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Tag: Microsoft

Microsoft Changes Minimum Enterprise Agreement Qualified User/Device Count

Posted on by Ben Tight

Change is one constant in the Microsoft licensing world.   Recently Microsoft has announced a rather significant change to their Enterprise Agreement (EA) program.  Effective July 1, 2016 the minimum commitment to the Enterprise Agreement (EA) program will increase from 250 qualified users/devices to 500 qualified users/devices.

 What does this mean for Clients?

Existing EA customers who do not meet the new minimum commitments can obviously continue within their current agreements until expiration.  At that point, it appears existing EA customers will have the option to extend their existing agreements by 36 months.  After the extension expires they will have to transition to either the Microsoft Products and Services Agreement (MPSA) or the Cloud Solution Provider (CSP) agreements if they do not meet the minimum 500 users/device count.

 Why is Microsoft Making this Change and What Should I expect?

For many years the EA program was the core licensing vehicle that Microsoft drove any and all clients (who met the qualifications) towards.   Its clear now that Microsoft is incredibly focussed on their cloud offerings and the MPSA/CSP programs are better positioned to drive that agenda.   Expect Microsoft and their partners to begin aggressively attempting to move clients onto the MPSA/CSP programs rather than extending their EAs.

What steps should I take?

Contact MetrixData360 to have a free initial consultation to evaluate your Microsoft licensing options with one of our licensing experts.  We are not a Microsoft partner and offer unbiased licensing guidance to our clients.  Our focus is to reduce your Microsoft costs and help you negotiate the best possible Microsoft contract.

MetrixData360 Optimizes Our Own Office 365 Subscriptions

Posted on by Ben Tight

Want to save 37% off your Office 365 deployments and your annual subscription costs?  Read up below to see how we did just this for our tiny Office 365 E3 deployment here at MetrixData360.

Many of you may not know this, but we use Office 365 to run our business.  It wasn’t our first choice (in fact we used to run on Google), but we ended up migrating to it for one very simple reason:

  • Outlook Calendars and Google just don’t work well. We would accept meetings on our iPhones and with the one-way sync between Google and calendaring (if you accept in Google it will populate to your phone but not the other way around) we were missing important meetings.

When we decided to move to Office 365 we purchased E3 subscriptions for our 12 users.  It was just the simplest thing for us to do.  As we were doing budgeting for 2016, we were looking at the costs of all of our subscriptions (Office 365, DropBox, WebEx, etc.) and realized the annual fees on all of these were getting out of hand so we decided to follow our own advice and optimized our licensing.

For various reasons we will continue to use Dropbox and WebEx (even though we have the ability to use OneDrive and Skype for Business).  Simplicity and functionality rules for us here at MetrixData360.

OneDrive does not work well with Mac (and a few of us use those).  The only way to get access is via the web client which is a very cumbersome way to access file storage technologies.  Even though they have a OneDrive for business client for Mac (Beta), after many hours of trying we never were able to get it to work correctly.  Microsoft really has a lot of work to do on this one.

Similarly, Skype for Business is not as good as WebEx for meetings.  We use the Instant Message features of Skype but not the online meetings (we were finding it was hard to manage, calls dropping, poor call quality when doing VOIP, etc).  One of our biggest reasons for continuing on WebEx however was for marketing.  WebEx is so much more feature rich for recording and doing webinars, which are very important to our business.

When we looked at our usage we found that half of our users really only needed Exchange Online Plan 1.  We swapped them out immediately and dropped our number of E3 subscriptions.  The net was a 37% reduction in our annual costs of Office 365.  I hesitate to think of the impact to the bottom line of our largest clients (100’’s of thousands if not millions of dollars are being wasted) that are overpaying Microsoft.

We have some exciting news that we will be sharing shortly.  We are working with our partners over at Block 64 on a new service offering that we will be launching in the first quarter of 2016 to help companies who use Office 365 get the same results we did.  We plan on automating the review and showing you how to optimize those Office 365 subscriptions across your organization to save your precious budget dollars!  Stay tuned!

