Tag: Microsoft

I enjoy reading inspirations and thought provoking quotes every now and again.  I found one recent, that was from John F Kennedy about negotiating that I believe applies to negotiating a Microsoft audit.  Since JFK was a President, he found himself in all kinds of tough negotiating spots and he provided this little bit of wisdom.

Anyway, the quote goes like this:

“Let us never negotiate OUT OF FEAR, but let us never fear to negotiate”

One of the Forgotten Laws of Software Audits and SAM Engagements

An audit is a negotiation.  Understand that your deployment position is a negotiation.  Period!

Let me explain.  Right now, software vendors like Microsoft are auditing or disguising audits as Software Asset Management engagements – (SAM for short) 1000s of companies.  It’s a huge revenue generator for them.  So many companies are falling into the trap that their vendor tells them that the SAM process is to help them understand licensing and their deployments. But it really isn’t, its about generating revenue. And in this free short video, I’m going to show you how they use these audits to generate revenue and what you can do to ensure you only pay for what you are actually using!

A Better Way To Handle SAM Engagements

I’m not only going to show you how, with MetrixData360’s SAM Compass, you can use the same tools the auditors use (most of these are free) , but I will show you the tool we use to clear the noise out of deployment data, structure your data, and how to apply licenses to get the optimal results for you. And guess what! You don’t need to be a licensing PhD to apply these strategies. You can save yourself thousands of dollars just by copying us (or allowing us to do it for you).

More importantly, I’m going to show you the one simple tool that empowers you to do this on your own.  You don’t need an army of IT folks, lawyers, and other resources to do this, and you definitely don’t need a million-dollar budget to implement some fancy Asset Management Tool!

Defending Your Dollars During a SAM Engagement

But let’s back up for a second; about two years ago when Microsoft started auditing more people, our business began to grow.  People were looking for help to defend themselves against what they felt were unjustified audit positions (and they were unjustified) and so we built a lot of manual process to help organizations in negotiating a Microsoft audit.

Over the last two years we have successfully defended almost 100 companies (from 250 users all the way up to fortune 50 companies) with Microsoft Audits or SAM Engagements and shown them how to save millions of dollars in incorrect audit findings.

I’m talking about real dollars saved.  Not just from audit findings, but we were also able to take their actual deployment data and licenses that they owned and create licensing models that worked for them versus the typical Enterprise Agreements they were being sold, saving them even more money.

And here’s the bottom line that I keep coming back to – no matter how big or how small the company, organizing and understanding your data is the key to saving money when negotiating a Microsoft audit.

Use Data to Defeat a Microsoft Audit

For client after client, our manual tools that we developed did TWO things really well.  They helped us organize the data so we could visualize it simply (removing all kinds of noise) and it helped us OPTIMIZE LICENSE ASSIGNMENTS driving savings.

I guess if you can only do two things well and it saves you money, those are two pretty good things.

So let’s start off by talking about organizing data, about how you need to be able to visualize your deployment information in a simple and easy to understand manner.

First let me ask you a question. You are trying to save your company money, right? You want to be able to optimize your Microsoft licensing (whether that is on-premise or cloud based licenses) so you can help your company save money, right?  And you’ve seen the big Asset Management Tool companies promote how their tools give you the rigor and process to save you 20, 30, even 40% on software licenses and audits?  So as someone that is responsible for software licensing, can you tell me how you can save money without being able to correctly visualize and analyze your deployment data?

It’s impossible, right?  And there is a reason for that.

Structuring your data correctly works for a lot more than audits though, but audits are definitely one great area to apply the concept – and what you need to know is what the smartest people who defend software audits know, what those expensive SAM Tool companies know that saves you millions of dollars – it’s something you need to pay attention to.

And I think one of the best things about this tool, is you don’t need to change your current process!  It works with your existing tool, whether that is SCCM, BigFix, Altris, Flexera, etc.  Don’t have an inventory or network management tool? Not to worry, there are some free tools like Microsoft MAP that will do.

Clients Who Saved Big During SAM Engagements

Here are just a few examples of the big audits that I’ve worked up close and personal on where we saved millions of dollars for our clients (identities masked to protect the innocent obviously!)

A large Healthcare Organization was audited by Microsoft.  The auditors had produced findings of $9 Million in non-compliance.  For 6 months they argued with the auditors about the findings.  Figuring the real number was about $1 Million. MetrixData360’s process helped them settle for less than $500,000 in 8 weeks.

