How to Negotiate Microsoft EA Discounts and Concessions
Microsoft Enterprise Agreements (EAs) offer volume discounts, but savvy negotiation can push savings further.
This article explains EA discount bands and outlines how to leverage deal size, timing, and Microsoft’s sales incentives to secure deeper discounts and valuable contract concessions.
CIOs, procurement leaders, and IT negotiators will learn tactics to maximize value and ensure they aren’t wasting money.
Read how to negotiate your Microsoft EA.
EA Discount Bands
Microsoft’s EA has built-in volume pricing levels. The larger the number of licenses/users you commit to, the deeper the base discount off the list price. There are four standard volume bands:
| EA Level | Approx. Seat Count | Typical Base Discount |
|---|---|---|
| Level A | 500 – 2,399 | ~10% off list |
| Level B | 2,400 – 5,999 | ~15–25% off list |
| Level C | 6,000 – 14,999 | ~30–40% off list |
| Level D | 15,000+ | ~40–50% off list |
These ranges vary by product, but the trend is clear: moving to a higher tier brings a bigger automatic discount. However, Microsoft has reduced some programmatic discounts (especially for Level A), so smaller EA customers might see only modest base discounts and must negotiate aggressively.
If you’re near a tier cutoff, try to move up a band – for example, slightly increasing your license count to reach Level C could instantly improve pricing across the board.
Volume bands set your starting point, but the real savings come from how you negotiate on top of them.
Read Exiting Microsoft EA: Strategy, Licensing Impact, and Transition Paths.
Timing the Negotiation (Sales Incentives)
Timing can dramatically influence your outcome. Microsoft’s fiscal year ends on June 30, and sales teams are under pressure in the final quarter to hit targets. That’s often when you’ll see the most generous deals. ‘
If your EA renewal or purchase can be scheduled toward Microsoft’s Q4 (Apr–Jun), you gain leverage – reps are far more willing to concede discounts or add perks to book the deal before year-end.
End-of-quarter pressure points (September, December, March) are also useful, though year-end is king. The key is to manage your cycle: start negotiations early, but try to finalize close to quarter-end to maximize Microsoft’s urgency (without missing your own deadlines).
Microsoft’s incentives also depend on what you buy. The company often runs promotions on strategic products, such as new cloud or security offerings that Microsoft is keen to grow. You can likely get extra discounts or credits if your deal includes these focus products.
Align your requests with Microsoft’s priorities: for instance, if you’re considering a new product Microsoft wants to promote, mention that. They may respond with a better overall deal or even funding for deployment to encourage you.
Read Microsoft True-Up Process: What It Is and How to Manage It Effectively.
Securing Concessions Beyond Price
Price isn’t the only negotiable. Consider pushing for other concessions that add value or reduce risk:
- Price protections: Try to cap future price increases or secure an extended price lock. (For example, negotiate a limit on EA renewal price hikes or lock certain rates for a fourth year.)
- Payment terms: Request more favorable billing. This could mean annual (rather than upfront) payments, or deferring a portion of fees to align with your fiscal cycle.
- Free services/credits: Ask for extras like training credits, consulting days, or enhanced support at no charge. Microsoft can often include these perks to add value without affecting the discount percentage.
- Flexible terms: Push for contractual terms that give you wiggle room, such as the ability to reduce user counts for subscriptions at renewal or an opt-out clause for a new service if it isn’t adopted company-wide.
Microsoft might be more willing to concede to these non-cash items than to lower prices further. Once you’ve reached the limit on pure discount, shift the conversation to these concessions.
Recommendations
- Do your homework and emphasize your value: Know which discount band you fall in and what discounts you should aim for. Use data from similar deals as a benchmark, and make sure Microsoft understands the full value of your account (users, products, growth plans).
- Time negotiations for seller urgency: Whenever possible, align deal closure with Microsoft’s end-of-quarter or year. Sellers are far more flexible when they have quotas looming.
- Have a Plan B: Prepare alternatives or the option to downsize. Let Microsoft sense (subtly) that you have other choices if the deal isn’t right, it motivates them to offer more.
- Bundle and commit wisely: If you can consolidate purchases or are willing to adopt more Microsoft products, use that as leverage. Only commit to more if you get commensurate discounts or perks in return.
- Negotiate extras, not just price: Once you’ve exhausted the discount, turn to concessions—ask for better terms, support, or credits that add value to your EA.
FAQ
Q1: What’s the biggest mistake enterprises make when negotiating an EA?
A: Not negotiating hard enough, for example, accepting the first offer instead of pushing back for better terms.
Q2: How much of a discount can we get on a Microsoft EA?
A: Many companies secure 20–30% off (larger customers often more). It depends on your volume and leverage.
Q3: Does Microsoft give bigger discounts at the end of the quarter or the year?
A: Yes. Microsoft tends to be more generous as its quarter-end or fiscal year-end approaches because reps are eager to hit targets.
Q4: What are effective leverage tactics we can use?
A: Use alternatives as bargaining leverage, align your negotiation with Microsoft’s sales deadlines, combine your purchases into one large deal, and be willing to expand your order only if your price targets are met.
Q5: Our company is just at the 500-user EA minimum. Can we still negotiate a discount?
A: Yes. Even a 500-seat organization can ask for discounts or perks. You may offer a longer commitment or adoption of new Microsoft products in exchange for a price break.
Q6: What concessions beyond price should we ask for?
A: Negotiate for price caps on renewals, the flexibility to drop unused subscriptions at renewal, friendlier payment terms, and free training or support services.
Q7: How do we get Microsoft to view us as a strategic customer?
A: Show them your growth plans and upcoming projects involving Microsoft technologies. The more future business they see, the more important your account becomes to them.
Q8: Should we use a third-party advisor or benchmarking service?
A: It can help. Advisors have insight into typical discounts and can guide your strategy. Use their data to set strong negotiation targets.
Q9: Can we renegotiate our EA mid-term if our needs change?
A: Not usually. EA pricing is locked in once signed, and significant changes in terms generally have to wait until the renewal.
Q10: What if Microsoft’s offer is still too high for us?
A: Be prepared to walk away or pause negotiations. If Microsoft knows you might not sign, they often return with a better offer rather than lose the deal.
Read about our Microsoft Negotiation Services.
