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

Microsoft EA True Ups - Episode 7

Name: Microsoft EA True Ups - Episode 7
Uploaded: 2023-08-17T15:00:17+00:00
Duration: 1 min 2 s
Channel: Mike Austin
Description: Mike Austin explains Microsoft EA true-up rules for reducing licenses. On-premises licenses cannot be reduced at all. Enterprise subscriptions like M365…

17 Aug 2023 · 1 min

Watch on YouTube

1:02

Mike Austin explains Microsoft EA true-up rules for reducing licenses. On-premises licenses cannot be reduced at all. Enterprise subscriptions like M365 and Windows E3/E5 can only shrink back to your original signed quantity, not below it. An org that signed 5,000 M365 E3s and grew to 6,000 can only reduce to 5,000, not to 4,000.

Questions this video answers

No. Reductions are permitted only down to the quantity initially signed in the agreement (example: signed 5,000 → cannot reduce below 5,000 even if current usage is 4,000).

No. On-premises licenses have no reductions.

Chapters

If I have to true up, can I actually do reductions? So this is kind of a twofold answer. Here's the language out of the contracts, a section called subscription license reductions. Okay. And basically the answer here is if it's an on premise license, there are no reductions. None. Right. If it's, it's enterprise subscription. So let's go back. Enterprise subscriptions are Office 365M365E SKUs. Those are the EMS SKUs, and Windows E3 or E5, if I'm buying that as a subscription, those are enterprise. I can reduce, but only to the quantity that I initially signed for. So what does this mean? Let's say I'm an organization that signed for 5,000 M365 E3s in year one, I grew to 6,000 in year two, times got tough and we shrunk to 4,000. Right. What that means is on my year two anniversary, instead of paying for 6,000, I can decrease not to 4, but the 5. I can only go to what I signed. There's a floor to where I can go.