Microsoft EA Renewal for Wella
In the ever-evolving landscape of software licensing, organizations face numerous challenges in ensuring compliance, optimizing usage, and deriving maximum value from their investments. This case study illustrates the consulting & optimization work performed by 2Data for Wella and the results achieved in the context of the M365 Optimization Project and Microsoft Enterprise Agreement (EA) Renewal.
Wella, with its rich heritage and global footprint, relies heavily on sophisticated software solutions to drive its business operations. As part of their digital transformation strategy, Wella utilizes Microsoft’s suite of products and services to enhance productivity, collaboration, and innovation. However, managing software licenses, especially with a company of Wella’s scale and Microsoft cloud adoption for Azure and M365, present complex challenges in terms of compliance, usage and cost management.
The Challenge.
Wella encountered several challenges leading up to their Microsoft EA renewal:
- M365 usage analysis to ensure over licensing was managed along with the correct profiles and alignment.
- Complex Licensing Environment: With a diverse portfolio of Microsoft products, including Office 365, Azure, and Dynamics 365, Wella needed an in-depth understanding of their licensing requirements and entitlements.
- Cost Optimization: Microsoft price increases over the last 3 years have resulted in higher annual spend. Ensuring cost-efficiency while maintaining compliance was a major concern. Wella sought to avoid over-provisioning or under-utilization of licenses and to have the right license map for its various user profiles and workloads.
- Strategic Alignment: Aligning their licensing agreements with broader business goals and future growth plans was crucial for Wella’s digital transformation journey.
The Solution.
2Data, renowned for its expertise in license consulting and contract negotiation support, adopted a holistic and meticulous approach to address Wella’s needs. The key steps included a current and future estate assessment, cost modeling and development of a licensing strategy that helps support the discussion with Microsoft.
2Data provided expert guidance and support throughout the negotiation process with Microsoft. Their deep understanding of Microsoft’s licensing terms & conditions and Microsoft internal commercial processes enabled Wella to secure favorable terms and conditions for their EA renewal. 2Data’s involvement ensured that Wella’s interests were well-represented, leading to a mutually beneficial agreement.
The Outcome.
The collaborative efforts of 2Data and Wella resulted in several significant achievements, namely:
Cost Savings circa $3m over Contract Term By optimizing license allocation and negotiating favorable terms, Wella realized substantial cost savings on their Microsoft EA renewal. The cost-benefit analysis conducted by 2Data identified potential areas of overspend, resulting in smarter investments and reduced expenditure.
Price Mitigation & Negotiated Terms A solid negotiation strategy yielded a 3-year contract with Microsoft with favorable terms which benchmark well with leading market data.
Conclusion
The partnership between 2Data and Wella exemplifies the transformative impact of expert license consulting. Through meticulous analysis, strategic planning, and effective negotiation, 2Data helped Wella navigate the complexities of Microsoft licensing, achieving outstanding results in their EA renewal.