A global transportation company was facing an SAM Engagement to validate their use of Microsoft SQL Servers.  Their account team took the raw data that was provided and assumed they needed $5 Million dollars of licenses.  When we formatted the data and gave them a visualization of the data, they soon learned the shortfall was actually $0.

Not as big as these two examples?   Don’t worry!  The bottom line?  These two companies saved Millions of dollars and countless hours of wasted time and aggravation trying to deal with incorrect audit findings.  The best part is the results scale to the size of your organization!

Let SAM Compass Guide You Through Your Next Microsoft Engagement

MetrixData360’s SAM Compass and software deployment visualization process saves you money!

I know you know this, but for whatever reason, you’ve only messed around with deployment data, or you haven’t done it all.  Maybe you think it’s too complicated, or it’s too expensive, or you’re going to wait until you receive an audit notification.  Already engaged in an Audit or a SAM it’s not too late!

Let me save you the trouble – let’s look at someone who’s already used SAM Compass and figured it out.

I want to show you what one of our clients has done with the tool and how they used it to figure out exactly what they had deployed and where they had potential compliance gaps – before they even became a problem.

These guys had a good handle on their licensing but they never had a way to visualize it.  Like many of you out there they were managing everything in many different spreadsheets.  However, once we implemented MetrixData360’s SAM Compass, they were able to see everything quickly and easily.

I know what you are thinking!  That is tough to implement, how do I get the data.  Let me put your mind at ease!

The client I just showed you did not have an inventory tool installed.  All their license management was done in spreadsheets.  As someone requested something new, they just added it to a running total to figure out what their true up would be.  That was until we ran them through the SAM Compass process and automated it for them!

This client (and about a dozen others I’ve worked with in the last 90 days) ran Microsoft MAP Toolkit.  It is a free tool.  It does the same thing as those fancy inventory tools that are out there, and the great thing is it works for someone who has 100 devices to someone who has 100, 000 devices.  Cost to use this tool $0.  Sorry inventory tool vendors.

A One Man Army Against SAM Engagements

The next thing people ask; they must have had an army of people running this MAP thing.  Not at all!  1 IT person with the right credentials, about 10 minutes to set it up and BAM! results.  We used the Assetlabs ECHO tool to validate the data, ask them to make a few changes, and done!

What about having to run all kinds of reports out of that MAP toolkit to get the data!  Nope (we don’t like their reports anyway; we think they are wrong!)  With that ECHO utility that I just mentioned from Assetlabs (free as part of the SAM Compass service) the data automatically gets extracted from MAP.  Five minutes after that you can be in the portal visualizing your data.

Before we built SAM Compass, this process took us days.  We also know that many of you stop building SAM practices because it would have taken you just as long.  When we used manual processes, it was painful. I mean, it hurt to get the data in a consistent format for visualization and licensing optimization!

The thing is I am an audit and licensing expert – I never wanted to be a data analyst.  I want to help clients save time, save money, and save aggravation. I use SAM Compass because it’s more effective than anything I’ve ever done – now I don’t have to manipulate standard reports and stitch data together for hours and hours.

What does this mean to you?  It means you don’t need a multi-million dollar budget to get started in SAM.  Just sign up for SAM Compass!  If you don’t have an inventory tool – just install Microsoft MAP!  You don’t need an expensive inventory tool!  I will make you a bet – if I showed you the results from someone who had a multi-million dollar implementation of a fancy SAM tool and the same results with SAM Compass, you wouldn’t be able to tell the difference.  Well that’s not exactly true, SAM Compass will give you better, more actionable results and data you can easily visualize!

Get Guidance Through Your Next Microsoft SAM Engagement

So why don’t you know what your license position is?  Are you able to easily defend yourself in an audit?  Do you have easy access to all your deployment data?  Is it easy to visualize and understand?  Is your Enterprise Agreement optimized based on your actual usage?

You know what?  Don’t answer that because I don’t want to incriminate you!

Send an email to info@metrixdata360.com and ask for us to schedule a demo of SAM Compass for you today and let’s discuss how you too can save time, money and aggravation!

Microsoft is Changing How it Negotiates EA Renewals:
Here’s What You Need to Know to Prepare

If you’re a part of a large company with at least 250 devices, chances are you have some sort of an Enterprise Agreement (EA) in place with Microsoft. The EA offers Microsoft products at reduced prices, gives you the opportunity to add licenses while paying (true up) later, and it allows an easy way to purchase online services such as Microsoft 365.

