In a three-year contract, the number of desktop computers and qualified users can be adjusted for each anniversary of the contract. This allows for greater flexibility to meet changing requirements. Use rights are limited and expire when the contract expires. Changes in today`s business climate, coupled with Microsoft`s mission to relocate businesses to the cloud, are changing the way it does business with its largest customers. Companies considering renewing their enterprise agreements or acquiring supplier offers for the first time can use the forces that fuel Microsoft`s behavior at the negotiating table. The EDOS program is ideal for large companies and government organizations with more than 5,000 users. As part of an EA, customers can subscribe to microsoft online services such as Microsoft Exchange Online, SharePoint Online and Lync Online. Services should not be licensed at the company level, but can be reserved for each user. The customer granted either the standard edition or the corporate edition of each service.
The validity of the EDOS is three years and is related to an EA. While the vendor`s cloud offerings may be the future of its business, most Microsoft customers are still operationally and contractually blocked in on-premise deployments. There are many ways to license and/or subscribe to Microsoft products. The Licensing Solutions Provider or the account employee of a given company may not be well aware of all the options available. However, they are well trained (and motivated by incentives) to encourage customers to increase the cost of licensing. Make sure you ask Microsoft`s licensing specialists how to better structure licensing for reduced expenses and consider getting impartial expertise to help the sourcing team review the recommendations. When signing the agreement, the customer must define and communicate to Microsoft the number of desktop computers or qualified users as well as Microsoft Enterprise products or Enterprise Online Services. This information represents the first purchase. Each anniversary is due to a “True Up Order” for additional desktops or qualified users, based on which the total cost for the previous year is calculated.
Under a traditional agreement on microsoft Enterprise, the customer is allowed to authorize corporate products individually or as a standard platform. However, at least one enterprise product must be standardized throughout the company. There are increasingly licensing and subscription optimization challenges in Microsoft transactions, as well as new cost, flexibility and licensing/subscription opportunities you can capitalize on. As Microsoft continues to make a transformation and business demands and usage requirements are changing rapidly, customers should prepare for a more demanding purchasing and supplier management environment. Microsoft`s mission is to transfer its customers within the traditional on-premise software company to its subscription-based cloud services. Revenue from its cloud commercial offerings is growing strongly, while traditional software sales are declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success will be measured against the success of this mission, and customers will be under increased pressure to travel to the cloud or to pay for on-prime-price solutions through increased contract and price complexity.