Concluding a software contract: what you should pay attention to!

Concluding a software contract or extending a software contract with Microsoft such as an Enterprise Agreement (EA) can entail high costs. This of course also applies to software vendors such as IBM, SAP, Oracle and low code manufacturers such as Outsystems and Mendix. Many companies and organizations do not prepare sufficiently, which can lead to a poor negotiating position. Are you curious about the best way to conclude a software contract or what you should pay attention to? 

Many customers receive an offer from their supplier or from the software vendor itself when they conclude a software contract. In many cases the customer thinks this is a good proposal, but in some cases the customer seeks a second opinion. Doubts arise as to whether the advice or proposal is appropriate for the customer’s current and future situation. 

Concluding a software contract: Independent advice about your Microsoft software 

The business operations of software vendors and account managers are aimed at generating a lot of turnover and getting customers to switch to working in the Cloud. This process is often associated with price and licensing changes, licensing audits and new, more complex rules and contracts. We understand that you do not want to simply conclude this, because are all products within the contract really necessary? Vendors are all too happy to sell products that fit their own roadmap, without taking a good look at your roadmap. 

Customers should ask themselves the following questions: 

• Are all products within the contract necessary? 
• Is our organization capable of making all new products available within 2 to 3 years? 
• Have the personas within our organization been carefully examined? 
• Are we prepared to pay these high costs from the proposal? 
• How do I ensure cost reduction in this contract? Are there alternatives? 

Q-Advise’s licensing experts and consultants are happy to help you with a second opinion or alternative advice about your software purchase or contract negotiation. We are happy to provide you with useful tips to positively influence negotiations with software giants such as Microsoft and how you can best conclude your contract with the appropriate licenses. 

Critical look at your current IT processes 

When concluding a Microsoft contract or other software contact, it is important to first map out the current situation. Organizations must have control over their current licensing position. We help to visualize and analyze the current situation and future needs. 

You can then look at what optimization options are available. From this basis we build a series of interesting licensing scenarios that fit perfectly with the customer’s roadmap. This means that we look at which products the customer will use in the coming contract years. 

Customers can benefit from product innovations, but at their own pace, and within the customer’s budget and ambitions. 

Too large Microsoft contract 

We often see that Microsoft and its partners offer Office365 E3, E5 or even M365 E3 or E5. Organizations can certainly enable many questions from the business and switch quickly with a number of workloads, such as MFA, Encrypted mail, Sharepoint, etc., but are all customers ready to take this step? 

Mainly driven by turnover at Microsoft and commissions from resellers and LSPs, too extensive a Microsoft subscription is often purchased. In many cases, some Office 365/Microsoft 365 E3 vs E5 subscriptions are not necessary. And if the customer does take this step, there are also major savings opportunities here. 

Redesign license agreement for Microsoft software 

You can save on costs by choosing a different license form. It is often cost-efficient to organize and/or purchase some products differently. This way, full use can be made of innovation, but costs remain under control. The licensing experts and consultants at Q-Advise are happy to think along with you by organizing things differently. This means that it will still be possible to enable more features in the future so that you can continue to grow, but the costs remain a lot lower. 

Investing savings in the organization 

For example, savings on your software can be invested in user adoption training, resulting in even more value being extracted from the contract. This way, maximum results can be achieved within your organization that are tailored to business needs. 

Licensing structures from Microsoft, IBM, SAP, Oracle and low code manufacturers such as Outsystems and Mendix require a lot of expertise. It is essential to have good advice and support so that you make the investment properly and make optimal use of it. 

Are you curious whether your organization can also save money on software contracts?