Given the right circumstances, this can prove exceptionally valuable and highly cost-effective. If you find yourself in the wake of a looming EA renewal, there are some recent changes that you should take into consideration before entering negotiations with Microsoft.

At Metrixdata 360, after over a decade of experience dealing with Microsoft, we have noticed a change in how Microsoft approaches these renewals that may make your renewal more challenging than they have been in the past. We’ve outlined the some of those changes to how Microsoft handles Enterprise Agreement renewals below.

Pressure to Move to the Cloud

While Microsoft’s Azure may not have as many features or as wide availability as Amazon’s Web Service (AWS), Azure popularity is skyrocketing, and its sales organization is highly motivated to push you to the Cloud.

Now, Microsoft has become quite aggressive in moving its business – and subsequently its clients – to the Cloud and away from traditional on-premise licensing. This means you can expect a lot of pressure from Microsoft to get you to sign up for some commitment to Azure and other subscription-based licensing models (Office 365, Security Products, Teams Voice Features, etc.).

The particular complication that Azure presents that we have often seen occurs when companies sign up for Azure services and find out that there are many hidden or unexpected costs that can quickly add up, making it difficult to predict what the total cost will be for your company. Services that are sold for only a few cents per minute could easily cost thousands of dollars when scaled.

A big indicator that points to Microsoft’s desire to move the Cloud comes in the form of traditional on-premise products often being ignored by Microsoft. If you had discounts on these products in the past, Microsoft is removing those discounts and the revenue that is associated with these purchases is no longer of much interest to the Microsoft sales teams.

For more information on moving to the Cloud, check out our article 4 Best Practices For Cloud Optimization.

Microsoft Will Use Tight Timelines

In the past, Microsoft had internal pressure to ensure that Enterprise Agreement contracts were renewed on time.

We have seen a shift where they are now using this deadline against customers. This pressure leaves companies feeling forced to sign a contract that may not be the most beneficial for them.

Running the clock down to make a Microsoft representative sweat may have resulted in a better proposal when the actual expiration date drew near. Now, however, this strategy no longer yields the results customers are looking for as Microsoft has shifted the pressure to the customer and may not make any improvements on their proposals even when the date for renewal approaches.

Since tight deadlines no longer hold much sway, we would suggest giving yourself ample time to prepare. Previously, you may have only needed three to six months to prepare, but now, you may need nine to twelve months. The first six months should be used to ensure you have a complete handle on what you actually require from Microsoft and the remaining three to six months should be used to actually negotiate the renewal.

Microsoft Needs You to Keep Buying and Upgrading in Order to Consider You a Partner

Are you just starting to deploy to Office 365? Perhaps Microsoft will pressure you into buying security products as well. What does it matter to them that you already have a contract with another vendor, or that to make the transition from your current vendor would be a needlessly laborious task? You can expect no concession from Microsoft when it even comes to the time that it would take for you to actually move or justify those purchases.

If you own E3 licenses, you can be expected to be pressured to buy E5s and if you have Office 365, you’ll see pressure to purchase Microsoft 365.

Large commitments to Azure are constantly being pushed on customers, and we have also seen an increased interest in selling LinkedIn Services within the EA, this includes services that revolve around recruiting, sales, and marketing.

This raises a question: if you already have top-level products like E5s and there’s nowhere you can upgrade to or you simply don’t need anything new, how will you be able to get those price concessions from Microsoft that you need if you seemingly have no bargaining chips?

Microsoft Needs You to Keep Buying and Upgrading in Order to Consider You a Partner

Are you just starting to deploy to Office 365? Perhaps Microsoft will pressure you into buying security products as well. What does it matter to them that you already have a contract with another vendor, or that to make the transition from your current vendor would be a needlessly laborious task? You can expect no concession from Microsoft when it even comes to the time that it would take for you to actually move or justify those purchases.

If you own E3 licenses, you can be expected to be pressured to buy E5s and if you have Office 365, you’ll see pressure to purchase Microsoft 365.

Large commitments to Azure are constantly being pushed on customers, and we have also seen an increased interest in selling LinkedIn Services within the EA, this includes services that revolve around recruiting, sales, and marketing.

