Cloud Licensing Strategy

Use cost modeling to optimize your ROI on cloud-based subscriptions.

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Leverage Microsoft Contracts to Reduce Costs

Before making any decisions on migrating to the cloud, consider the stage of your Microsoft contract.

Existing contracts for traditional Microsoft licenses include the Enterprise Agreement (EA), Product & Services Agreement (MPSA), Select Plus and others. Some of the on-premises licenses acquired under these programs can be used with cloud providers such as AWS, OCI and Azure, however: 

  • Some come with restrictions and rules.  
  • Some can be extended and used in both on-premises and cloud.  
  • Others become obsolete. 

New contracts with subscription options can also be leveraged in ways that impact cloud-based costs. The key factors that determine the benefits of a new contract are the:  

  • Longevity of the assets in or planned for use.  
  • Flexibility requirements 
  • Benefits unattainable through existing contracts. 
  • CAPEX or OPEX accounting preferences. 

Partner-only contracts may be financially advantageous compared to a Microsoft contract but can have unintended consequences. For instance, a Microsoft partner might incentive you with better pricing on Azure subscriptions than Microsoft will directly. Bypassing a direct Microsoft contract, including the Azure Consumption Commitment (MACC) enrollment, could impact Microsoft Unified (support) availability and the Microsoft relationship itself. Conversely, those who opt for third-party support may benefit from reduced Unified costs and a deepened partnerdirect relationship.  

Value of Cloud Licensing Strategy

Identify Licensing Opportunities

Document available use licenses for current and potential cloud providers and the rules and restrictions applicable to each.

Assess Existing Use

Calculate where licenses are already in use to avoid “double-dipping” and classify those with short- and long-term dual-use (on-premises and cloud) rights.

Build Cost Models

Design and build licensing models by comparing cloud subscription costs with contract license options.

Incent Contract Providers

Demonstrate cost models to potential providers as an incentive for them to “do better” and provide more cost-effective options.

Engage Remend for Microsoft Expert Services

Remend understands the complexities of Microsoft contracts, licensing rules and restrictions and will assist you in cost modeling to optimize your return on investment. Adding Remend as insulation between you, Microsoft and their partners is especially important to give you leverage and maintain clarity.  

Microsoft’s goal is to secure cloud-based subscriptions for everything, eventually driving legacy licensing into oblivion. This works to Microsoft’s advantage by locking customers into paying indefinitely. Remend strives to optimize costs and create contractual flexibility. 

Remend Cloud Licensing Strategy Program

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Examine (pre)existing software use and costs to expose financial waste and possible cloud deployment opportunities.

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Conduct a licensing analysis of the current on-premises environment(s).

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Assess current and future state cloud licensing requirements for contract optimization and subscription cost efficacy.

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Engage Microsoft and partners, as necessary, to assess solutions and increase competitive pressure throughout the purchase process.

Manage Your Microsoft Licenses with Confidence!

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