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. 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. Most customers have managed the jump to 365 and are experimenting with azure. The good news is that the window of agreement for new cloud editions with Microsoft is still open. As a public company, Microsoft`s mission is to accurately predict revenue. To do this, the company must have a clear overview of its sales pipeline and be able to close purchases and renewals faster and earlier in the quarterly sales cycle. There are a limited number of legal resources and license desks to process these transactions, and it is almost impossible to process paperwork less than two weeks before a calendar year, fiscal year or end of the quarter. Managing these largest volumes in deal volume is a challenge for Microsoft`s operations, and delays in this pipeline can have a domino effect on quarterly and annual revenue, share price and overall market perception. Customers should use the supplier`s desire to prevent purchases and extension periods accordingly. Contrary to popular opinion, Microsoft may be more flexible in negotiations outside of their peak sourcing periods. Microsoft has announced changes to its enterprise agreement program that will begin on July 1, 2016! We`ve put together the main questions and answers to help you find your way.
Read the full article … 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. 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.