This raises a question: if you already have top-level products like E5s and there’s nowhere you can upgrade to or you simply don’t need anything new, how will you be able to get those price concessions from Microsoft that you need if you seemingly have no bargaining chips?

Our Recommendations for Your Next EA Contract Renewal

At MetrixData360, we recognize that things are not the same with Microsoft as they have been in the past and going into your EA renewal, you’ll be confronted with a new process that is far more frustrating than it used to be, so here are some tips to help you deal with these changes:

Air Your Frustrations – Tactfully

We’re not suggesting you flip a table (despite how satisfying that might be), but be prepared for this situation to be exasperating. Microsoft will use all of the corporate structures as justification for drawing out the process and as a way to avoid legitimate business requests.

Make sure you let Microsoft know how irritated you are with this process and talk to them frequently. It will be helpful to move things along if you set up, early in the process, a weekly meeting with Microsoft and present them with small tasks to do during these meetings. This will allow you to track their progress.

Anticipate That You May Need to Purchase More Licenses Than You Use

It may seem counter-productive if you’re looking to save money and cut spending, but Microsoft is known to reward those who buy into their strategies early. Sometimes, you can get concessions that may be worth the purchase, even if you end up buying things you don’t need, such as E5 licenses and LinkedIn services.

Make sure you have a strong understanding of what a reasonable price would be for the bare minimum you require for your company. This is done through understanding your company’s usage regarding these Microsoft products. A 20% discount will still mean losses if it turns out you’re overspending by 45%, so keep that balancing act in mind if you decide to scale up.

If you’d like to learn more about the value gap in Microsoft Negotiations, check out our Youtube video from the SAM Channel.

Know Your Options and Be Assertive

Microsoft will push you to get things done quickly, and to increase your spending, so you have to be prepared to push back.

You may need to be prepared to move beyond the expiration date in order to see flexibility from Microsoft. We have seen organizations that have gone two months past the expiration date to finally reach agreement with Microsoft.

The only other option available to you to get around this unfortunate situation is to start earlier and get serious about the negotiations as soon as possible. In the past, the intensity of the negotiation came to its peak around one to three months before the renewal but now, in order to reach the most ideal agreement, negotiations should begin in earnest around three to six months before the renewal.

You also need to be prepared to escalate within your organization and with Microsoft’s.

Having a strong understanding of your software usage and current spending will give you the knowledge you need to create two or three pricing options that will allow you to decrease costs or at least to not increase it.

Don’t expect Microsoft to be any help to you in these areas, their goals are very clear, they want you to increase your spending regardless of whether it will provide greater value to you.

Hire a Professional Negotiator

There are many stakeholders involved in a contract renewal, each with different goals that need to be persuaded, what words do you use to convince them all?

You will need an in-depth look into your spending and your software usage. This will empower you to pursue the best deal possible for your company.

Also, if you do manage to lower your spending with Microsoft, it is likely that they will attempt to make up for any shortfalls in their revenue target by sending you some version of an audit, either a friendlier SAM engagement or a straight-up audit.

For this reason, it is important you get a professional to help you prepare for your EA renewal as though it were a software audit because it could very easily turn into one, depending on how things go.

If you want to know about your options for the management of your software, see our article Hire a Software Asset Management Expert or Do it Yourself? The Pros and Cons of Each.

Microsoft Negotiation Services for Your Business

Enterprise Agreements are a vital part of your business, and it’s important you prepare for your EA renewal sooner rather than later, lest you be stuck with an overpriced agreement that fails to deliver on value.

Your best defense is to be prepared and to know your data backwards and forwards.

At MetrixData 360, we pride ourselves in providing our customers with solid data that is easy to understand. If you’d like to know more about how MetrixData360 can provide you with the deals you need and the prices you want, clicking the link below will take you to our Contract Negotiation page.

Download our PDF on Software Sales Rep Motivations:

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Waiting for June to Negotiate with Microsoft? Don’t Bother!

There is a piece of common wisdom that has been rolling through the Software Asset Management community for a while now: negotiate with Microsoft in June to strike better deals on your licensing contracts. Unfortunately, like most tall tales, it lives purely because it continues to be repeated without regard to data or evidence. In fact, after completing hundreds of Microsoft negotiation projects over nearly a decade and negotiating over $1 billion in license contracts, we can confidently tuck this myth away as little more than folk wisdom. So where did this myth come from? And why has it become so prevalent in the SAM industry? Let’s dig deep and dispel this myth once and for all.

