When signing the agreement, the customer must define and communicate to Microsoft the number of desktop computers or qualified users as well as Microsoft Enterprise products or Enterprise Online Services. This information represents the first purchase. Each anniversary is due to a “True Up Order” for additional desktops or qualified users, based on which the total cost for the previous year is calculated. Under a traditional agreement on microsoft Enterprise, the customer is allowed to authorize corporate products individually or as a standard platform. However, at least one enterprise product must be standardized throughout the company. If EA`s eligible companies can make reasonable prices, they will ultimately have to continue to settle for the annual down payment and will not have the option to reduce the number of subscriptions by mid-year. However, it is useful that all your products – both in the cloud and in the field – are available in one agreement. Ea is a great option for this, but with the programmatic reductions removed, the benefits decrease compared to CSP. The aspects that made EA difficult to deny no longer exist, especially for users with less than 500 seats. It would be worth it if companies at least did their homework on alternatives. For organizations with more than 2,400 seats, Microsoft offers an additional programmatic discount that would increase the gap. In a three-year contract, the number of desktop computers and qualified users can be adjusted for each anniversary of the contract.
This allows for greater flexibility to meet changing requirements. Use rights are limited and expire when the contract expires. On October 1, 2018, Microsoft removed the programmatic discounts offered to A-level customers on EA (customers from 250 to 2399 seats). Without these built-in discounts, EA doesn`t offer higher prices than other volume licensing programs, without your Microsoft team taking care of discounts. EA awards are now very much on par with other programs such as CSP, which have much lower minimum requirements to launch the agreement. At similar prices, companies should seriously begin to seriously assess the pros and cons of EA over other options. For example, an EA has more complex contract documents, a high ex ante annual cost and minimal flexibility to reduce your subscriptions. Even if your company qualifies for an EA and has more than 500 seats, these changes may encourage you to look for other options.
There are pros and cons of both agreements, and both do not match everyone – but these recent changes could force companies to consider alternatives. Ea has for many years been the flagship licensing program for companies with more than 250 users or devices that want to standardize their organizations on enterprise products such as Windows OS, Office Pro and cal Suites. EA is an asset as it provides support and other benefits of provision and training via Software Assurance and offers predictable prices for the duration of the 3-year agreement. If you meet these criteria, it was difficult to explain why you don`t sign up for an EA, as discounts have largely replaced alternatives. Another advantage of EA is that it mixes on-premise and cloud products on the same contract that was only 100% cloud until the recent addition of server subscriptions to the Cloud Solution Provider Licensing Program (CSP). A subscription to the enterprise agreement is also based on the EA and offers the possibility of paying licenses for establishments rather than acquiring them. This could bring tax benefits to clients. The price levels are the same as those of the normal EA. Alternatively, the customer can sign a purely enterprise online service contract with Microsoft.
This option does not require company-wide standardization. Customers must acquire at least 500 Enterprise online service licenses.