There was a time when the Enterprise Agreement or EA approach was more convenient than buying individual licenses every time new installation was needed for the organisation.
Software licensing can get expensive in a second. AS number of users increase, you may find that your old methods of acquiring software and cloud services are no longer financially viable.
In this article, we would like to provide some perspectives on both options and compare why moving to Cloud Solution Provider (CSP) is a real money saver.
What is The Microsoft EA?
Microsoft’s Enterprise Agreement (EA) is a licensing option that can deliver exceptional value and cost – savings for customers, under the right circumstances. It’s not applicable for everyone, but if your IT needs align with EA strengths, there’s no better way to achieve your Microsoft goals and save money in the process.
Here are few features of EA:
- Upgrade rights to the latest technology through Software Assurance
- The ability to standardise your IT choices across the enterprise, so you can tap into the latest technology at a substantial savings
- Spread payments during a three - year term helps streamlining your budgeting process
- Only need to place one order annually via portal
- 60 days product evaluation option before full commitment towards product purchase
- The ability to license additional software products under the terms of your original agreement to help you respond rapidly to changing business needs while keeping costs predictable
We found that EA approach is quite challenging, especially for small businesses. An EA is a three – year agreement and requires a minimum of 500 licenses. Customers pay upfront for the entire year, which is counter – productive for a subscription service and can make cash flow tough in the beginning.
Additional user licenses will be charged on the next billing anniversary, which can make cross charging quantities difficult. Companies may have to pay for licenses for unused months if they are divested a division in the first month after their anniversary.
What is Microsoft Cloud Service Provider (CSP)
The Microsoft Cloud Solution Provider Program (CSP) enables partners to directly manage their entire Microsoft cloud customer lifecycle. Partners in this program utilise dedicated in – product tools to directly provision, manage, and support their customer subscriptions.
Partners can easily package their own tools, products and services, and combine them into one monthly or annual customer bill.
Versions of CSP: Direct and Indirect
There are two versions of CSP, the Direct (Tier 1) model and the Indirect (Tier 2) model. Partners can choose both. The difference between two models is that the Direct model requires a robust infrastructure to enable end – to – end ownership of the customer relationship. There are a lot of requirements to be met and for most partners this isn’t feasible. The Indirect model however, offers partners (resellers) the opportunity to work with an Indirect CSP partner who can provide the tools and resources necessary to manage their customer relationship. By far, this is the best option.
Benefits of Microsoft Cloud Service Provider
CSP Licensing is based on a month – to – month commitment, which can be attractive for businesses in volatile markets with inevitable ebbs and flows or businesses that have seasonality. It is also beneficial for organisations who find it difficult to predict longer – term usage requirements or those who may want to start with a basic plan as they move to Office 365 (Like email only) and then increase the licensing level as users adopt the functionality.
When to consider purchasing from a CSP? When your organisation is consider moving to full – cloud operation, this is the best approach available from Microsoft. You will have a layers of security available in single tenant environments or higher MS 365 plans or Microsoft Dynamics 365 plans.
Another case example is for startup or small businesses with 30 employees is looking to grow about 100 within a year. They’re in need of Office 365, but may be adding more robust production or supply chain resources that could require additional MSFT software offerings and tools in the near future. This type of organisation is ineligible for Microsoft EA, but can have significant flexibility with Microsoft CSP, in a way that users can be added or removed any time in the year, and scaling up to grow into Microsoft EA within few years.
How Metisc Can Help
With more than 25 years of experience in the software business, we know just what you need.
Microsoft Certified Professionals for Microsoft Licensing on Staff
- We are Microsoft Gold Partner Microsoft CSP made up of number of talented individuals with wealth of Microsoft certification specialising in ERP and business software skill.
Metisc Service Desk will be your primary O365 Support Team with Access to escalate directly to Microsoft Tier 3.
- Australian based – quicker response for domestic market and your trustable partner.
- We know your account and keep detailed notes on your environment.
- Our support is included a comprehensive organisation setup Office 365 & Dynamics 365, so we know what products may be in your environment that could be efficient at your phase of business.
Get in touch with us today and find out more about more benefits of moving to CSP approach.