June is Microsoft’s Fiscal End of Year

The myth that Microsoft is willing to give better deals stems from the fact that June is the end of Microsoft’s fiscal year. While many businesses try to shore up any negotiations to boost their end-of-year earnings, we assure you that Microsoft is well ahead of you. For a corporation as large as Microsoft, making a last-minute sale of even a few million dollars at a huge discount for the year-end doesn’t make sense on the scale that Microsoft plays at. They know you need their software or face a huge hassle when you try to move away from their products, as the scientists at CERN are currently finding. So why should they care whether you buy today or tomorrow? Microsoft knows they’ll get your money eventually.

Aside from the sales rep that wants to make his quota look good, the fiscal end-of-year for Microsoft does not change the margins they are willing to accept during a contract negotiation. Microsoft didn’t become the industry giant they are by painting themselves into a corner when negotiating. In fact, going into a negotiation with the assumption of being on a deadline is a great way to pay more. To quote Chris Voss in Never Split the Difference, “Deadlines are the Boogeyman of negotiation–almost exclusively self-inflicted figments of our imagination, unnecessarily unsettling us for no good reason.” By assuming you have a deadline of June 30th to close a deal, you’re robbing yourself of the best tool any negotiator has: TIME. In the end, Microsoft doesn’t care whether your contract gets put on the books for this year or next, they just want your money.

Microsoft Made $118 Billion Last Year

Let me say that again for those in the back: Microsoft took in over $118 Billion last year. To give you a sense of scale, consider that a $1 Million dollar license contract is less than 1/100,000th of their total revenue. Even signing a $10 million contract would be less than 1% of 1% of their total revenue. For many organizations, a million-dollar deal either is a huge expense or a boon, depending on what side of the contract they are on; for a company like Microsoft, it’s pocket change. Those looking to craft a deal under the pretense of boosting Microsoft’s end-of-year bottom line fail to realize where they sit on the scale of a company like Microsoft. The truth is your contract is a drop in the ocean of Microsoft’s revenue. That doesn’t mean that Microsoft isn’t willing to sit down and talk, however. Making a dollar is still better than not making a dollar, as Economists like to say.

A Drop in Microsoft’s Bucket

Now that we’ve established how little your contract contributes to Microsoft’s bottom line, it’s time to shift your thinking when you go into a negotiation. There’s a good chance your company is not as big a fish they want to negotiate as. When it comes to bringing clout to the table, there are not a lot of players that can shake Microsoft. And that’s okay. Now that you know your agreement won’t have debilitating effects on Microsoft’s bank account, it may seem that you’ve lost your leverage. But you haven’t. Instead, you are now in a better position to negotiate because you understand the reality of the situation. Negotiating from a false position is reckless at best and could end up sabotaging your own efforts.

When IS the Best Time to Negotiate with Microsoft?

Unfortunately for those looking for the best time to enter into talks with Microsoft, the answer isn’t found on a calendar. The best deals are made through good negotiations and a solid understanding of both parties’ positions. When it comes to negotiating with Microsoft, there are a few tips and tricks you can use to get a better deal.

Have Accurate License Inventory

The easiest way to be sure that you don’t give Microsoft more money than you need to is by maintaining an accurate list of your license inventory and use. This data will guide you in how many licenses you need, the type of software your organization needs, and give you leverage when you enter negotiations.

Don’t be Intimidated by Microsoft

A second tip is to stand your ground. It is easy to be intimidated once talks with Microsoft begin. Microsoft is one of the biggest dogs in the park, and all that clout can be intimidating. The truth, however, is that a good negotiation is one that both parties walk away feeling satisfied with. By knowing what you want, why your position makes sense, and sticking to that position, you have a better chance at striking a deal that works for both parties.

Hire a Professional Contract Negotiator

For those who still don’t feel comfortable going toe-to-toe with the biggest player in the software industry, hiring a professional negotiator can be a reasonable solution. Negotiators in this realm often know Microsoft’s negotiating tactics and limits. By hiring a third-party provider who understands how Microsoft as a company thinks, your team can effectively counter Microsoft’s tactics and/or be better prepared for how they will react to your offers.

Facing a negotiation with Microsoft can be stressful. Let MetrixData 360 relieve some of that stress by preparing you for dealing with vendors through our Learning Center. If you still have doubts about your organization’s ability to negotiate the best possible license contract, contact us and let our expert software license negotiators handle it for you.