Most organizations are in Enterprise agreements or EAs with Microsoft where they pay for all of their users or all of their devices to be licensed for Office and these things like Exchange CAL. What ends up happening is most people start looking at Office 365 about the time of a renewal. They’re coming out of a program where they had all of their licenses included in their EA and now they’re coming up to renewal and Microsoft is pitching purchase Office 365 for all of their users. That’s a natural progress that Microsoft wants to walk you down.

The reality is that’s not the best way to do it, potentially. What they’ll tell you is, “If you’re coming out of an Enterprise Agreement with active software assurance we’ll give you a 10% discount on Office 365 to move into it.” So everybody goes, “Great Microsoft’s giving me a discount and I’m getting this 10% discount because I’m coming out of active SA. This is a great deal for me.” The reality is if you’re not going to deploy Office 365 for four months or more, that 10% discount they gave you is gone. An Office 365 subscription, unlike perpetual licensing, is a monthly subscription.

So, I can pay for that monthly when I deploy it. So, if I’m not going to deploy Office 365 for twelve months, or I’m going to have a roll out because I can only migrate 2,000 users a week to the Cloud I might roll out six months, but why should I pay for 100% of my users day one when I can roll into 100% six, eight, twelve months down and not pay for subscriptions for people that aren’t actually using the service? You really want to take a look at that.

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