Significant changes may be on the horizon for small and mid-sized businesses currently under an Enterprise Agreement (EA). Specifically, there is suggestion that Level A customers, currently serving 500 to 2,399 users/devices, may transition to the Microsoft Customer Agreement (MCA). This article explores what this potential change means for Level A customers and how they can prepare for the future.
Understanding the transition:
Historically, Microsoft has gradually reduced incentives for Level A EAs, encouraging customers to migrate to newer licensing models like MCA. If this shift is implemented, Level A customers would be placed in the MCA category, impacting their licensing strategies and cost management.
Implications for Level A customers:
- Price considerations:
- Potential price adjustments: Transitioning to MCA could involve price changes. While Microsoft suggests prices may remain comparable or even decrease in some scenarios, customers should be prepared for potential adjustments.
- Loss of EA benefits: Customers may lose specific benefits such as discounts on on-premises products with Software Assurance (SA), potentially leading to higher costs with alternative licensing options.
- Complexity of licensing:
- Transition challenges: Moving to MCA introduces new terms and conditions, potentially resulting in more complex licensing scenarios. Customers may need to manage multiple contracts and engage with different vendors, increasing administrative burdens.
- Product and support availability:
- Microsoft 365 Considerations: Under MCA, customers may encounter restrictions in how they license Microsoft 365 products, such as losing options like User and Device Subscription Licenses (User SLs and Device SLs). This may require adjustments in purchasing strategies to ensure full coverage without additional costs.
- Contract Management:
- Automated renewals vs. manual renewals: Unlike manual renewals with EAs, MCA renews automatically. While this simplifies contract management, it may reduce negotiating leverage in future purchasing decisions.
Preparation steps for Level A customers:
Review current contracts:
Understand when your current EA expires and whether this triggers a transition to MCA. If renewal is imminent, prepare for potential changes in licensing and pricing.
Collaborate with independent experts:
Consult independent experts specializing in Microsoft licensing to facilitate a smooth transition. They can provide insights into cost implications, alternative licensing options, and negotiation strategies.
Evaluate license needs:
Assess your organization’s software requirements and usage patterns to determine the most cost-effective licensing model under the new MCA framework.
Plan for compliance and costs:
Ensure your current usage complies with licensing terms to avoid penalties during audits. Incorporate changes in licensing costs into your organization’s budget planning.
Conclusion:
The potential transition from EA to MCA for Level A customers represents a significant shift in Microsoft’s licensing strategy. By remaining proactive and collaborating with experts, customers can navigate this transition effectively, ensuring ongoing compliance and operational efficiency in their software license agreements.
Are you prepared for the transition from EA to MCA? Contact BeSharp Experts today for expert guidance in smoothly and cost-efficiently navigating changes in Microsoft licenses.