Mastering Your Enterprise Agreement

A Strategic Guide to Rightsizing and Optimization

Introduction

In large organisations, a Microsoft Enterprise Agreement (EA) is a pivotal tool for managing software licencing. While EAs come with benefits, they often aren't the most flexible. They also last three years, which means that as your usage and tech stack changes, your EA will need to, also. Rightsizing and optimising your EA is not a once-every-three-year endeavor. It’s a continual process of tracking and evaluating where you can get the most out of your investment to eliminate waste or shelfware.

How do you optimise your EA? And what do you need to consider to ensure maximum ROI on your Microsoft spend?

In this guide, we’ll walk you through strategies and insights to help you navigate this complex landscape.

What is a Microsoft Enterprise Agreement?

An EA is a Microsoft software licensing agreement for organisations with more than 500 employees. Smaller organisations typically use a Microsoft Cloud Solution Provider (CSP) programme. However, as technology evolves and the industry changes, increasingly organisations are re-evaluating and seeking guidance to determine the type of licensing agreements that are best for them.

Microsoft Enterprise Agreement offers the largest choice of licences and online services including cloud services, traditional software licences, and a mandatory support and maintenance plan. However, not all Microsoft products and services are available in an EA. To offer bulk discounts, Microsoft may include additional technology that organisations don't actually need. So, understanding your true needs and requirements is essential before you sign up.

As mentioned, EAs last for three years, and sometimes up to five years. They can be renewed; however, most organisations have enough changes at the end of their term to justify signing a new contract.

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Understand your current EA

The first step is to accurately understand your current EA and how it compares to your actual usage, organisation needs, and how your organisation is planning to change or grow in the next five years. This includes taking a solid look at your tech infrastructure, cloud strategy, and changing IT and workstyle environment.

Conduct yearly licence audits

Begin with a comprehensive audit of your current licences across all departments, users, and devices. Once you have a baseline, set up a process to go through this exercise at least yearly to maintain up-to-date knowledge of licence status, fluctuations, and usage needs.

Find out what’s covered in the EA. Clarify the full breadth of software products that are covered under the EA and confirm needs/usage.
Discover what people are actually using. Encourage departments to communicate about their software needs and actual usage. Are they using shadow software? If so, is it because a Microsoft product is not meeting their needs? This can help identify software gaps, consolidate licences, and identify overlapping requirements.

Need help auditing your EA? SoftwareOne Microsoft EA experts can simplify the process, saving you time and resources.

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Next Level Hack

Establish a licence management policy. Create a formal policy for software procurement and usage. This ensures that all departments follow consistent practices, reducing the likelihood of rogue purchases that can complicate your EA. Or set up a platforms engineering team to identify and offer a consistent, user-driven set of software solutions.

Identify current and future needs

The next step is to consider your organisation’s current and future software needs.

Determine growth projections. How is your organization expected to grow? Will you need more licences or different software solutions?
Nail down departmental requirements. Engage with different departments to understand their specific software needs and challenges.
Future proof. Consider emerging technology trends, such as cloud computing or AI, that may influence your software requirements.

SoftwareOne impact dashboards deliver complete visibility showing you the impact to your bottom line.

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Next Level Hack

Create a centralised dashboard. Develop a centralized dashboard that aggregates data from all software licences. This provides a holistic view of usage, compliance, and renewal dates, making it easier to manage your EA effectively.

Rightsize your EA

It’s almost a given that your EA needs will change. Many organisations uncover that they are not utilising their licences to maximum capacity, some software has low adoption, and that headcounts have or will be changing. It’s important to rightsize your EA so that you are not overspending and so that you have the coverage you need as your organisation moves forward.

Tabulate licence counts

With solid data on your needs and gaps, establish what’s truly needed in your EA and what can be adjusted for a more efficient and cost-effective agreement.

Determine how many licenses you need.
Decide which licenses you no longer need.

Get a second opinion

Before you sign, get a second opinion from an unbiased third party that can review the agreement and discuss options to ensure it supports your long-term goals.

Next Level Hack

Automate licence tracking. Implement software asset management (SAM) tools that automatically track license usage and compliance in real-time. This ensures you stay informed about underutilised licences and can act quickly to adjust your agreement.

Optimise your EA

Rightsizing is part of optimising, but there’s more that you can do. Your goal is to get the maximum ROI and value from your Microsoft Enterprise Agreement. To achieve this, you need to ensure that you have the policies, processes, and support needed to continually track in real-time your licensing and software needs, usage, and adoption.

Implement governance frameworks

A governance framework helps ensure compliance and optimise software usage.

