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How to get the best O365 Deal
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Contract Negotiations: Best Tactics to Use When Negotiating Cloud with Microsoft
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How To Completely Change the Game on Microsoft
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9 to 12 Months Prior to Renewal
Communicate your challenges:• Decreased Costs• Licensing Issues• Technology Shortfalls• Roadmap/Deployment Challenges
Rip and Replace 3rd Party will not be considered unless accomplished prior to the Renewal• New Products need to be sold and deployments started
Build your team (finance/legal/IT/Procurement)• Understand roles
Understand that Microsoft Sales and Reps Quota and Forecast is set for them• Forecast = (Last Years Spend (Annual Payments + True Ups + Non EA Purchases)) *1.2
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Know what you don’t need (Knowing What you Don’t Need is More Important Than Knowing What You Do Need)
Understand your deployment roadmap for next 12 to 18 months• Be Conservative• Map it Out• Debate it• Validate it
Solidify with Microsoft decreased costs (Help them lower their forecast)
Re-iterate to Microsoft deployment and technology challenges
6 to 9 Months Prior to Renewal
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Communicate 2 to 3 options to Microsoft that you are considering• Bare Minimum Requirements• Conservative Deployments• Ramped Options
Begin Negotiations – Don’t Worry you are Ready• You don’t need to know 100% of your needs because you know what
you don’t need
Understand the Value Gap
Microsoft Proposal (Forecast) – Your Actual Needs = Value Gap
3 to 6 Months Prior to Renewal
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Push Microsoft Hard on Negotiations• Don’t worry about harming your relationship you’re doing this
based on facts
Don’t take No for an answer• Be like a 4 year old asking for Candy
Negotiate the best deal that works for you• You control this process not Microsoft• Do not negotiate off of their strengths – negotiate into their
weaknesses
3 Months to Renewal Date
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Knowing What you Don’t Need
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Office 365 Decision Model
Business Requirements
Identified
Costs (EA Renewal)
Deployment Plan/Roadmap
Developed
Where Are You?
1. Lack of TCO – no financial justification to move forward
2. No timelines development – prepay subscriptions for 3 months and ROI is lost
3. No business case for a move – stay where you are
4. Move ahead
• Deployment Costs• Upgrade Costs• AD Remediation• Licensing Costs• People
• Use case• Employee Profiles /
Technology Needs• New functionality• Support Costs
• Realistic roll-out of all products/services identified
• Map user group/migrations
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1 24
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Office 365 Matrix
What is Microsoft Selling Me?
Knowing what you don’t need is more important than knowing what you do need!
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• 1500 Users• EA Renewal – Office Pro, Windows OS, Core CAL• Microsoft positioning – Enterprise Cloud Suite or E3 with user based
Windows• Considering a move to Exchange Online in 6 to 9 months• Own Windows 10/Office 2016• Deployed to Windows 7/Office 2013 – no plans to change desktops soon
Case Study
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• Developed 3 person team (IT/Finance/Procurement)• Had a really strong bad cop
• Reviewed Usage of Products to determine future requirements
• Optimized Server Environment for Virtualization / Move to Azure
• Dissected Office 365 and developed a realistic roll-out time frame
• Non-technical review of “click to run” versus on premise Office
• Financial Evaluation of User Subscription Licenses vs Add-Ons
• Went back to Microsoft requesting more options / better deal
The Process Used
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The Results
• Value gap 1.746M – 1.27M = 476k or ~30%• Improved cash flow• Keep perpetual license – leverage in our years or decrease costs through ramp• Provided finance and IT opportunity to choose best choice for the business
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When a Microsoft “Deal” Isn’t a Deal
• Early Commit – Included substantial discount but required 80% commitment to Office365 E5• Did not include Core CAL (valued at $40k/year)
• Method 180 Options – at List Price base on realistic roll-out of Office 365 and stepping up from E3/E1 as E5 is consumed
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Using Perpetual Licenses To Create Value Gap
• Value Gap – 14M or 14% over 5 Years• Value Gap still 15% over 3 years
• Microsoft Proposal full Office 365 Subscriptions• Perpetual + Add-On lowers Costs in Year 4 to 5• Deployment timeline is too aggressive – realistic may push Value Gap to 20M+
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About UsTrusted globally by some of the world’s most well-known enterprise companies,
is the leading provider of expertise and negotiation
services around Enterprise software contracts. Combining an unparalleled
knowledge of the DNA that make up software agreements with the ability to
understand company’s individual requirements, is able to drive out
significant costs and align agreements to business priorities NOT to those of
software vendors and their programmatic objectives. Using technology, process and
knowledge derived from the analysis and negotiation of more than a thousand
contracts, we help put explanation around the unknowns that create compliance
gaps and control spiraling costs associated with Enterprise software agreements.
SAVING YOU TIME, MONEY AND AGGRAVATION
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Our Core Value Proposition
Consulting Services
Microsoft Enterprise Agreement Negotiation
Microsoft Audit Assistance
o The value of our retainer relationships is in the personalized, and unrestricted access to all of our experts
o Retainer clients enjoy services such as published resource papers, white papers, webinars and training sessions
o Retainer client receive a 30% discount on additional engagements (outside of retainer)
o Microsoft is getting much more aggressive with audits
o Free up your time and resources
o Method 180 has a proven track record of dramatically reducing compliance costs
o Most organizations leave money on the table with Microsoft during negotiations
o Method 180 averages 25-30% cost reduction on enterprise agreement renewals
o Be informed and educated about how to drive costs out of your enterprise agreement
Thank you & Questions?
Mike Austin – VP Service DeliveryPH: 1-888-978-5129 ext 701
@austinmik@infomethod180
