CIO Chronicles: Challenging Our Microsoft Renewal

“I wish we had internal data to challenge Microsoft’s numbers instead of relying on their narrative.”

That thought echoed in my mind as I stared at the EA renewal proposal sitting on my desk. More accurately, lurking like a wolf in sheep’s clothing. It wasn’t just the numbers that bothered me. It was the fact that I couldn’t confidently tell my executive team whether they were accurate… or inflated.

I’m Ethan Keller, CIO of VirelliTech, a global industrial automation firm with just over 12,000 employees. We’re a company known for engineering precision and operational efficiency—but when it comes to software licensing, especially Microsoft, our house has been… less than in order.

The Internal Reckoning
A few weeks ago, I pulled together my IT ops director, our procurement lead, and a couple of folks from finance to ask one simple question:
“Do we actually know how many Microsoft licenses we’re using — and how many we actually need?”

Silence. Then the usual dance:

Procurement shrugged: “We go by what Microsoft tells us.”
Finance asked: “Isn’t that in the SAM tool?”
IT said: “Which SAM tool are we talking about? We’ve got ServiceNow, but it’s not fully implemented.”
And everyone turned toward my SAM lead… who left the company six months ago and hadn’t been replaced.

That’s when the reality hit me.
We had fragments of data — procurement records here, spreadsheets there, telemetry that may or may not be tied to active users — but nothing coherent. And yet, Microsoft was asking us to sign off on a 3-year agreement with a 22% cost increase and only vague assurances about “value realization.”

Microsoft’s Narrative Is Always Ready
Microsoft doesn’t wait for you to get your house in order. Their EA renewal account team came prepared. PowerPoints, charts, “business value assessments,” and usage stats that—let’s be honest—made us look underlicensed, underutilized, and underinformed.
But here’s the kicker: I knew some of their claims didn’t line up with reality.
For instance, they said Teams usage was “skyrocketing” across the company, but I’ve had two senior managers tell me their divisions still use Slack and WebEx. They claimed our Defender deployment was near-complete. It wasn’t. We were piloting it in just one region. So I sat there, stuck between a vendor who had all the leverage—and an internal team that couldn’t give me a clean, confident alternative narrative.

Enter MetrixData 360
That’s when our CFO — who had worked with MetrixData 360 at her previous company — pulled me aside and said: “You don’t have to do this alone. Get someone in the room who can tell our story — backed by our data.We brought in the MetrixData 360 team that same week.

They didn’t start with Microsoft. They started with us. They dug into our Active Directory data, matched it with usage telemetry, crawled our CMDB, reviewed our contracts, and helped us map out an actual license inventory. Within a month, we had a complete, validated picture of what we had, what we were using, and what we truly needed.

They identified over 1,300 E5 licenses that could be downgraded. We were double-counting SQL Server entitlements. And our supposed “under-deployment” of Defender? It was already deployed across three regions—just not reporting correctly in Microsoft’s dashboards.

The Power Shift
For the first time, we walked into the negotiation not with questions—but with answers. Our answers.
And when Microsoft’s team tried to steer the conversation with their usual assumptions, we didn’t push back emotionally. We pushed back with evidence.
I felt like a CIO again—not a customer trying to catch up to a vendor’s story.

The Lesson
We talk a lot about digital transformation and owning your tech stack — but no one tells you that if you don’t own your data, someone else will. In this case, Microsoft was more than happy to tell our story for us — until MetrixData 360 helped us tell it better.

I still think about that moment in my office:
“I wish we had internal data to challenge Microsoft’s numbers.”
Now, we do. And I’ll never go into another renewal without it. You shouldn’t either.

Renew your Microsoft EA Agreement With Confidence and Precise Data. Let’s Connect Today.

Microsoft 365 Copilot New Pricing Options

As cloud adoption continues to surge, businesses face increasing pressure to effectively manage and optimize their cloud expenses. Enter FinOps is a cultural and financial management practice bridging the gap between finance, operations, and technology. This approach enables organizations to maximize cloud investments by fostering collaboration, enhancing visibility, and driving cost-efficient practices. In this blog post, we will explore the critical role of FinOps in cloud cost management and how it can transform your organization’s approach to cloud financial operations.

