Microsoft EA Renewal FAQ: Your 2025 Questions Answered
Renewing a Microsoft Enterprise Agreement (EA) in 2025 can feel overwhelming. Many CIOs, CFOs, and IT leaders have similar questions about how to handle an EA renewal under today’s rules and market conditions.
This 2025 EA renewal FAQ guide compiles the most common Microsoft EA renewal questions and provides clear, practical answers.
Each Q&A is designed to provide you with plain-English guidance on your options, risks, and negotiation strategies so that you can approach your EA renewal with confidence and control costs.
For a complete overview, read our guide to Microsoft EA renewals.
Can We Extend Our EA for 6 Months Instead of Renewing Now?
It’s one of the EA renewal common questions for 2025: whether you can delay a full renewal by extending the current agreement.
Microsoft may allow a short extension of an EA, but usually only for a brief period (often 1–3 months) to finalize a renewal.
A 6-month extension is less common – it might be granted in special cases (for example, aligning the EA end-date to your fiscal year or awaiting a major internal decision).
Always communicate with Microsoft well in advance of your EA expiration if you need extra time.
Key points and trade-offs to consider:
- Short Extension Options: Microsoft’s standard practice is to offer a short-term extension or grace period if you’re close to a new deal. This is often done via a simple agreement or even an email confirmation. Longer extensions (such as 6 months) may require more formal approval or even a one-year “bridge” agreement.
- When It’s Allowed: Extensions are typically given when you’ve signaled intent to renew but need more time for internal approvals or negotiations. Microsoft will be more flexible if they believe a renewal is likely – they want to avoid a lapse in your coverage as much as you do.
- Negotiation Trade-Offs: While an extension buys you time, it might come with downsides. If Microsoft has price increases slated or new licensing rules, a delayed renewal could expose you to those changes. Additionally, prolonging the process may reduce the urgency on Microsoft’s side to offer discounts now. Use any extension period wisely – continue negotiating and don’t lose momentum. Ensure that any extension is properly documented to maintain compliance during the gap.
In summary, you can request a short EA extension and sometimes get up to a few months. Just have a clear reason and plan. It’s usually better to renew (and renegotiate terms) as soon as you’re ready, since simply extending an EA without renegotiating rarely yields cost benefits. Use an extension only as a tactical pause to secure a better renewal deal, not as a long-term solution.
Learn about Microsoft EA Renewal Escalation Strategies.
What Happens If Our User Count Drops Mid-Term?
A mid-term drop in employee or device count is a common scenario that raises concerns in an EA.
In a standard Microsoft EA (with perpetual licenses + Software Assurance), you cannot reduce your license count mid-term – you’re locked into the quantities you initially committed for the full three-year term. This means if you downsized or have 500 fewer users, you generally still pay for the originally contracted number of licenses until the EA term ends.
Here’s how to manage a usage drop:
- No “True-Down” in EA: With a traditional EA, there’s no built-in mechanism to decrease license counts during the term. You can only adjust and true-down at the renewal (i.e. when signing a new EA term). So mid-term unused licenses become “shelfware” – paid for but not in use.
- Enterprise Subscription (EAS) Flexibility: If you had an Enterprise Agreement Subscription (EAS) instead of a standard EA, you would have more flexibility. The EAS program allows annual reductions in licenses. Typically, at each anniversary, you can drop the quantity of subscription licenses (often up to a certain percentage or down to your current user count). This is a key difference between EA and EAS renewals – EAS trades ownership for flexibility to scale down.
- Mitigation Strategies Mid-Term: If you’re locked in an EA and your headcount drops, focus on maximizing the value of the licenses you have. Can those spare licenses be reassigned to other users or repurposed for new projects? Ensure you’re utilizing all available entitlements (for example, utilizing extra Office 365 licenses for contractors or partners if permitted). It’s also wise to inform Microsoft of major organizational changes; in rare cases (like a company divestiture or merger), they might work with you on a solution, but this is the exception, not the norm.
