1. Take Control of Microsoft Licensing and Optimize Spend
Review and assess your Microsoft contract to build a strategy that leads to dollars saved.
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2. ANALYST PERSPECTIVE
Your renewal is here. Are you ready to negotiate your next agreement?
Understanding Microsoft’s licensing can be like learning a new language and, to add a twist, the rules of the language change from year to year.
The push to the cloud has added another layer of complexity as the traditional on-premises IT services now have to build their strategy for the inevitable move.
This emphasizes the need for a documented licensing strategy to position the organization for success and negotiate with vendors from a positon of strength.
Scott Bickley,
Senior Research Director, Vendor Advisor Info-Tech Research Group

3. Our understanding of the problem
IT managers scoping their Microsoft licensing requirements and compliance position.
CIOs and IT directors negotiating licensing agreements and looking to save money.
Software asset managers looking for a better way to track and manage Microsoft licensing.
IT and business leaders seeking to better understand Microsoft licensing and evaluate cloud options.
Understand and simplify licensing per product to help optimize spend.
Ensure agreement type is aligned to needs.
Navigate the purchase process to negotiate from a positon of strength.
Manage licenses more effectively to avoid audits and unnecessary purchases.
Understand the future of the cloud in your Microsoft licensing roadmap.
CFOs and the finance department.
Vendor management.
Organizations examining a move to the cloud.
Have a standardized cost per employee and ease budgeting for following years.
Compare and select a licensing reseller.
Understand Microsoft’s on-premises licensing and whether moving to the cloud is a viable option.

4. Executive summary
Focus on needs first. Conduct a thorough needs assessment and document the results. Well- documented needs will be your best asset in navigating Microsoft licensing and negotiating your agreement.
Establish licensing surpluses and deficits early on. You may already have enough licensing for your new projects or you may have a substantial shortfall that needs to be addressed. Fill in existing gaps before adding new licenses.
Assign a dedicated license and software administrator. With someone to keep tabs on the licensing, review, and purchases, planning becomes easier, reducing time and money spent on requirements gathering and budget.
Microsoft licensing is often one of the top five expense items in enterprise software budgets.
Many organizations are unfamiliar with licensing terms, relying on a reseller to provide direction, and end up over-purchasing.
In a survey by Cherwell, with 178 respondents from organizations of various sizes stated, 67% had been audited by Microsoft in 2013.
Software can be licensed, purchased, and deployed in a variety of ways and it’s difficult to know which way is best.
Licensing models can change annually and product updates are released on a three-year cycle, making it difficult to keep an up-to-date understanding of the best way to be licensed.
Having a reactive strategy to the cloud makes it difficult to build a licensing roadmap and negotiate from a position of strength.
Adopt a quarterly approach to reviewing Microsoft licensing.
Define business requirements and actively manage licenses.
Have a reference and strategy document to track your software needs, understand why past decisions were made, and plan for the future.

5. Align the licensing strategy to the organizational roadmap
CASE STUDY
Industry
Location
Finance
United States
PQR Corporation
PQR, a financial services firm based in the United States, had over 2,000 employees and an Enterprise Agreement with Microsoft. The agreement had been renewed twice as is, under the assumption that because it was aligned to the organization previously, it must still be.
Licensing renewal
John had been appointed CIO and shortly thereafter received an stating PQR’s contract renewal occurred in six months. Unsure of where to begin, and due to unfamiliarity with licensing, John reached out for help in optimizing his contract.
Results
$500,000 in cost savings were realized. Software Assurance (SA) on Office was dropped as neither the upgrade rights nor the Roaming Use Rights were used. Endpoints still had Office installed and the organization had rights to Office The upgrade cycle was 5–6 years, with the plan was to move to Office in a few months. SA on Windows OS was dropped as well, as an OEM license was all the organization needed. MSDN Ultimate licenses were also being purchased where Professional functionality was being used.
John decided to enter a component enterprise agreement and make the rest of his purchases from a Microsoft Products and Service Agreement (formerly Select) without Software Assurance.
MS licensing?
Which MS agreement?
Am I compliant?
Licensing in virtual environments?
Licensing on-premises or in the cloud?

