The Enterprise Agreement has become a lot less restrictive since the introduction of Cloud Subscription Services. For example: The Enterprise-wide commitment requirement has been removed for a large number of online Services and customers can report license reductions at anniversary. Such features move customers closer to “pay as you go” model.
Whilst this is true and most certainly enabled a lot of companies to gradually adopt online Services smoothly – the EA is a 3-year contract and does not easily allow to manage potential short term license requirements. Further Microsoft has announced that from July 1st – the minimum commitment for the EA will be going up from 250 to 500 users – we think it is therefore time to have a closer look at purchasing options under MPSA.
The MPSA offers a variety of options how subscriptions can be purchased for a shorter period of time and also offers the flexibility to choose anniversary dates on a Purchasing Account Level.
The below table shows the high level differences how Office 365 Subscriptions can be acquired under EA and MPSA. The illustration following shows in more detail the various available subscription terms.
Good to Know
Short Term Subscriptions
Under MPSA Short-term subscriptions are priced at a slightly higher price point to the regular subscriptions. Also – since MPSA does not know the license reduction process below is an illustration how a short term order meeting the below requirement would have to be placed:
4 orders would have to be submitted in July:
- 4 months (August – November) for 500 licenses (total licenses in November 500)
- 3 months (August – October) for 700 licenses (Total licenses in Aug, Sept, Oct) 700+500)
- 2 months (August – September) for 500 licenses (Total licenses in Aug, Sept 500+700+500)
- 1 month (August) for 300 licenses (Total licenses in August 300+500+700+500)
For Existing EA Customers
Even existing EA customers may have short term subscription requirements and it could be valuable to see if MPSA could be used in parallel to the EA for certain scenarios.
Offerings by Cloud Solutions Providers
Cloud Solutions Providers are Microsoft Partners that are selling / reselling Microsoft Cloud Services. Customers may find that CSP’s offer short term subscriptions as well.
Planning and managing on boarding and decommissioning carefully in combination with choosing the right vehicle can help saving costs – we at Cloud Optics can help your organization choosing the right contractual vehicles for your short-, mid- and long-term plans.
Please do not hesitate to contact me email@example.com
MPSA Licensing Manual