Guiding a Hospital Through a Complex Microsoft Licensing Renewal Process
Negotiate a cost-effective Microsoft EA (Enterprise Agreement) renewal that is aligned with business and technical needs.
A data-driven recommended renewal package and coaching to negotiate with Microsoft.
Served as a Trusted Advisor to highlight the key details of the client’s Microsoft license renewal.
Realized further cost savings by identifying redundancies within the client’s software environment.
Recommended a renewal agreement that met business and technical needs, and achieved a 32% cost savings.
The Business Challenge
A $1B children’s hospital was up for renewal of its Microsoft enterprise agreement (EA). Microsoft had offered them a renewal in a bundle license format that was 40% more expensive than their previous licensing agreement.
The client engaged e360 to help them understand the key features of the bundled offering and advise them on the best approach for their organization, relative to their Microsoft license renewal.
e360’s Microsoft Renewals team has a deep understanding of Microsoft’s portfolio of products as well as their licensing strategies. Over the course of a two-month engagement, our team conducted an extensive investigation of both the Microsoft EA and the client’s technology environment. Specifically, our team evaluated:
• Pricing and features of each bundled arrangements or “SKU” offered by Microsoft.
• Details of the licenses that were purchased through the original Microsoft EA.
• How licenses were actually being used (including whether they were not being used).
• The client’s migration and upgrade plans over the course of the next three years to assess implications on licensing requirements.
Using data from the above investigation, our team conducted a thorough analysis that provided the client with cost comparisons, industry average pricing, and risk factors associated with different combinations of Microsoft’s SKUs. We presented the client with a summary of our analysis and a recommended Microsoft license renewal arrangement that was aligned to their current and upcoming business needs. Finally, based on our extensive understanding of Microsoft’s licenses, we coached the client on the best way to re-negotiate with the vendor to reduce spend and obtain the licenses they required.
Through our engagement, our client was able to negotiate a right-sized renewal of their Microsoft licenses for the next three years.
Our client realized 32% cost savings on their renewal by renewing only the Microsoft SKUs they needed, rather than purchasing the fully bundled SKU that Microsoft had initially offered.
Our analysis and guidance helped the client fully understand the features that were included in their bundled SKU. Additionally, they identified redundancies between these Microsoft features and existing softwares and eliminated those softwares to further reduce their software spend.
Our client leadership, including C- and VP-level executives, were highly impressed with the level of knowledge and guidance e360 was able to provide during a critical juncture in their software expenditure journey.