSP) program to allow the reseller community to sell Microsoft`s online services to the masses.

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