Designate an asset management team. This team is responsible for overseeing software usage, compliance, and license management.
Develop policies. Establish clear policies around software usage, procurement, and compliance to streamline processes.

Next Level Hack

Implement a shadow IT policy. Monitor and manage shadow IT within your organisation. Ensure that all software used is accounted for and integrated into your EA, preventing compliance issues and unexpected costs.

Utilise software asset management tools

Investing in tools to enhance visibility and control can save you money in the long run by providing transparency, clarity, and a lens on efficiencies.

Deploy tracking tools. Use software asset management (SAM) tools to track usage, compliance, and license expirations.
Include analytics. Leverage analytics to gain insights into software performance to inform future purchasing decisions.

SoftwareOne AI data analytics deliver the details you need to make better software asset management decisions. Explore SoftwareOne analytics.

Next Level Hack

Use AI-based analytics. Newer AI-driven analytics tools can predict usage patterns and identify trends. This will help you anticipate future software needs and negotiate better terms via data-driven insights.

Prioritise training

Proper training can increase software adoption and maximise the value of your Microsoft software. Train new users and retrain/update existing users so they can get the most out of their tools.

Tailer user training. Develop training tailored to different user roles to enhance software utilisation.
Provide ongoing education. Provide continuous education on new features and updates to keep teams informed.
Create feedback mechanisms. Establish channels for users to provide feedback on training effectiveness and software functionality.

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Next Level Hack

Conduct regular workshops. Host regular workshops or training sessions for employees to raise awareness about software usage and compliance. This encourages responsible usage and helps identify potential areas to optimise.

Manage change effectively

When introducing new software or changes to the EA, you’ll want to ensure that employees are aware of and understand the implications. Follow best practices for change management for best results.

Create a change management plan. A formal change management plan can guide the organisation through software transitions.
Communicate changes. Clearly inform employees and stakeholders of any changes to the EA or software and its impact.
Gather feedback. Create channels for employees to provide feedback on software usability and needs, fostering a culture of continuous improvement.

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Next Level Hack

Use version control for software. Implement version control for software applications to ensure you’re always using the most efficient and secure versions. This can reduce licencing costs associated with outdated software.

Strategically plan for future EAs

It’s a never-ending cycle, but with the right tools and partners in place, your EA strategy can grow more effective over time. In the year before your EA approaches its renewal date, develop a strategic plan that includes learnings, adjustments to needs, potential alternatives, and preparation for the negotiation.

Evaluate current needs. Conduct a comprehensive assessment of current software usage and future needs or run real-time SAM reports.
Research alternatives. Explore alternative vendors or licensing models that may offer better value.
Prepare for negotiation. Use insights gained from audits and departmental feedback to negotiate terms that reflect your organisation's needs.

Next Level Hack

Don’t wait until the last minute. Track and review your EA on a regular basis so you can come to the table with clear needs and cut through the ‘offers’ they may present. Early preparation can give you leverage in negotiations, especially if you’ve identified potential areas for improvement based on your audits.

Engage with a trusted partner

Building a strong relationship with an unbiased trusted partner can yield significant benefits. If you don’t have a partner who will serve as a trusted advisor and on your side of the table, look for one that offers more than just a transactional approach. A true partner will:

Hold a long-term partner mindset. Seek a partner that demonstrates it has your best interests in mind and is vested in establishing a collaborative, supportive relationship with you and your team.
Bring deep expertise. Inquire how long they have been in the business, their status with Microsoft, and their footprint in the market.
Demonstrate good communication skills. Your partner should make you feel supported and have your best interest in mind.

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Next Level Hack

Engage in continuous vendor evaluation. Don’t just assess partners at the time of renewal. Continuously evaluate partner performance and alternatives throughout the agreement’s life cycle. This ensures you always have the best options available.

Conclusion

Rightsizing and optimising your EA is not a one-time effort, but an ongoing process that requires regular assessment and adjustment. By taking a strategic approach—reviewing your current licences, implementing governance, and investing in training—you can ensure that your EA provides maximum value to your organisation. By continually adapting to changes in business needs and technology, you can maintain an EA that aligns with your organisational goals, drives efficiency, and realises deeper ROI.

Managing your EA process can be a lot to deal with on your own, especially on top of heavy workloads. Having a trusted advisor on your side to support you and provide guidance can be invaluable and help ensure that your signed agreement truly meets your needs, is optimised for costs, and sets you up for success in the years to come.

On our customers’ side. Always.

EAs can be complicated and ever-evolving. Having a trusted consultant on your side of the table at renewal time and to optimise beyond can save you time, resources, and money. SoftwareOne is a leading partner for organisations that want a trusted advisor and proven expert to help evaluate, rightsize, optimise, and manage their EA.