With Microsoft, you must get the right type of licensing for your organization to optimize utilization and cost. You also need to understand the terms and conditions of each type.
What Is Microsoft Volume Licensing?
Microsoft volume licensing lets you acquire software in bulk to use on multiple computers within your organization. You do not need to buy separate software or documentation for each installation. This can reduce the cost significantly versus buying individual licenses.
What Are the Benefits of Using Microsoft Volume Licensing?
Microsoft volume licensing simplifies the process of allocating software, provides deeper levels of assurance and support, and reduces costs.
Ease of Use
Managing your software through Microsoft volume licensing is easier for administrators. For example, you only need to keep track of one software key rather than keys for each piece of software. You can also manage user permissions and activate Software Assurance through the Volume Licensing Service Center (VLSC) — part of the Microsoft 365 Admin Center, allowing you to manage on-prem software, online services, and subscriptions with a single login ID on one site.
Software Assurance & Training
With volume licensing, you can also get Software Assurance from Microsoft. This is comprehensive maintenance and support to help you optimize your investment. It includes the latest software and phone support, IT tools, and training along with:
- Fail-over rights
- License mobility
- Roaming use rights
- Disaster recovery
- Step-up license availability
Affordability
Besides reducing overall costs, you also have more flexibility in your software licensing. For example, you can choose the number of devices, length of agreement, payment methods, and which optional add-ons you need for your organization. You can get exactly what you want without having to pay for options you will not use.
Which License is Right for Your Business?
Which Microsoft license is right for your business will depend on the number of users and devices you have.
Enterprise Agreement
The Enterprise Agreement provides the best pricing, discounts, and benefits for either server or cloud services. This enables organizations to minimize upfront costs and lock in prices over multiple years.
This level is designed for organizations that have at least 500 devices. While pricing is locked in for three years (or longer), you can also adjust products or services over time and increase or decrease subscriptions annually. As you add or delete products or services, you pay for any differences at an annual true-up.
Typically, an Enterprise Agreement reduces costs from 15% to 45%, depending on the size of your organization.
Open Value Program
For mid-size companies, the Open Value program also provides bulk licensing, Software Assurance, upgrades, and training. While the Open Value program only requires the purchase of at least five software licenses — making it an option for smaller companies — it is an option for mid-size companies with up to 500 licenses or devices.
Microsoft Products and Services Agreement (MSPA)
The Microsoft Products and Services Agreement (MSPA) is a transactional licensing agreement ideal for organizations with 250+ users/devices that want flexibility in licensing Microsoft products. Licensing is done under a single agreement with no organization-wide commitment required. Software Assurance is optional.
Microsoft Select Plus
Microsoft has phased out its Select Plus program for commercial agreements. However, it is still available for volume licensing for public sector organizations.
Enterprise Agreement Enrollments
When evaluating licensing, you will want to model different scenarios to understand the financial implications. It helps to work with a company like NPI that benchmarks deals across organizations to ensure you are getting the best possible pricing and terms.
Server and Cloud Enrollment
The Server and Cloud Enrollment (SCE) is an enrollment under the Microsoft Enterprise Agreement that allows highly committed customers to standardize broadly on one or more of the four server and cloud technologies from Microsoft: Core Infrastructure, Application Platform, Developer Platform and Microsoft Azure. In exchange for making an installed base-wide commitment to an SCE component, you receive a range of benefits, including new cloud-optimized licensing options, simplified license management, and the best pricing and terms.
Why Regular License Optimization is Critical for Managing Microsoft Volume Licensing Costs
Companies regularly overpay for software licenses. They either wind up purchasing the wrong type of license, make costly errors in accounting and managing licenses that lead to audits or simply overpay. For example, NPI worked with one company on a Microsoft EA renewal totaling $51 million. With the right data and negotiation intel, NPI was able to save the company $11 million.
If you continue to renew the same licensing deal year after year, it’s time for a fresh look. Deconstructing your organization based on job function and the needs of users can produce significant savings. Getting the right licensing that matches your unique requirements can reduce costs in some cases by up to 70% by carving out users who don’t need enterprise products beyond core licensing.
There is also a wealth of information including in Microsoft Licensing Statements (MLS), but you will benefit from an independent assessment. It’s a crucial document and interpreting and applying the information contained can also help you optimize costs.
How NPI Can Help Optimize Cost and Compliance for Microsoft Volume Licensing Customers
Microsoft licensing is a big investment and it’s easy to overspend. Over the next year, companies will overpay for about 85% of their IT purchases. NPI can help you avoid such expenses with unparalleled knowledge and insights into licensing trends to achieve best-in-class purchasing:
- Validate: Provide an objective assessment of your pricing to close any gaps
- Optimize: Define the licensing, subscriptions, and terms that fit your company best
- Negotiate: Provide vendor-specific intelligence and benchmarking to leverage better deals
- Align: Get your IT team working on the same page, toward a defined target goal
Contact NPI today to discuss your Microsoft volume licensing needs and start saving money.
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