Negotiating contracts with Microsoft can be a daunting task, but with the right strategy, you can gain significant benefits. Here are some practical tips to get better terms:
- Understand your current license agreement
Before you begin negotiating, it is essential to have a thorough understanding of your current licensing agreement. This includes the number of licenses you have, the types of products and services included, and the terms that have been agreed upon. Look closely at the cost structure, usage patterns, and any associated costs. This insight will help you ask more specific questions and make better proposals.
- Know your needs and goals
Before you enter into a negotiation conversation, it is important to be clear about your needs and objectives. Do you want to save costs, gain access to new features, or perhaps increase flexibility? By listing your goals, you can negotiate more effectively and communicate your requirements clearly.
- Research the market
Look at what other companies are paying for similar Microsoft products and services. This will give you a point of reference and can help you determine whether the terms you are being offered are in line with the market. There are often variations in prices and terms, so it is useful to know where you are.
- Research alternative licensing models
Microsoft offers several licensing models such as Enterprise Agreement, Microsoft Customer Agreement, and other flexible models. Investigate these options and ask if another licensing model would better suit your needs. Sometimes an alternative model may better suit your usage pattern or budget.
- Negotiate prices and discounts
It is rare that the initial price Microsoft offers is the final price. There is usually room for negotiation. Ask for discounts based on the size of your purchase, the length of your contract, or the total volume of your licensing agreements. Large purchases or long-term contracts can often result in significant savings.
- Ask for additional value or added services
During negotiations, you can also ask for additional value or added services at no extra cost. This could include additional training, technical support, or access to premium support. Microsoft is sometimes willing to add extra value to sweeten a deal.
- Consider a longer commitment
Sometimes a longer commitment can lead to better terms and lower prices. This can be especially beneficial if you know you will need Microsoft products and services for a longer period of time. Weigh the benefits of a longer contract term against the benefits of flexibility.
- Document everything
Make sure that all agreed terms are clearly documented. This includes prices, discounts, contract duration, and any other relevant details. Good documentation helps to avoid misunderstandings and ensures that you get exactly what you agreed to.
- Hire an independent expert
If the negotiation is complex or extensive, it may be helpful to bring in an independent expert who has experience with Microsoft licensing agreements. These professionals can help you navigate complex terms and get the best deal for your business.
- Evaluate regularly
After concluding your contract, it is important to regularly evaluate whether the terms still meet your needs. This can help you to be better prepared for future negotiations and to implement any changes or adjustments in a timely manner.
Conclusion
Negotiating with Microsoft can be challenging, but with a good understanding of your needs, thorough preparation, and a strategic approach, you can achieve significant benefits. By following this guide, you can position your company for better terms and a more cost-effective partnership with Microsoft.