- Plan for Next Renewal: Use the experience as a lesson for your next renewal strategy. If fluctuating user count is likely, consider switching to an EAS or even moving some licenses to a more flexible model (like CSP) at renewal. At the very least, be ready to true-down at renewal – meaning only renew for the lower number of licenses you need going forward.
In short, a mid-term drop won’t lower your costs during an active EA term. You’ll carry any excess licenses (and their costs) until the end of the agreement. The best you can do is optimize usage of those licenses now and adjust at the next renewal. In the future, if volatility in user counts is anticipated, structure your licensing to allow for greater flexibility.
How Do True-Ups Work at Renewal?
True-ups are the annual mechanism in an EA to account for any increases in usage. If you added users or deployed more licenses during the year, you report and pay for those additions at the anniversary.
When it comes to the end of your EA term (renewal time), the true-up process plays a final critical role in closing out the old contract and setting the stage for the new one.
Here’s how true-ups factor in at renewal:
- Final Year Reconciliation: As you approach your EA renewal, you must perform one last true-up for any growth since your last annual true-up. For example, if you added 50 new Office 365 users in the final months of the term, you need to report those and settle up the cost. This is often done as part of the renewal order. Microsoft may let you simply add those 50 users to your renewal (new EA) and then calculate a pro-rated fee for their use during the remaining time of the old EA. This way, your final true-up is bundled with your renewal paperwork.
- Don’t Overlook Compliance: It’s vital not to forget this final true-up. If you skip it and just renew with the original counts, you’d be leaving a compliance gap (those extra 50 users in the example would be unlicensed for the prior period). Microsoft’s contract requires you to reconcile any overuse, and failing to do so could result in compliance audits or penalties. Ensure that all last-minute additions are accounted for, either via a true-up order or written into the renewal.
- Resetting the Baseline: After you’ve paid for those final additions, those licenses become part of your new baseline in the renewed EA. That means your new agreement starts with the higher count. If you don’t need those extras going forward, you have the right at renewal to drop back down (renew only what you need). Renewal is effectively signing a new contract, so it’s your chance to re-baseline. But you still had to pay for any use during the old term via the true-up.
- Leverage and Strategy: Your true-up history can be a useful negotiating tool. Suppose you consistently had to true-up a significant number of licenses each year. In that case, that indicates growth – leverage this to ask for better discounts in the new term (“we’re going to start with more licenses than last time, so give us a better price tier”). Conversely, if you rarely true-up (or even over-licensed and never used all you bought), that signals you have room to trim fat – come renewal, you can confidently cut licenses or at least push back on any attempt to raise prices. Microsoft pays attention to your consumption trends, and you should too.
In summary, true-ups at renewal mean settling any last increases and using that data to inform your negotiation.
Always perform the final true-up to stay compliant, then start your new EA with an optimized count. It’s both a clean-up exercise and a chance to ensure your renewed agreement reflects your actual needs (and gets appropriate volume discounts for any growth).
What’s the Difference Between EA and EAS (Enterprise Agreement Subscription)?
Microsoft offers two main flavors of Enterprise Agreements: the traditional EA and the Enterprise Agreement Subscription (EAS).
At a glance, they look similar – both are typically three-year agreements covering enterprise-wide use of Microsoft products. However, there are key differences in terms of conditions, ownership rights, and flexibility that can significantly impact your renewal strategy.
Enterprise Agreement (EA): Under a classic EA, you make a three-year commitment to certain product license counts. You generally own the licenses perpetually once paid for – meaning after the term, you can continue to use the software versions you licensed (though you lose Software Assurance benefits unless renewed). An EA locks in pricing for the term but does not allow for decreasing quantities mid-term (only increases are permitted via true-ups). It’s ideal for organizations that want to eventually own licenses outright and have fairly stable or growing needs. If you might not renew, an EA leaves you with perpetual usage rights as a safety net.
Enterprise Agreement Subscription (EAS): An EAS is also a three-year commitment, but all licenses are subscription-based. You’re essentially renting the software/services, so no perpetual rights – if you end the agreement, the software stops being licensed. The big advantage is flexibility: EAS allows you to true-down licenses at each anniversary.
