Don’t Be Afraid of Your Microsoft Negotiation; How to Win a Microsoft Negotiation 

Procurement and IT departments have many difficulties with Microsoft, especially when it comes to negotiating with them. Many organizations are frustrated with the tech giant, assuming that they hold all the power in negotiations and that there’s no point in trying to negotiate.

This could not be further from the truth. We will explore here why procurement managers and IT departments should not be afraid of Microsoft and how negotiating with them can actually be a beneficial experience.   

Why Procurement and IT should not be afraid of Microsoft’s negotiating team 

  1. Like any other company, Microsoft is a business: Microsoft may appear to be a single entity, but it is essential to keep in mind that, at its core, it is still a business like any other. Microsoft’s primary objective is profit, and they accomplish this by offering products and services that meet the needs of its customers. Microsoft, like every other company, recognizes that customer satisfaction is essential to its success. This indicates that they frequently cooperate with their clients to find a solution that benefits both parties. This is because mistreating their customers can drastically reduce their sales and revenue  margins.  
  2. Business relationships require negotiation: It is essential to keep in mind that you as an organization are not the only one going through the negotiation process because it is a natural part of any business relationship. Microsoft has a team of experienced professionals who are committed to developing and finding the best solutions for their clients and engaging in daily negotiations with customers. You can demonstrate your value as a customer and your commitment to working with Microsoft to achieve your objectives by effectively negotiating.  
  3. When negotiating with Microsoft, you can expect a positive outcome: Negotiating with Microsoft doesn’t have to be a stressful or negative experience. It can be a positive outcome that builds a stronger, more binding relationship with the company. By negotiating effectively, an organization can show Microsoft that they are committed to working with them and that they value their products and services.   

The 3 Benefits of a Good Negotiation with Microsoft   

There are three (3) benefits we want to highlight that can be gained by Procurement and the whole company when successfully negotiating with Microsoft.    

  1. It can lead to better pricing, which can make a significant difference in the overall cost of using Microsoft products and services. Organizations can also negotiate more favorable licensing terms, which can help them save money and avoid costly penalties for non-compliance.  
  2. In addition to the financial benefits, negotiating well with Microsoft can provide access to new products and services that can help organizations stay ahead of the learning curve and be competitive in their respective industries. Building a positive relationship with Microsoft can lead to increased collaboration and support, which can be invaluable for organizations that rely on Microsoft products and services to run their businesses.  
  3. A good negotiation with Microsoft can open up opportunities for joint marketing and other initiatives that can help organizations promote their brand and reach new audiences. Organizations can achieve their business objectives more effectively and efficiently by collaborating with Microsoft, which can assist them in long-term expansion and success.  

How to Prepare for Your Negotiation with Microsoft  

Although it can be difficult to negotiate with Microsoft, if Procurement or IT prepare well, they can improve their chances of success. To get ready for your negotiation with Microsoft, here are some pointers:   

  1. Research is a good choice: Organizations should thoroughly research Microsoft’s products, services, pricing and find out their strengths and weaknesses and identify areas where they can negotiate.  
  2. Identify your organizational needs: Before entering a negotiation, organizations should determine their needs and what they are willing to compromise. You should know your IT and software roadmap. This will help you to stay focused and avoid making unnecessary concessions.  
  3. Collate relevant information: Organizations should gather all relevant information and documentation to support their negotiation points. This can include data, actual use, reports, and contracts concerning their query.  
  4. Decide what leverage you have: Organizations should identify their leverage points in their negotiation process, such as their budget, competitors’ prices, or their organization’s market share. Use this leverage to your advantage.  
  5. Develop relationships with the Microsoft team: Organizations should foster a positive relationship with the Microsoft team being indulged. Building rapport can help them negotiate more effectively and reach a mutually beneficial agreement. Also, asking vital questions with the Microsoft team will help organizations understand their needs and concerns and find common ground. 
  6. Put together a team: This will be the foundation on which you will build a strong negotiation or discount case. A team is essential to your research scope, internal investigation as well as deciding on the best foot to put forward. Get members of the team to know what they want to achieve at the end of the negotiation with Microsoft and spell these out clearly. The team members could be from Legal, IT, Procurement and or a third-party consultation to give you an independent and unbiased outside view of your IT situation. The team can also look at what you don’t need during the preparation stage as this will help set a clear path to ask for your exact demands. 

The blunders to avoid when negotiating with Microsoft   

When negotiating with Microsoft, organizations need to approach the process with care and strategy. Here are some common mistakes to avoid:   

  1. Failure to research enough: Before entering negotiations with Microsoft, you need to do thorough research and understand your own needs and priorities. Without proper preparation, organizations may not be able to negotiate effectively and may end up agreeing to terms, licenses and Cloud services that are not in their interests.  
  2. Only focusing on price: Price is a crucial aspect of any deal, but it should not be the only consideration. An organization needs to consider factors such as support, training, and licensing terms.  
  3. A lack of consideration for alternatives: While Microsoft may be the market leader in many on-premises and Cloud products, you should think about other vendors and solutions. This can help negotiate better terms and ensure you get the best value for your money.  
  4. Just don’t ask for a discount: Don’t ask for a discount. Know exactly what you want. How much you want to pay for your contract with the products and services you have added. Asking for a round percentage discount doesn’t look good. You should let Microsoft know that you have thought about your contract, products, services and the price you want to pay for it.  
  5. Avoid negotiating with your weakness: Go to the table and negotiate based on your strength and what you want. Your negotiation should be to get the best deal that works for your organization and delivers value and the best results. You can be in control only when you know what exactly you have and want from Microsoft. Present facts and not speculations or conjectures when asked questions or for clarity.
  6. Don’t negotiate alone: Get in touch with Microsoft industry experts who negotiate on a daily basis.  

Do you want to Ace your Microsoft Negotiation?   

For a CIO, IT manager or procurement manager within an organization to ace their Microsoft negotiations, they should build a business relationship with Microsoft to overcome the fear of dormant negotiations. Organizations can strengthen their relationship with Microsoft and ultimately achieve greater success by approaching negotiations with confidence and a willingness to work with them.

But don’t get too close. Microsoft is good at building relationships with its customers. This will help them to sell products and services which you don’t need.    

At the end of the day, we can say that you don’t need to be afraid to negotiate with Microsoft in the right way; the outcome could be mutually beneficial.  

Are you still doubting how to plan your Microsoft negotiation?  

Contact us and we’ll help you negotiate with Microsoft with Herculean strength.   

Get in contact

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