The importance of excluding Future Affiliates in your Microsoft Enterprise Agreement

February 14, 2024

If you’ve ever embarked on the journey of securing a Microsoft Enterprise Agreement (EA), you’re well aware that what initially appears straightforward can often reveal layers of intricacies. One such facet is the inclusion of “Future Affiliates.” In this blog post, we’ll delve into the implications of including or excluding Future Affiliates in your Microsoft Enterprise Enrollment and why embracing flexibility can prove advantageous.

Unpacking Enterprise Enrollment

The Microsoft Enterprise Enrollment stands as a pivotal document required for establishing an EA. It delineates the contours of the enterprise covered by the agreement, including which entities are classified as affiliates. Customers confront a spectrum of options when defining their enterprise, ranging from encompassing all affiliates to specifying exclusions.

Decoding Future Affiliates

At the heart of the matter lies the decision surrounding acquisitions and their integration into the Enterprise Agreement. Opting to include Future Affiliates mandates that if the customer acquires a company without its own EA, they’re bound to incorporate all acquired users via a true-up on the subsequent anniversary post-acquisition.

Conversely, electing to exclude Future Affiliates absolves the customer from the obligation to true up acquired users under their Enterprise Agreement. Yet, there’s a caveat: once acquired users become indistinguishable from legacy employees, they must be incorporated into the agreement.

Advocating for excluding Future Affiliates

Excluding Future Affiliates often serves as a safeguard from both cost and license management perspectives. Consider a scenario where a customer acquires a 1000-user company shortly after signing their EA. Were Future Affiliates included, the customer would be compelled to true up for all 1000 users by the ensuing anniversary, irrespective of integration progress.

However, acquisitions usually entail a transition period, during which redundant positions may be eliminated, and business structures reconfigured. By excluding Future Affiliates, the customer retains maneuverability. They can gradually integrate acquired users and true up solely for those users fully assimilated into the enterprise, thereby curbing costs and optimizing licensing.

Appreciating nuance

The decision to include or exclude Future Affiliates is but one example of the nuanced deliberations inherent in EA management. Every facet of your agreement warrants meticulous consideration to mitigate risks and optimize value.

Seeking expert counsel

Navigating the labyrinth of Microsoft licensing agreements demands expertise. At BeSharp Experts, we specialize in aiding organizations in optimizing their EA strategies. Whether grappling with Future Affiliates or other aspects of your agreement, our team stands ready to offer guidance.

Conclusion

By infusing flexibility into your Microsoft Enterprise Enrollment through the exclusion of Future Affiliates, you can reap substantial benefits in terms of cost control and license management. Armed with a comprehensive understanding of this decision and fortified by expert advice, you can confidently navigate the complexities of your EA, charting a course towards strategic success.