Microsoft Cloud Licensing Strategy
Maximize ROI with cost modeling for cloud subscriptions
Schedule a Free ConsultationLeverage Microsoft Contracts to Reduce Costs
Before migrating to the cloud, it’s crucial to assess your current Microsoft contract. Understanding the nuances of your licensing agreements can help you unlock cost-saving opportunities while ensuring compliance.
Understanding Your Microsoft Licensing Options
Microsoft offers various licensing agreements, including:
- Enterprise Agreement (EA)
- Product & Services Agreement (MPSA)
- Select Plus
Many on-premises licenses obtained under these agreements can be extended for cloud usage on platforms like AWS, OCI and Azure. However, key considerations include:
- Certain licenses come with restrictions and rules.
- Some allow dual-use (on-premises and cloud), while others become obsolete.
- New subscription-based contracts impact cloud costs differently depending on their structure.
Key Factors in Cloud Licensing Decisions
When evaluating a new contract, consider:
- Asset longevity – Evaluate how long software assets will be utilized.
- Flexibility needs – Ensure your contract adapts to business growth and technological shifts.
- Contractual benefits – Identify advantages unavailable in legacy agreements.
- Financial preferences – Weigh CAPEX vs. OPEX accounting implications.
Be Aware: Microsoft partners may offer discounted Azure subscriptions, but opting out of a direct Microsoft contract—such as an Azure Consumption Commitment (MACC)—could affect Microsoft Unified support availability. Conversely, third-party support can lower Unified costs and enhance direct partnerships.
The Value of a Strategic Cloud Licensing Plan
Identify Licensing Opportunities
Document all applicable use licenses across cloud providers and determine applicable rules and restrictions.
Assess Existing License Utilization
Analyze where licenses are currently deployed to avoid redundant spending and maximize dual-use benefits.
Develop Cost-Effective Licensing Models
Compare cloud subscription expenses with contract-based licensing to design an optimized cost structure.
Negotiate with Cloud Providers
Leverage cost modeling data to encourage vendors to offer better pricing and more competitive terms.
Partner with Remend for Expert Microsoft Licensing Guidance
Navigating Microsoft contracts and cloud licensing rules can be complex. Remend provides expert guidance to help you:
- Optimize ROI through data-driven cost modeling.
- Ensure compliance with evolving Microsoft policies.
- Negotiate better terms by increasing competitive pressure.
- Maintain leverage in vendor discussions while ensuring contract flexibility.
Why Cloud Licensing Strategy Matters
Microsoft aims to shift all licensing to cloud-based subscriptions, reducing legacy licensing options and increasing customer dependency. Remend works to counterbalance this by helping businesses minimize costs, enhance contract flexibility and optimize licensing strategies.
The Remend Cloud Licensing Strategy Program
Assessing current software usage and identifying inefficiencies.
Conducting a licensing analysis of your on-premises environment.
Evaluating cloud licensing needs for contract optimization.
Negotiating with Microsoft and partners to drive competitive pricing.
Manage Your Microsoft Licenses with Confidence!
Ensure a value-driven relationship with Microsoft by making informed, strategic decisions.
Contact us today!