For example, if you subscribed to 1,000 seats of a product and your workforce drops to 900, you can reduce to 900 at the next anniversary and only pay for that in the future.
EAS typically has lower yearly costs than buying licenses (since you’re not paying for perpetual ownership), which can save money if you suspect you’ll reduce usage or if you prefer an OPEX model.
Key EA vs EAS renewal differences include:
- License Ownership: EA = you keep licenses after the term (valuable if you might want to use them without renewing SA). EAS = no ownership; you must renew or stop using the software.
- Flexibility: EA = fixed minimum commitment, only upward adjustments (true-ups). EAS = the ability to adjust both upward (add subscriptions) and downward (reduce subscriptions) each year. This is crucial if you expect contractions or need the option to scale down.
- Cost Structure: EA often requires more upfront investment (or three annual payments) for perpetual licenses + SA. EAS spreads costs as pure subscription fees. EAS may offer slightly lower pricing per year because you’re not paying for lifetime rights, but over many years, an EA could be more cost-effective if you maintain the licenses long-term.
- Renewal Impact: If you plan to renew continuously, an EA and EAS function similarly in terms of maintaining your license. But if you foresee not renewing at some point (or switching programs), remember an EA leaves you with usable software, whereas an EAS leaves you with nothing deployed. Additionally, switching from EA to EAS at renewal (or vice versa) is possible and sometimes advisable: for instance, if you previously owned licenses but now require downsizing flexibility, moving to EAS at renewal provides that option.
Choosing between EA and EAS comes down to your organization’s priorities: cost certainty and ownership versus flexibility and lower short-term cost.
Many enterprises in 2025 are leaning toward subscription models for cloud services, but it is essential to weigh the trade-offs.
You can even mix elements — for example, keep some products under a perpetual EA and others under subscription SKUs. The renewal is an ideal opportunity to assess which model best suits each part of your estate.
Can We Move Part of Our Estate to CSP or MCA While Renewing EA?
Yes, you can. Many organizations take a hybrid approach to renewal, keeping an EA for core licenses and shifting certain parts of their IT estate to other licensing programs, such as CSP (Cloud Solution Provider) or the MCA (Microsoft Customer Agreement).
The key is to do this strategically, understanding the benefits and risks.
How a hybrid renewal might work:
Suppose you have an EA covering Windows, Office 365, and some Azure. At renewal, you might decide to renew the EA for Windows and Office for your 1,000 users, but move your Azure consumption out of the EA into a direct Microsoft Customer Agreement (pay-as-you-go) or buy a set of Microsoft 365 licenses for a smaller subsidiary via a CSP partner instead of through the EA. This kind of split is allowed.
Benefits of moving to CSP/MCA for part of your estate:
- Flexibility: CSP (through a partner) often offers month-to-month or annual subscriptions that can be easily scaled up or down. If you have a segment of users or a specific product where headcount fluctuates, CSP’s lack of long-term commitment can save money. Similarly, an MCA for Azure has no upfront commitment – you pay for actual usage, which might suit unpredictable cloud workloads.
- No Minimums: If your overall organization is shrinking or you have a branch that doesn’t meet EA’s size threshold, CSP is a way to keep licensing them without an enterprise-level commitment. CSP is commonly used by smaller teams or subsidiaries that the main EA doesn’t cover.
- Leverage in Negotiation: Letting Microsoft know that you’re willing to move to CSP or an MCA can pressure them to offer a better EA renewal deal. Microsoft would prefer to keep your business in an EA (since it’s a larger commitment). If they sense you might shift significant spend to CSP/MCA, they often become more flexible on EA pricing or terms to retain that workload in the EA.
Risks and trade-offs to consider:
- Discount Differences: Enterprise Agreements typically give the best volume discounts, especially for large user counts. CSP pricing is typically based on smaller-scale transactions and may be higher per license, unless your partner offers you a special deal. By moving part of your licenses to CSP, you might lose some economies of scale. For example, if you drop from 1,000 users in EA to 700, you might fall into a lower discount band on those remaining EA licenses.