MetrixData360 specializes in helping organizations who are facing a Microsoft audit with assistance through every stage of the audit process.  Our goal is to reduce any compliance gaps you may have and ensure that you are only paying for the software and services you really need.   Contact us today to book a free consultation to see if we can help you!

Not Understanding The Complexity of Licensing Microsoft SQL Can Cost You

Posted on by Ben Tight

Avoiding Costly Mistakes: Mastering the Complexity of Microsoft SQL Licensing

What You Google When You’re Being Audited by Microsoft

Posted on by Ben Tight

Facing a Microsoft Audit? Here’s What You Might Be Searching for on Google!

Have you received an audit letter from Microsoft? Here’s a glimpse of what you may search for on Google!

Metrixdata360.com

Gartner Encore Presentation

Posted on by Ben Tight

The Many Levels Of Negotiations With The Mega Vendors: Microsoft and Oracle

Just some of what you will learn:
Audits/SAM engagements are on the rise, why?

What do these engagements do for Microsoft and Oracle?

This isn’t about compliance, it’s all about… ?

What’s the Difference When Purchasing Office Through Microsoft Office 365 vs Traditional Licensing Models?

Posted on by Ben Tight

A lot of people think that when they are purchasing Microsoft Office Pro through Office 365 they’re buying it and accessing it in the Cloud.

That’s not necessarily the case.

Yes, you can get access to the Office web apps that are in the Cloud, but there’s a fundamental difference in Office. It is the same product, Word, Excel, and PowerPoint, but the Office 365 edition is what they call Click-to-Run versus your traditional EA which is just Office Pro Plus.

Click-to-Run vs On-Prem

The difference between Click-to-Run and on-premise is that in Click-to-Run it has to be current. In other words, where most organizations today are not running Office 2016. Most organizations that we see aren’t even running Office 2013. They’re running Office 2010.

With Click-to-Run you have to be current. I believe it’s one year they give you where you can run the older version. If I’m on Click-to-Run 2013 or 2016 in a year it’s only 2016. So, if you think about the challenges organizations have upgrading their desktops around application testing and things like that, they’re going to have to run those more frequently and Microsoft’s just automatically pushing down patches and updates and making changes to it that they have no control over anymore or limited controls.

That’s one thing organizations need to step back and say, “Okay, Click-to-Run may have some complications that don’t make sense for me to use.”

Enterprise Agreements vs Click-to-Run

The other thing is if they buy Office through a traditional EA versus Click-to-Run, it’s user-based versus device-based. That may have some advantages for some customers and it may have some disadvantages for some customers.

Office, although you can now install it on iPads and smartphones and things like that using an Office 365 subscription, in the Enterprise environment we’re not seeing a lot of use of Office on those types of platforms.

It’s really still a traditional desktop or laptop where end-users consume Office. There’s been some playing with it, but we’re not seeing broad adoption in the Enterprise based environment for that.

What’s the difference in an organization that’s a call center where they have three shifts that run through the call center and you have 1,000 devices, or desktops, and 3,000 users?

In a device-based licensing model I pay for 1,000 and for a user-based model I pay for 3,000. There’s something upside down on that equation. You really want to take a look at the environment and figure out does user-based licensing make more sense for you or does device-based licensing for Office make more sense?

Do I want to be forced to go to Run-to-Click where Microsoft is going to push stock or that it has to have an active Office 365 subscription in order to use? Or do I want to stay with the traditional on-premise copy Office and use that one?

If I wanted to stay with the device-based Office but wanted to go to Office 365, add-ons are the perfect way to do that. If we go back to the call center, 3,000 Office 365 USLs, so to speak, 1,000 Office licenses, 3,000 add-ons. Add-ons are a lot cheaper than USLs.

Microsoft Office 365 How Do You Know What You Really Need?