6. Use these icons to help direct you as you navigate this research
Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.
This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.
This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

7. Info-Tech offers various levels of support to best suit your needs
Guided Implementation
“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”
DIY Toolkit
“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”
Workshop
“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”
Consulting
“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”
Diagnostics and consistent frameworks used throughout all four options

8. Take Control of Microsoft Licensing – project overview
Establish Licensing Requirements
Evaluate Licensing Options
Evaluate Agreement Options
Purchase and Manage Licenses
Best-Practice Toolkit
Assess current state and align goals; review business feedback.
Interview key stakeholders to define business objectives and drivers.
Review licensing options.
Review licensing rules.
Determine the ideal contract type.
Review final contract.
Discuss negotiation points.
Determine license management needs.
Build future licensing strategy.
Guided Implementations
Perform a scoping call.
Assess the current state.
Determine licensing position.
Review product options.
Review contract option types.
Review vendors.
Finalize the contract.
Determine negotiation points.
Discuss license management.
Evaluate and develop a roadmap for future licensing.
Onsite Workshop
Module 1:
Establish Licensing Requirements
Module 2:
Evaluate Licensing Options
Module 3:
Evaluate Agreement Options
Module 4:
Purchase and Manage Licenses
Phase 1 Results:
Have a baseline for requirements
Phase 2 Results:
Product mix
Software Assurance
Phase 3 Results:
Best agreement types
Phase 4 Results:
Optimized purchasing
Management plan
Future roadmap

9. Workshop agenda Day 1 Day 2 Day 3 Day 4 Day 5 Preparation
1.1 Send workshop agenda to all participants.
1.2 Review licensing documents and any proposals provided by Microsoft vendors.
1.3 Review Microsoft deployment information.
1.4 Assess current state; perform gap analysis.
Workshop Day
2.1 Introduction to frameworks and workshop.
2.2 Assess current state and align goals to workshop; review business feedback.
2.3 Meet with stakeholders to determine IT strategy as it relates to Microsoft licensing.
2.4 Meet with “asset manager” to discuss compliance concerns.
3.1 Meet with server product owners to determine product strategies.
3.2 Discuss licensing rules and application to current environment.
3.3 Understand the importance of documenting changes.
3.4 Meet with desktop product owners to determine product strategies.
4.1 Discuss recommendations and overall contract strategy.
4.2 Discuss negotiation strategies.
4.3 Licensing management.
4.4 Introduction of software asset management (SAM).
4.5 Leverage the work done on Microsoft licensing to get started on SAM.
Workshop Debrief
5.1 Preparation of final deliverables.
5.2 Create a schedule and role/responsibility matrix for future monitoring activities.
Activities
Effective Licensing Position Template
Purchase Reference Guide
Note: This day can be provided offsite if preferred, after the Microsoft contract has been signed.
Microsoft Strategy Document
Deliverables

10. The avenues of value behind a Microsoft licensing review
Info-Tech’s Microsoft licensing advisory service provides help in reviewing licensing for on-premises product pools and cloud-based options, examining the potential for cost savings, and obtaining an unbiased third-party perspective.
Aspects Examined
Licensing
Comparing a complex “licensing rulebook” against VAR proposals to determine the best type and quantity of licenses.
Specs and Features
Comparing needs against proposed hardware specs and software feature set to validate solution design to meet needs without over-purchasing.
Terms of Service
Comparing requirements against proposed service plans and details to identify gaps and suggest opportunities peers may be using.
Cost per Unit
Comparing VAR proposals against peer pricing to identify item-level negotiation opportunities.
Discount Levels
Comparing VAR proposal discount levels (institutional, program, or channel discounts) against reseller program information and peer experiences.

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