- Administrative Complexity: Managing multiple licensing programs means dealing with separate portals, bills, and possibly partners. It’s doable, but ensure your team can handle the extra administration.
- Alignment and Coverage: Ensure there are no gaps or overlaps. If you move a set of users to CSP, time it so their EA licenses end when the CSP ones begin (avoiding double-paying or leaving anyone unlicensed). For Azure, coordinate the switch at month-end or quarter-end to cleanly transition from EA monetary commitment to MCA billing.
In practice, hybrid licensing is becoming more common in 2025. Companies might keep their stable, high-use products under an EA (to maximize discounts) and allocate more variable or niche needs to CSP for flexibility.
Before renewing, evaluate each part of your estate: if a certain aspect could be cheaper or easier to manage outside the EA, obtain quotes for it via CSP/MCA.
Even if you ultimately keep everything in the EA, having that comparison helps you ensure you’re getting the best value from Microsoft one way or the other.
How Do Discounts Work at Renewal?
Microsoft EA pricing and discounts can change at renewal, so it’s crucial to understand how they work and how to negotiate them. In an EA, your costs are determined by two main factors: the underlying list prices of the products and the discount level (or special pricing) you’ve negotiated.
When you renew, all bets are off unless you actively renegotiate — Microsoft will often reset pricing based on the latest list prices. It may not automatically carry over your previous discounts.
Here’s what to know about EA discounts at renewal:
- Programmatic Discount Levels: Microsoft EAs have built-in volume discount levels (A, B, C, D) based on the number of users/devices. If your organization’s size has changed, your level may also change. For instance, reaching over 2,400 users could advance you from Level A to Level B, unlocking a better baseline discount on most products. Conversely, if you downsized, you could drop a level, which reduces your discount. Check your user count against these thresholds as you approach renewal.
- List Price Updates: Over a three-year term, Microsoft often raises list prices or introduces new product bundles. At renewal, the price for each license will be recalculated on the current price list. The price protection you enjoyed during the EA term ends. That means even if you keep the same products and quantities, the starting quote might be higher due to Microsoft’s price adjustments. Be prepared: 2025 has seen some cloud service price adjustments and new add-ons, which may be reflected in the renewal pricing.
- Renegotiate Your Discounts: Treat the renewal as a new negotiation. Any extra discretionary discounts or special pricing you had last time must be re-earned now. Don’t assume Microsoft will extend your previous 20% off just to be nice – you have to ask (and often push) for it. Use your relationship and leverage: if your spend has grown, ask for a deeper discount; if you’re considering competitive options or moving to CSP, mention this to encourage a better offer. Microsoft reps have some flexibility, especially if they need your deal to meet their targets.
- Typical Discount Ranges: While every deal varies, large enterprises can often secure significant discounts (15-30% or more off certain licenses), whereas smaller ones might only receive single-digit discounts or rely on standard-level discounts. Research industry benchmarks if you can (or use a licensing consultant’s data) to know if the quote you get is reasonable. For example, if most companies of our size receive a 20% discount on Office 365 E5, we’ll push for something similar.
- Timing and Leverage: The timing of your negotiation can significantly impact the discounts you receive. Microsoft’s fiscal year end (June 30) is a period when sales teams are eager to close deals – if your renewal lines up around that, you might get a more aggressive offer, especially if you’re willing to sign before that deadline. Similarly, engaging early (12+ months out) gives you time to negotiate through multiple rounds and even escalate within Microsoft if needed to secure better terms. If you start last-minute, you lose that leverage, as Microsoft knows you have limited choices.
Bottom line: At renewal, scrutinize the pricing. Don’t just roll over your EA, assuming the cost will stay the same. Everything is negotiable – from the unit price of each product to the overall discount on the agreement.
Come prepared with data (your usage, alternative quotes, and budget constraints), and remember that Microsoft’s initial offer is just a starting point. Pushing back respectfully but firmly can yield substantial savings across a three-year deal.