Posted on by Ben Tight

Office 365 licensing is surrounded by a great deal of confusion.  What is Office 365?  What plan do I require?  Do I require the full suite?  Should I purchase User Subscription Licenses or Add-0ns?  It is no secret that Microsoft is aggressively promoting and selling the service.  The key question to ask is what is Office 365?  The most common answers are related to Office 365 E3.  E3 contains Exchange Online, SharePoint Online, SkypeforBusiness Online and Office Professional Plus.  Most people are unaware that you can purchase a single service such as Exchange Online (YES, even in your EA) instead of the bundle.

My experience is that most people relate a desire to move to Exchange Online to purchasing Office 365 E3.  When asked why they are considering Office 365 the answers range from “we want to reduce our email storage costs” or “we plan to move our mailboxes into the cloud”.  Other Online Services seem to garner less interest (although there seems to be a bit more interest in SharePoint Online lately).

What is shocking is how many organizations interpret a desire to move email to the cloud as a need to negotiate an Office 365 E3 deal with Microsoft.  Most simply do not realize that alternatives exist (such as purchasing only Exchange Online).   It could cost millions more if these options are not considered.

If considering a move to the cloud ask the following questions (these are just a few examples):

  • What Services am I really looking to purchase? Is it just Exchange Online?
  • How quickly will a migration occur? How will users be moved?
  • Are all users the same? Do they all require E3?  Do they all require features of Exchange Online Plan 2?
  • What contractual rights exist? What risks or benefits does purchasing one have over the other?
  • Do User Subscription Licenses (USL) or Add-Ons make sense?
  • Have I evaluated the benefits and risks of USLs to Add-Ons?

What about Office?  How does this factor into the decision making criteria?

The short answer is it shouldn’t.  This surprises many people.   Office is a prominent part of the E3 product and does deserve consideration.  An evaluation of purchasing Office 365 Office Professional Plus versus perpetual licenses for Office Professional Plus should be conducted.  Consideration for comparing “Run to Click” to on premise Office, understanding the value/risk of Microsoft pushing updates, the value (if any – it is surprising how often there isn’t any) in user based Office licensing, VDI or BYOD environments and many others.

If negotiating an Office 365 purchase, review the options and consider proposals for:

  •  Exchange Online instead of E3
  • Renewing SA and purchasing add-ons instead of USLs
  • Purchasing licenses through an Office 365 transition versus upfront commitment
  • Buying as you go versus all upfront

It is surprising what can be learned by asking these questions, not to mention the cost savings you may see.

Why Engage a Microsoft Licensing Negotiation Expert?

Posted on by Ben Tight

Why Engage a MetrixData360 Microsoft Licensing Negotiation Expert?

At MetrixData360 we specialize in helping organizations negotiate more effectively with Microsoft in both audit and volume licensing agreement renewal situations.   Our licensing experts know the best-proven ways to get results and lower your Microsoft costs.  Yet some organizations still hesitate to engage third-party experts.  We understand that organizations often have talented, intelligent and experienced people who are responsible for these sorts of Microsoft negotiations, but there are significant limitations on what any internal person can know:

  • They will only have the opportunity to negotiate once every three years
  • The licensing programs will likely have changed since the last Microsoft contract
  • Product lines will have changed

In my mind, I often compare a Microsoft negotiation to buying a car. I’m the type of person who researches everything. When I meet with the salesperson I’m as well prepared as anyone could be. Then we start talking numbers. I ask for the sorts of discounts that I have read on the internet are possible. They tell me no and counter with something far less substantial. We go back and forth and eventually a deal is done but I never feel great about it. I feel like at some point I lost control of the negotiation.  Furthermore, other than walking away I did not really know what levers I could pull to drive important concessions. At the end of the day, I don’t know that I really received a good deal and in the back of my mind, I have a nagging feeling that I may have paid too much.  I realize that comparing an individual buying a car is very different from a company negotiating a multi-million dollar Microsoft licensing contract.  However, despite the differences in scale/scope I strongly feel like this is the way most of us feel during and after they conclude a Microsoft negotiation in either an audit settlement or a contract renewal situation.

