Unlocking Savings: How to Optimize Your Microsoft Agreement
Everyone is aware that the market has shifted. While traditional issues with non-compliance may have decreased, there are new challenges, such as controlling costs and avoiding overspending. Nevertheless, there are still just a hand full of companies taking this opportunity.
On average, organizations are overspending 32% on Cloud Subscriptions. It’s not surprising, considering that software vendors have made it quite complex. Acquiring a Cloud Subscription is relatively simple, but there are multiple ways to Rome. Which one is the most optimal? That’s why it’s essential to review your software license agreement to determine where the optimization and savings lie for you.
Despite recognizing the importance of optimization, many organizations lack the time, expertise, or appropriate tools to address it effectively. Additionally, competing priorities and KPIs often divert attention away from cost-saving initiatives. A developer is there to build cool technology that brings a unique selling proposition (USP) for the company. The size of the VM or the availability of more cost-effective licensing options is less relevant. The SAM department is running another audit, and procurement is busy negotiating 500+ contracts. Oh, and there is one key decision-making unit (DMU) – FinOps, but most companies still lack this kind of stakeholder, or finding someone with the right skillset is challenging.
Commonly, we encounter resistance from organizations claiming to have already optimized their estate. However, when we then get the opportunity to conduct a health check, we often find savings in the range of 10 to 56%. his begs the question: why the initial reluctance? Is it due to time constraints, fear of the unknown, or skepticism about our intentions? The answer remains unclear, but our commitment to sharing licensing expertise and facilitating cost savings remains.
If the savings are only around 10%, it may not be worthwhile to embark on a whole project. And that’s okay! It means you’ve done a good job. The only thing I can emphasize is that we are passionate about licensing and eager to share our knowledge so that you can save money while we enjoy the journey together.
There are tons of optimization possibilities out there, and every situation is different. This complexity makes the game challenging. The phrase “you need to have a degree in Microsoft Licensing” exists for a reason. What are the high-level topics to consider?
- Creative ways to license the same environment. For example, SQL private cloud or SQL Azure benefit where you receive four for the price of two cores. Or don’t take you subscriptions as SaaS but bring them from your own contract.
- Commercial Optimization: do you have the most cost-effective contract in-place for your situation or geographical location?
- Subscriptions are not fully utilized / Didn’t define different personas in the organization. There are more cost-effective licensing scenario’s, such as E3, E1, F3, and F1. But what about my security features. There is a Security F plan. The total sum could save you € 600, – per user, per year. That’s 600k on 1.000 users.
- Exceptions (e.g. subscriptions per device) and hidden price SKUs.
- Benchmark data to find your most cost-effective route.
- and many more…
Don’t let the complexity overwhelm you. Whether due to a lack of expertise or time constraints, assistance is available. We’re committed to helping you navigate and unlock substantial savings along the way.
Remember, the game of optimization is ongoing. Embrace the challenge, and if you need support, we’re here for you. Let’s optimize your Microsoft agreement together!