What If Microsoft Pushes Copilot or AI Add-Ons?
The 2025 renewal season comes with a new twist: Microsoft is heavily promoting its AI-powered add-ons, like Microsoft 365 Copilot and other “intelligent” services, as must-have enhancements.
You may find that your Microsoft account team strongly encourages (or bundles) these AI add-ons in your renewal quote. So how should you handle it?
First, recognize why Microsoft is pushing these: they’re new, premium-priced offerings that increase your spending.
Copilot, for example, is an exciting productivity tool, but it has not yet been proven at scale, and it comes at a high cost per user. From a customer standpoint, you need to balance innovation with value:
- Don’t Be Pressured into an All-In Buy: It’s rarely wise to immediately license every user in your organization for a brand-new, expensive product just because it’s offered. If Microsoft suggests a full deployment of Copilot or a similar solution, consider starting with a smaller scale.
- Pilot-First Strategy: A best practice is to conduct a pilot program. Negotiate for a limited quantity of AI add-on licenses (say, for the R&D team or a group of power users) or even request a trial period. See how the tool performs in your environment and whether employees truly use and benefit from it. You can agree to revisit expansion in 6 or 12 months based on pilot results. Microsoft often prefers a sale now rather than none, so that they might agree to a pilot-friendly deal (e.g., 100 licenses at a discounted rate for the first year).
- Budget Impact Awareness: These AI add-ons can significantly increase your annual Microsoft spend. Ensure you’re not trading off more critical needs for a shiny new thing. If Copilot is $30/user/month, that’s $360 per user per year – for 1,000 users, we’re talking $360,000 a year extra. Does the ROI justify it? Use this kind of analysis in your negotiations: if Microsoft wants a large Copilot deal, perhaps they need to offset it with an additional discount on your core licenses or provide flexible terms (such as the ability to terminate it after a year if it’s not delivering value).
- Maintain Control of the Agenda: It’s your renewal, and your core needs (such as renewing Office 365, Windows, and security suites) should take priority in the negotiation. Microsoft’s reps have sales targets around new products, but you don’t have to make their goal your goal. It’s okay to say, “We’re interested in Copilot, but we will evaluate it on our timeline.” Sometimes deferring a decision on an add-on can even be used as a bargaining chip – e.g., “We won’t commit to Copilot this renewal, but if you hold pricing or give us X concession, we’ll pilot it and consider a mid-term add.”
In summary, treat AI add-ons like any other new investment: require a justified business case. If they fit your strategy and budget, negotiate the scope and price thoughtfully (perhaps phasing it in). If not, it’s perfectly acceptable to decline or delay.
Don’t let the hype derail your cost management. Microsoft’s next-big-thing will always be there when you’re ready – it’s better to get your core EA renewal right first.
Can We Renegotiate Contract Clauses (Not Just Pricing)?
Absolutely. While pricing is the headline item in any renewal, savvy customers also look at the contract terms to manage risk and gain flexibility over the next term.
A Microsoft EA comes with a standard set of terms and conditions, but larger enterprises often negotiate custom amendments or riders. Renewal time is your chance to revisit not just what you’re buying, but how the agreement is structured contractually.
Here are some contract clauses and terms you might renegotiate at EA renewal:
- Price Protections and Caps: By default, an EA fixes prices for products you license at signing, but if you add new products mid-term, those come at the current rates. You might negotiate a clause to cap price increases for any new additions or even cap the price for the next renewal (for example, ensuring that renewal pricing for certain key products won’t rise more than X%). This can guard against future list price inflation.
- True-Down Rights: As discussed, standard EAs don’t allow reducing counts mid-term. However, you could attempt to negotiate more flexibility if it’s crucial for you. For instance, some customers manage to include a one-time reduction option if a specific event occurs (such as divesting a business unit) or allow a limited annual reduction (say, up to 10%) in exchange for something else. Microsoft won’t freely offer this, but if you have a compelling case (and significant spend), it’s a conversation to have.
