Why you should think twice before you renew your Microsoft contract

Microsoft contract renewal can be a big deal for organizations as this singular move has the potential to either up their budget or help save huge sums of money. The savings bit depends on how well the contract is expertly optimized to achieve the intended outcome. On the flip side, with a bad or lack of optimization, your organization may be left with running around to raise the expected money to meet the financial obligations of the agreement.   

These two scenarios I believe your organization will want to take the side of the latter which is to save money. June is here; Microsoft’s fiscal end of year and hence contract renewal and in some cases, license purchases are expected.  What are your plans to renew your Microsoft contract to favour your budget.  

Note that your contract or agreement should not only focus on reducing costs but may also look at reducing some effects of the terms and conditions therein the renewal or purchase document. As you plan to renew your Microsoft contract, consider the following pointers.  

How well do you understand the current Microsoft offerings? 

This is very important in equipping you to take a stand of confidence during the renewal conversation or negotiations. Understanding Microsoft’s offers at the time of your renewal and how well or otherwise it will meet your organization’s needs gives a good idea of what and how to ask. You can make informed decisions when it comes to agreement renewal.   

Your good product and services knowledge ensures you can get the best value for your money as you cannot be bullied or tricked into making certain decisions not in your favour. Even after decisions are taken, your knowledge can allow you to undertake the necessary reviews to maximize benefits and features in the agreement you are about to or is already using.  

One way that understanding Microsoft’s current offerings can help with agreement renewal is by assessing whether your current package or subscription still meets your needs and requirements. Microsoft is constantly updating and expanding their products and services, so it’s important to stay updated on the latest features and capabilities to ensure that you are utilizing optimally all the tools available to you.  

Have you considered the opinion of an independent expert for a review? 

An independent expert can provide valuable insights and guidance to your organization going into a Microsoft agreement renewal. An independent expert from an unbiased perspective can help make informed decisions and negotiate better terms with Microsoft.  

Your core duties as an organization are not keenly following Microsoft’s products and services update since there are operational duties as an organization you are saddled with. Hence you may not be on top of the agreement terms, and this is understandably so. However, an independent expert such as Q-Advise is all about Microsoft ecosystem, so we understand the dealings and happenings. We know how to work around the complex nature of Microsoft agreements to optimize them and help you make the best decisions like saving on purchases.   

As independent unbiased cloud and licensing experts, we on a daily basis engage in negotiations and renewal conversations with Microsoft and understand how to peck pricing, when to ask for discounts with the ability to spot terms that are not favorable going into the future. Working with us, you are assured of getting the best deals after renewal.   

An independent expert stays up to date with developments in the Microsoft ecosystem and can know which currently released product or service will work in your peculiar cases after a thorough needs assessment is completed. For example, Microsoft cloud has a lot of potential for delivering solutions but there are subtle price hikes when you get in there. However, our experts can guide you to save substantially even whiles in the cloud.  

What are the available alternatives to your needs? 

The renewal period you should understand is an opportunity to optimize your contract and make sure you are deriving the utmost benefits as an organization. Today’s technological world is rapidly evolving and there are plethora software, products, and services on the market. Before you go to the renewal table, consider if any alternatives can give you a better solution and help you cut down on costs. With the knowledge of this alternative, you can improve your position to get a good deal during negotiation as Microsoft knows it is in competition with various vendors.   

Again, do not settle for alternatives for the mere fact that it is helping you cut down on cost, but because it is solving needs in your organization. An alternative that does not meet your needs will end up increasing your costs sometimes triple in your attempt to undo the damage caused. Align with an independent experts view whiles scouting for alternatives.   

Getting alternatives will help you avoid a situation of vendor lock-in. Vendor lock-in in this case is where you depend solely on Microsoft’s products and services when sometimes it may not be the watertight solution you need. Explore different alternatives to have access to better features, pricing plans and support services that may not be available with your existing contract. Also, alternatives allow you to weigh whether the solutions delivered by Microsoft during the period of your contract are satisfactory.   

Considering available alternatives before your Microsoft contract renewal allows you to stay competitive in the market. With so many competitors offering similar products and services, it is important for your organization to constantly review options and make sure you are not missing out on better deals or opportunities. By exploring different alternatives, you can also negotiate a better deal with Microsoft, as you have a benchmark to compare against.  

Consider the cost factor before your renewal.  

This is a crucial factor to look at thoroughly before you commence your renewal. This is because the cost of a Microsoft contract renewal can have a significant impact on your organization’s budget and financial planning for the upcoming years.  

The cost factor in a Microsoft contract renewal directly affects your organization’s bottom line and needs to be looked at. The cost of your Microsoft contract renewal can include not only the licensing fees but also support and maintenance costs, which can add up to a considerable amount. Therefore, it is essential to carefully analyze and negotiate the cost aspect of the contract to ensure that it aligns with the organization’s budget and financial goals.  

It is critical as an organization to ensure that you are getting the best value for money when it comes to software and services. A high-cost contract or renewal may not always equate to a higher value, and therefore, it is essential to evaluate the cost against the features and benefits provided by Microsoft.  

Again, the cost factor can also impact an organization’s ability to scale and grow. If a Microsoft contract renewal is too costly, it may limit your organization’s capacity to upgrade or add new features and services in the future. An independent Microsoft cloud and licensing experts can help you identify optimization opportunities to get the best closure. If the cost factor is not expertly considered, it has the potential to hinder your organization’s growth potential and put you at a disadvantage against competitors who may have more flexibility and resources.  

Is your software license roadmap ready? 

As you utilize Microsoft products and services, you should have a software license roadmap in place. Not only will this help with the renewal negotiations process, but also provides a structured approach to managing the usage of licenses within your organization.  

With a roadmap in place, you have a clear understanding of your current and future licensing needs. By mapping out the licenses being used and their expiration dates, you can plan for any necessary renewals or upgrades. This eliminates the risk of unexpected license expirations, which could lead to potential financial and operational disruptions.  

Moreover, having a license roadmap in place allows your organization to optimize licensing costs. By identifying unused or underutilized licenses, you can save money by either repurposing licenses or cancelling them altogether. This is especially helpful during your Microsoft renewal negotiations, as you have a clear view of all licenses and their usage and can negotiate better deals based on specific needs.  

Let our team of experts guide you to a successful renewal. 

Preparing for a renewal, going through the entire phase, and achieving your desired outcomes can be intensive. There are important optimization opportunities you might miss, and these are great saving avenues. Working with our team of experts allows you to do a thorough job in your licensing position and gives you peace of mind.  

We are familiar with and understand how Microsoft executes renewals with clients and can make available that insight to give you an added advantage to land the best deal. We will help you plan and execute your renewals smoothly.  

We will look at your current roadmap or assist you with one to set the right tone for future license purchases, use and monitoring to get the best value for money. Having a roadmap will aid in managing software deployments and updates.   

We will guide you in saving on cost and share with you how pre-owned or used software licenses can offer the same value as new ones. These licenses are free of any legal issues and will give you the peace of mind needed.  

Send the team an email…. [email protected] on your compliance, management, and overall efficiency in managing licensing needs. 

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