Understanding FinOps

FinOps, short for Financial Operations, is a set of practices and principles designed to bring financial accountability to the cloud computing variable spend model. It aims to align the objectives of finance, DevOps, and business teams, ensuring that cloud resources are used efficiently and effectively to meet organizational goals.

Critical components of FinOps include:

    • Collaboration: Promoting a culture where finance, operations, and technology teams work together to manage cloud costs.
    • Visibility: Providing detailed insights into cloud spending to help teams make informed decisions.
    • Optimization: Continuously identifying and implementing cost-saving opportunities without compromising performance.

Challenges Addressed by FinOps

FinOps addresses several challenges that organizations face in cloud cost management:

  • Lack of Cost Visibility: Many organizations struggle to understand their cloud expenses clearly. FinOps provides detailed visibility into where money is spent, allowing teams to identify and address inefficiencies.
  • Budget Overruns: Cloud costs can quickly exceed budgets without proper financial management. FinOps helps forecast and control spending, reducing the risk of budget overruns.
  • Resource Waste: Inefficient use of cloud resources can lead to significant waste. FinOps practices help identify and eliminate unused or underutilized resources.

The Core Principles of FinOps

FinOps is built on three core principles that guide organizations in managing their cloud costs effectively:

1. Teams Need to Collaborate:

    • Encourage cross-functional teams to work together to manage cloud spending.
    • Foster a culture of shared responsibility and accountability for cloud costs.

2. Decentralized Control with Centralized Visibility:

    • Allow individual teams to make informed decisions about their cloud usage.
    • Provide a centralized platform for tracking and analyzing cloud costs, ensuring transparency across the organization.

3. Everyone Takes Ownership of Their Cloud Usage:

    • Empower teams to take responsibility for their cloud spending.
    • Implement chargeback or showback models to allocate costs to the respective teams, promoting accountability.

Implementing FinOps in Your Organization

To successfully implement FinOps, organizations need to follow a structured approach:

1. Establish a FinOps Team:

    • Form a dedicated team comprising members from finance, operations, and technology departments.
    • Assign roles and responsibilities to ensure effective collaboration and communication.

2. Adopt FinOps Tools and Technologies:

    • Leverage cloud cost management tools to gain detailed insights into cloud spending.
    • Use automation tools to enforce cost-saving policies and optimize resource usage.

3. Develop a FinOps Framework:

    • Create a framework that outlines the processes, policies, and best practices for managing cloud costs.
    • Define key performance indicators (KPIs) to measure the success of your FinOps initiatives.

4. Promote Continuous Improvement:

    • Encourage a culture of continuous improvement by regularly reviewing and optimizing cloud usage.
    • Conduct training sessions and workshops to update teams on the latest FinOps practices and tools.

Benefits of FinOps

Implementing FinOps in Your Organization

  • Cost Savings: Organizations can achieve significant cost savings by optimizing cloud usage and eliminating waste.
  • Improved Financial Accountability: FinOps fosters a culture of accountability, ensuring that teams take ownership of their cloud spending.
  • Enhanced Decision-Making: With detailed visibility into cloud costs, teams can make more informed decisions about cloud usage.
  • Operational Efficiency: FinOps helps streamline cloud financial operations by promoting collaboration and automation.

Conclusion

FinOps is a transformative approach to cloud cost management that empowers organizations to maximize the value of their cloud investments. FinOps enables businesses to manage their cloud expenses effectively and achieve their financial objectives by fostering collaboration, enhancing visibility, and driving cost-efficient practices.

At MetrixData 360, we understand the importance of effective cloud cost management. Our solution Lucidity is designed to help organizations implement FinOps practices and optimize their cloud spending.
Contact us today to learn how we can support your FinOps journey and drive financial success in your cloud operations.