Mike AustinFounder & CEO, Metrixdata 360 Inc. · Mike Austin | Helping enterprises take control of software costs through data, strategy, and relentless execution

Cloud Service Provider or Enterprise Agreement: Choosing the Right One for You

Name: Cloud Service Provider or Enterprise Agreement: Choosing the Right One for You
Uploaded: 2024-05-24T20:30:03+00:00
Duration: 48 s
Channel: Mike Austin
Description: Mike Austin explains differences between purchasing through a Cloud Service Provider versus an Enterprise Agreement, focusing on a limitation of…

24 May 2024 · 1 min

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0:48

Mike Austin explains differences between purchasing through a Cloud Service Provider versus an Enterprise Agreement, focusing on a limitation of enterprise agreements: you cannot reduce the number of EA products below the originally contracted quantity. He gives a concrete example: an EA for 1,000 Microsoft 365 E3 licenses; after laying off 200 employees (down to 800), the EA remains at 1,000 so the organization must continue paying for 1,000 licenses.

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So the other thing is, from a reduction perspective, you can only reduce EA products to what you signed up for when you signed up for the ea. So let's just take a simple example. I sign an enterprise agreement for 1000 Microsoft 365E3. So I get a thousand employees. I buy 1000 Microsoft 365E3s. Okay? So if I wanted to reduce that, you know, Covid hit adds. Unfortunately, let go 200 people. We're now down to 800. The EA is set at that baseline of a thousand. I can't go down to 800. I'm stuck at 800 users. Or, sorry, 1,000 users. So I have to pay for them, right?