Microsoft Enterprise Agreement Structure: What You Need To Know
A Microsoft Enterprise Agreement is a licensing model designed for organizations that want to purchase large quantities of Microsoft products. This agreement enables the organization to standardize their IT environment while minimizing costs. However, before you sign up for a Microsoft Enterprise Agreement, it’s essential to understand the structure and requirements of the agreement.
Here’s what you need to know about the Microsoft Enterprise Agreement structure:
1. Enrollment
The first step to signing up for a Microsoft Enterprise Agreement is the enrollment process. This is where you define the agreement’s terms, pricing, and payment options. You’ll also select the products and services you want to license under the agreement.
2. Products and Services
Under the Microsoft Enterprise Agreement structure, you have access to the complete suite of Microsoft products and services. This includes the latest versions of operating systems, office suites, server software, and cloud-based solutions like Azure and Microsoft 365.
3. Term
The Microsoft Enterprise Agreement typically has a three-year term, during which you can add or remove products and services as needed. At the end of the term, you’ll have the option to renew the agreement or allow it to expire.
4. Pricing
The pricing for the Microsoft Enterprise Agreement is based on several factors, including the number of licensed products, the size of your organization, and the program type. There are three program types: Enterprise, Select, and Select Plus. Each has its own pricing structure and benefits.
5. Volume Discounts
One of the primary benefits of the Microsoft Enterprise Agreement is volume discounts. The more products and services you license under the agreement, the greater the discount you’ll receive. This can lead to significant savings for large organizations.
6. True-Up
During the term of the Microsoft Enterprise Agreement, you’ll need to conduct a True-Up once a year. This is where you reconcile your licensed products and services with your actual usage. If you’ve used more products and services than you’ve licensed, you’ll need to pay for the excess. If you’ve used fewer, you’ll receive a credit towards future purchases.
7. Software Assurance
The Microsoft Enterprise Agreement also includes Software Assurance, a comprehensive support and maintenance program that includes upgrades, training, and technical support. This ensures that your organization has access to the latest Microsoft technology and support for any issues that may arise.
In conclusion, the Microsoft Enterprise Agreement structure provides a comprehensive and cost-effective solution for organizations looking to license Microsoft products and services. By understanding the enrollment process, product and service options, pricing, volume discounts, True-Up requirements, and Software Assurance benefits, you can make an informed decision about whether this agreement is right for your organization.