Everything about Microsoft Products and Services Agreement (MPSA); Cloud, on-premises renewal, discounts
Microsoft Products and Services Agreement (MPSA) program is intended for medium to large commercial enterprises and governments with decentralized decision-making or who are willing to report monthly and require licenses with or without Software Assurance and/or Online Services.
As of July 1, 2016, Microsoft Select Plus was replaced by MPSA. As of that date, corporate customers were no longer able to place new orders and renew Software Assurance through their Select Plus Agreement.
For government and academic customers, this change is not yet applicable in the short term. However, it is also worth considering switching to the MPSA program.
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Cloud Subscription purchase under the MPSA
As of March 1, 2016, a number of cloud subscriptions can be purchased for a short period of 1 to 11 months. Until now, these subscriptions could only be purchased for one year. With this, Microsoft meets the requirements of many organizations to temporarily provide temporary staff with cloud products.
A solution for companies with a high dependence on seasonal influences or projects. The change affects Office 365 E1, SharePoint Online Plan 1 and Plan 2, Exchange Online Kiosk, Plan 1 and Plan 2, Office 365 K1, Enterprise Mobility Suite (EMS) and CRM Online increased capacity Add-ons.
What type of products are offered under the MPSA?
Almost all business Microsoft license products are available in the MPSA program.
Price & discount levels in the MPSA and the purchase order
An MPSA contract is concluded on the basis of a forecast and is transaction-based, which means that for additional installations, you must place a purchase order again to purchase the additional licenses. Investments can optionally be spread if Software Assurance is purchased.
MPSA has four price levels, which are set separately for each product group. In general, the more points you purchase, the lower the price level.
The applicable price level is determined for each separate product group in an MPSA agreement. The number of points purchased annually is important in determining the price level:
Price and discount level, minimum purchase of the number of units per group per year;
- Level A: 500 – 3,999 Points
- Level B: 4,000 – 9,999 points
- Level C: 10,000 – 24,999 points
- Level D: 25,000+ Points
The price level for governments is always level D. Some other sectors can also have Level D. This is not standard but negotiated.
Product groups in the MPSA agreement
MPSA agreement has the following three product groups:
- Application Pool (Office Pro, Project, Visio, etc.);
- System Pool (Windows OS o/ Enterprise (upgrade));
- Server Pool (Exchange Server, System Center Server, Windows Data center Server, etc.).
Reorder in MPSA and when to do it
Reorders must be placed in the month of commissioning. For example, if one has a Level A agreement for the Application Pool, One separate Office license can be purchased against these conditions. Reorders can be placed as long as the agreement is active. If you order a minimum of 500 points per year, the agreement remains active.
Purchase obligation and what is required from a customer on MPSA
Microsoft will compare your points per order with the price level for each product group. With each analysis, Microsoft will adjust the price scale if applicable. Points that exceed the current scale limit are carried over to the next contract year.
These points count towards the points achieved in the new year and this total determines the price level for the following year. If you do not achieve the minimum purchase of the relevant graduated scale within one year, it will be moved back one graduated scale the following year. If you have price level A and you do not order 500 points, the relevant pool will be set to inactive. If you then place an order for at least 500 points, the pool will be reactivated.
What update Rights are available in MPSA?
Through Software Assurance (SA), services are automatically updated to the latest version.
Software Assurance as part of MPSA
Software Assurance (SA) can be purchased on the licenses, which entitles you to use the most recent version.
It is a set of benefits that Includes updates, services and rights which can give you flexibility in how they deploy the MPSA agreement.
Software Assurance is purchased at the same time as you purchase the MPSA agreement, and after Software Assurance payments have been maintained throughout the agreement, the SA may be renewed without the need to purchase a license again.
Contemplating on getting the Microsoft Products and Services Agreement (MPSA) for your organization and figuring out how best you can optimize your investment? We know how to assist you.
Are you an existing MPSA customer and want to know how your current agreement can be re-tailored for a less impact on your finances? Send us an email.