Taking out a software contract: what you should pay attention to!

Taking out 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 complete a software contract or what to look out for?  

Many customers receive an offer from their supplier or from the software vendor itself when they complete 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 current and future situation of the client.  

Taking out 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 license changes, license audits and new, more complex rules and contracts. We understand that you do not want to just conclude this, because are all products within the contract really necessary? Vendors are all too happy to sell cloud products that fit their own roadmap, without looking closely at your roadmap.  

Customers should ask themselves the following questions: 

• Are all products required within the contract?  
• Is our organization able to make all new products available within 2 to 3 years?  
• Have we properly looked at the personas within our organization?  
• Are we prepared to pay these high costs from the proposal?  
• How do I ensure cost reduction in this contract? Are there alternatives?  

The licensing experts at Q-Advise 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 and unbiased tips to positively influence negotiations with software giants such as Microsoft and how you can best complete your contract with the appropriate licenses and Cloud services. 

A critical look at your current IT processes  

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

Subsequently, the optimization possibilities can be examined. On 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 innovations in the products, but at their own pace, and in line with the their budget and ambitions.  

Too large Microsoft contract that may not be fit for purpose  

We often see Microsoft and its partners offering Office 365 E3, E5 or even M365 E3 or E5. Organizations can certainly answer a lot of 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 the resellers and LSPs, a too extensive Microsoft subscription is often purchased. In many cases, some Office 365/Microsoft 365 E3 vs E5 subscriptions are not necessary and if the customer still takes this step, there are also great savings opportunities here.  

Reconfiguring a license agreement for Microsoft software  

You can save on costs by choosing a different license form. It is more often cost-effective to arrange and/or purchase some products differently. In this way, full use can be made of innovation while keeping costs under control.   

Q-Advise licensing experts and consultants are happy to think along with you by arranging things differently. In this way it will remain possible to enable more features in the future so that you can continue to grow, but the costs will remain a lot lower.  

Invest savings in the organization  

For example, savings on your software can be invested in user adoption training, extracting even more value from the contract. This way you can achieve maximum results 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 great deal of expertise. It is essential to have good advice and support so that you make the right investment and make optimal use of it.  

Are you curious whether your organization can also save money on software contracts? Reach out to our team of experienced negotiators and software licensing experts now!