- Audit and Compliance Clauses: Microsoft has audit rights in the EA. You could seek to soften this by requiring longer notice periods, limiting audits to once per given period, or first allowing a self-assessment before a formal third-party audit is initiated. While Microsoft may not relinquish its right to audit, you might be able to agree on a more comfortable process. This can save you headaches later, especially if you have a good internal compliance record.
- Transfer and Merger Clauses: If your organization may restructure, merge, or split during the term, clarify the terms regarding the transfer of licenses or assignment of the agreement to a new entity. The standard contract covers affiliates, but specific scenarios might need explicit language. It’s easier to sort out these terms at renewal than to request exceptions mid-term.
- Cloud Service Terms: If your EA includes cloud services (which most do now), review terms like uptime SLA, data residency, security and privacy commitments, and even exit rights. While much of this is outlined in Microsoft’s standard Online Services Terms, enterprise customers can negotiate additional assurances or custom terms through a document known as a “Business Amendment” or a similar agreement. For example, ensuring you have continued access to your data for X days after a subscription ends, or negotiating an improved service credit schedule for outages.
- Payment Terms and Invoicing: Maybe you want to adjust the billing frequency or align payments with your fiscal quarters. Microsoft typically bills annually for EAs, but large deals may receive custom payment schedules or financing options. If cash flow is a concern, discuss this.
The main point is, don’t just accept the boilerplate if it doesn’t meet your needs. Your legal and procurement teams should review the renewal contract just as closely as the quote.
Flag any clauses that caused pain in the last term or pose risks in the future. Even if Microsoft doesn’t agree to every change, you may secure a few improvements.
Things like a slightly friendlier audit clause or a negotiated ability to true-down can be just as valuable as a discount in the long run, by preventing future costs or exposure. Remember, once you sign, you’re stuck with those terms for three more years, so it’s worth the effort now to get them right.
When Should We Start Renewal Planning?
Short answer: earlier than you think. Ideally, start planning your EA renewal 12 to 18 months prior to your agreement’s expiration. Kicking off preparations a year or more in advance may seem premature, but in practice, it’s the recipe for a smooth and successful renewal.
Here’s why starting early is important:
- Internal Assessment Takes Time: You’ll want to thoroughly review your current usage versus what you’re paying for. Identifying unused licenses, underutilized services, or opportunities to optimize (such as moving some users to different license plans) isn’t an overnight task. Starting 12+ months out gives you time to collect accurate data and involve the right people to analyze it.
- Exploring Options: If you’re considering major changes – such as switching some services to CSP, evaluating an EAS vs. EA, or even exploring alternatives to certain Microsoft products – you need runway to explore those options. For example, if you might move to cloud voice services or discontinue an on-premises product, you’ll likely have testing or pilot programs. An 18-month lead time allows you to pilot and compare options without pressure.
- Budgeting and Stakeholder Buy-In: Large enterprises synchronize their budget planning many months. If you initiate renewal discussions early, you can incorporate any expected cost changes or investments (such as new product add-ons) into your budget cycle. Additionally, it is essential to reach consensus among internal stakeholders (IT, finance, procurement, leadership) on what the company needs from the new EA well before the negotiations begin. Early planning meetings with all stakeholders ensure that there are no last-minute objections or wish-list items that arise when the clock is ticking.
- Negotiation Leverage: When Microsoft knows you’re planning, you send a message that you won’t be rushed into a subpar deal. Engaging your Microsoft account team 6-12 months in advance to discuss the renewal sets a collaborative tone and also gives them time to seek approvals for special pricing if needed. If you only open the conversation a month before expiration, Microsoft realizes you have little choice but to sign whatever is on the table. Early preparation is key leverage – it implies you have the time to say “no” or consider alternatives if the deal isn’t good enough.
- Avoiding Surprises: Starting early helps you identify any potential issues. Perhaps you’ve noticed that a certain product in your EA has a new version or licensing model on the way. Or Microsoft might announce a program change (like pricing adjustments or a new product SKU) that affects your renewal. With ample lead time, you can adapt your strategy. If you find out too late, you’re stuck reacting instead of planning.