How a MetrixData 360 Expert can help in a Microsoft EA Contract Renewal

In our experience most organizations take the following path leading into a Microsoft EA contract renewal/negotiation. They make a list of the products and quantities they require on the new agreement and consider what products can possibly be dropped from the agreement. Once this list is finalized, the Microsoft negotiation typically consists primarily of driving the deepest possible discount off of a set pricing level. The challenge is that in our experience, Microsoft does not and cannot discount their products to the same level as most other software companies. We find many organizations also will request concessions from Microsoft that they (Microsoft) are simply unable to grant. The end result of negotiating in this manner is frustration and disappointment.   Kind of similar to my car buying experience.

Engaging a MetrixData360 licensing expert changes the process dramatically and puts you in control of the Microsoft negotiation. Our experts have negotiated over a billion dollars of Microsoft contracts and we know the process inside out. In close consultation with you, we will work to understand your technical requirements and negotiation objectives. We will build multiple licensing models and provide a risk analysis of each. Finally, we will coach you through the negotiation process.   The way that we drive costs out of renewals is by focusing on the structure of the contract and driving contractual changes that are important to you. These are small requests that can make a big impact on the costs. I have had calls with clients in which we were able to help them to achieve a concession in a single meeting which they had been unsuccessful in negotiating the last two contract negotiation cycles.

Find out more about the MetrixData 360 process and what to expect when you hire us!

 

How a MetrixData360 Licensing Expert can help in a Microsoft Audit/Software Asset Management (SAM) Engagement.

When most people are faced with an auditor who is presenting their deployment data and showing a sizeable gap in their software licensing, they don’t know how to push back, even when the data being presented just feels wrong. The auditor will usually come back with a statement such as, “well this is your deployment data and this is what we have confirmed is deployed.”   They may then point to terms and conditions in your various contracts that back up their position. Sounds pretty hopeless doesn’t it?

Over the past few years Microsoft audits/SAM engagements have become much more common and our experts are helping clients with them on a daily basis.  This day to day experience with Microsoft audits ranging from clients with hundreds of thousands of desktops to a few hundred means that we understand the process inside out. This experience allows us to streamline the whole process for you and avoid wasted cycles. Our experts also know what your contractual rights are and lets you know when you are in a position to decline the auditors’ demands. Without proper guidance, an innocent data request from an auditor could cost you huge dollars if you are unaware you could challenge the request. Microsoft audits/SAM engagements also tend to be productivity black holes which serve to waste the time and energy of your people. This is where you need a MetrixData360 licensing expert who can surface the terms and conditions which will negate the ones the auditor is basing their case on. Our experts know how to negotiate the most favorable settlement possible. We have successfully saved our clients millions of dollars and hundreds of hours of time.

When Should I Contact MetrixData 360?

We can engage at any point in either the Microsoft EA renewal or Microsoft audit/SAM process but its always ideal to be involved early.   Our Licensing Negotiation Experts are always happy to have an introductory call with you to see how we can help you!

Is Office 365 really being deployed?

Posted on by Ben Tight

Insider Insights: How MetrixData360’s Licensing Specialists Decode Microsoft Enterprise Agreements and Office 365 Deployments

MetrixData360 negotiates hundreds of Microsoft Enterprise Agreements (EA) on behalf of its clients every year. As a result, our licensing specialists have a unique insight into the way enterprise organizations are actually using and deploying Office 365. Microsoft has been reporting robust sales numbers for Office 365 (microsofts-q1-shines-office-365-leads-results) but are enterprise businesses actually deploying it? The observations I am about to share with you are based on MetrixData360’s experiences with our clients and partners and are specific to Office 365 cloud based deployments. I make this distinction as these observations do not take into account 3rd party partner hosted solutions as this is not Office 365 (just traditional hosting). Continue reading “Is Office 365 really being deployed?”

