We were engaged to support a European customer facing an urgent and complex situation involving their Microsoft software stack. The goal was to assess their current licensing setup and provide strategic recommendations amidst tight deadlines and upcoming contract renewals.
Situation:
- CSP with M365E3: Uncertainty about moving to E5 and future contracts. The current CSP contract needed legal review (3-year service terms), addressing finance and healthcare data issues, and preparing for a tender in 9 months.
- DataCenter Migration: Planned migration from an existing on-premise solution to a hosting provider, including SPLA and Azure. POC technical already signed.
- Server and Cloud Enrolment (SCE) Renewal: Short renewal period of their SCE in 4 weeks with no baseline available.
- SaaS Commitment: M365E3 commitment on CSP until next year.
- Microsoft Offer: M365 E5 offer is based on an internal project that has not yet been approved by the executive team.
The urgency stemmed from the imminent expiration of their on-premise server licenses covered by an Enterprise Agreement with SCE enrolment, ending in 4 weeks. Typically, a thorough assessment via SAM is required, but time constraints necessitated a focused approach.
Our Approach:
We devised a 4-phased plan:
- Phase 1: Assess and analyse all existing documents in week 1.
- Phase 2: Focus (Triage) on the on-premise renewal. From the initial plan to renew the SCE as-is, we recommended alternatives in week 2 and used the last two weeks to discuss with all engaged partners (Microsoft, the LSP, the CSP Provider, and the new Hosting Provider).
- Phase 3: After SCE renewal, kick off the SaaS renewal and technology discussions.
- Phase 4: Conduct tender work and contract negotiations in time and optimize their Azure spend
By prioritizing the Server and Cloud Enrolment (SCE) renewal first and consulting on the necessary shifts to the new hosting provider, we educated the customer on focused licensing options. We demonstrated, in alignment with the hosting partner, that only SQL and WinSrvStd needed renewal, not the current WinDC. Additionally, convincing Microsoft to use the best Euro pricelist for the SCE only for SQL and also put additional Server products on the MPSA avoiding a compliance issue with the SCE plus EURO saved additional and made the whole DC environment compliant.
Key Outcomes
By prioritizing the SCE renewal and guiding the customer through the necessary transitions, we were able to implement focused licensing solutions. Our efforts included the following:
- Licensing Optimization: In collaboration with the hosting provider, we determined that only SQL Server and Windows Server Standard (WinSrvStd) licenses required renewal, eliminating the need to renew Windows Datacenter (WinDC) licenses.
- Cost-Effective Pricing: We negotiated with Microsoft to use the most favourable Euro pricelist for the SQL Server SCE renewal and strategically placed additional server products under the Microsoft Products and Services Agreement (MPSA), avoiding any compliance issues with the SCE.
- Cost Savings: This strategic approach resulted in over 60% cost savings compared to the customer’s initial estimates.
- Compliance Achieved: We ensured that the data centre environment was fully compliant, avoiding any potential legal or financial risks.
- Strengthened Microsoft Relationship: The successful SCE renewal established a strong working relationship with Microsoft, positioning the customer for future contract negotiations, including the transition to M365E5 when the CSP commitment ends.
- Trusted Advisor Role: Our ability to navigate these challenges earned the trust of the customer, solidifying our role as their strategic advisor for future phases and beyond.
Conclusion
The story is a showcase our expertise in managing complex Microsoft licensing challenges, delivering both significant cost savings and long-term strategic value. By leveraging our deep understanding of licensing, compliance, and cloud migration, we helped the customer achieve a compliant state for their data centre while positioning them for future success.