In practical terms, if your EA expires in say December 2025, you should begin planning by summer or fall 2024. Form your core renewal team, gather current licensing info, and sketch your ideal outcome. By the time you’re 3-4 months from expiration, you ideally want negotiations wrapping up, not just starting. Early planning is the single biggest factor in taking control of your EA renewal rather than scrambling.
What Are the Top Mistakes to Avoid at Renewal?
Enterprise Agreement renewals come around only every three years, so it’s easy to slip up. Here are the top mistakes that organizations should avoid in a 2025 EA renewal:
- Starting the Process Late: The biggest mistake is waiting until the last minute to begin renewal work. Rushed renewals favor Microsoft, not you. Avoid panic by starting your renewal planning at least 12 months in advance (and engaging with Microsoft 6+ months in advance). Last-minute negotiations often mean missed savings and unfavorable terms.
- Renewing “As-Is” Without Analysis (Carrying Shelfware): Don’t just rubber-stamp your current EA into the next term. If you simply renew everything you had before, you’re likely carrying forward shelfware – licenses or services you paid for but aren’t fully using. Always analyze usage data for each component. Remove or reduce anything that does not provide value. This right-sizing is where many companies save millions.
- Not Involving Key Stakeholders: An EA touches many parts of IT and the business. If you only let IT or procurement handle it in a silo, you might overlook needs or redundancies. Engage stakeholders early, including IT operations, department heads, finance, and security teams. They can inform you about which licenses are truly necessary, or if a department plans to discontinue a Microsoft product. This prevents renewing something that a team intended to replace or ensuring you include something new that everyone will need.
- Failing to Benchmark and Negotiate: Going in blind on pricing is a costly error. Some organizations just accept Microsoft’s first quote or assume they have no negotiating power. In reality, you can and should negotiate every time. Seek benchmarks – what did similar companies pay? Get quotes via multiple licensing partners if possible. And don’t be afraid to push Microsoft for better discounts or terms; they expect it. The initial quote is not the best.
- Ignoring Alternative Licensing Options: Maybe an EA has been your default, but is it still the best fit? A mistake is not at least considering alternatives like CSP, MCA, or different Microsoft licensing programs. Even if you stick with EA, the exercise of comparing options (for example, pricing out your licenses in CSP) can reveal opportunities for savings or give you negotiation leverage.
- Letting Microsoft Upsell Unneeded Products: Microsoft will use renewal time to pitch new products (like that shiny AI add-on or an upgrade to a higher SKU). A common mistake is agreeing to add things without a deployment plan in place. If you buy 1,000 licenses of a new service “just in case” but have no immediate rollout strategy, they might sit unused – wasting money. It’s fine to adopt new technology, but do it with intention: have a plan (training, deployment timeline, pilot first, etc.) or hold off until you’re ready.
- Overlooking Contract Terms: Many focus only on price and ignore the fine print. Mistakes here include not reviewing changes in the renewal contract, which could include updated terms that are less favorable to you. For example, Microsoft might tweak cloud service terms or insert new policies. Skimming over those could bite you later (like stricter audit rights or price adjustment clauses). Always have your procurement/legal team do a sanity check on the renewal paperwork before signing.
- No Post-Renewal Optimization Plan: Once the deal is signed, don’t “set and forget” until 2028. A mistake is not assigning responsibility for tracking usage versus entitlements during the term. You should plan periodic internal audits and optimization reviews. This way, you’ll catch if you’re under-utilizing something (and can adjust or remove it next time) or if a new need arises (and can plan a budget for it). Companies that stay engaged with their license usage over the EA term have a much easier time when the next renewal comes.
Avoiding these pitfalls will help ensure your EA renewal is cost-effective and surprise-free. Essentially, be proactive, be informed, and be strategic – that’s the antidote to most common renewal mistakes.
Read about our Microsoft EA Optimization Service.