Why Is There An Army of Microsoft People in my Boardroom for an EA Renewal Meeting?

Posted on by Ben Tight

At some point in a Microsoft Enterprise Agreement (EA Renewal) negotiation, a physical meeting usually takes place and a literal army of Microsoft badge wearing folks fills your boardroom. Who are all these people with job titles that are generally two or three letter acronyms? It’s helpful to really understand who these folks are and what will be important to them in the negotiation. 

In simplified terms, your whole Microsoft account team is compensated on the sales of products and services, attainment of a growth number and also for the attainment of scorecard metrics. These scorecard metrics generally include bonuses for the sale of certain quantities of key products that Microsoft has determined are strategic at a corporate level. It can also include punitive measures for account teams which fail to meet their scorecard metrics. This may explain on certain occasions the baffling behavior by an account team in which they appear laser focused on continually positioning a solution for which the client has no particular interest or actual business needs. Odds are it is critical to the account team’s scorecard.

Optimizing Enterprise Account Teams: A Look into Microsoft’s Virtual Team Structure

Microsoft arranges their Enterprise Account Teams into virtual teams. At the simplest level, these are comprised of an Account Manager (AM) and various subject matter specialists. As you would expect, the AM is responsible for the all up management of your account and is also responsible for delivering a sales number to Microsoft.   As a result, this person is concerned with every product line and upsell opportunity on your renewal.

Closely linked with them will be your account Technology Specialist (TS). The TS is responsible for the more general technical aspects of the sales process.   In fact, my former TS (I was an AM) would often describe himself to our clients as, “his (referring to me) technical conscience” which was a very accurate way of explaining how we worked together.   Together the AM and the TS form the core of the account team.

Surrounding this team will be various Solution Specialists. These are presales resources that bring a certain level of technical expertise coupled with sales expertise around a specific Microsoft solution(s) such as Office or SQL Server.   It is important to understand that these roles are only concerned with ensuring that the product lines they represent are attached to the new agreement. Behind the scenes, there may be some active politicking going on to make sure that the AM and TS view their products as strategic to the sale so they have a seat at the table.

Unveiling Microsoft Aspirational Models: Insights from Licensing Specialists in Renewal Meetings

In a renewal meeting, the team will likely include a Licensing Specialist (LS) who is often the only Microsoft person at this meeting who has anything more than a rudimentary understanding of how the products are licensed.   They will have worked (possibly with your reseller) to create a series of licensing models that they will present to you. These models will commonly include some variation of renewal of your current state and then a series of models that build on that. I like to call these additive models “Microsoft Aspirational”.

Occasionally the meeting may also include a Sales Manager or Sales Director to whom the account team reports to.   If this person is present, it can potentially create a new dynamic in the discussion.   They may be present for a variety of reasons ranging from demonstrating Microsoft’s commitment to you, assessing their account team, helping to “seal the deal” or something as simple as just actually meeting with a client for a change. Regardless of the reason that they have joined the meeting, they are sometimes able to take a different view of the situation. They are generally less concerned with the granularities of your EA as they are more concerned about an all up regional number.   This sometimes allows them to step back from your deal and take a bigger picture view. It’s also worth noting that among this group they are the only individuals who have any real ability to influence anything beyond basic concessions.

In our experience it’s very important that you set the stage with the account team early in terms of expectations and direct your requests to the right Microsoft person. This sets the tone for the negotiation and does not need to be confrontational.   We understand that Microsoft is a strategic vendor for most of our clients and you will want to have a strong and positive relationship moving forward.   MetrixData360 specializes in helping you to understand how to ask for concessions in language that the account team will understand and help you to avoid asking for things they cannot give you.   To arrange a free 30-minute consultation with one of our Microsoft negotiation experts, please call or email us today.

info@metrixdata360.com

905-854-0222