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Microsoft Revamps Enterprise Software Licensing

Antony Savvas is a freelance journalist and the editor of TechWeek's sister publication ChannelBiz

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Microsoft Enterprise Advantage makes an appearance in 2017 with other changes also coming to make software purchases more flexible and cost effective

Microsoft is promising a “better” way to buy bulk enterprise wide software licences from 2017.

The new Enterprise Advantage programme will allow commercial customers to buy organisation-wide licenses on the Microsoft Products and Services Agreement (MPSA) for perpetual and subscription software. This includes cloud apps like Office 365, Microsoft Azure and CRM Online.

Microsoft stressed that Enterprise Advantage on MPSA will offer the same pricing and coverage as the Enterprise Agreement but provides added flexibility. At launch, Enterprise Advantage on MPSA will be available for all commercial customers in markets where the MPSA is available.

Microsoft licensing

Microsoft“We’re announcing a new way to buy, marking yet another step in our licensing transformation to make it easier for customers and partners to do business with Microsoft,” said Richard Smith, general manager, Microsoft Worldwide Licensing & Pricing (WWLP).

“Enterprise Advantage brings traditional Enterprise Agreement benefits to the MPSA and provides the best value for a three-year, organisation-wide and optional platform-wide purchase.”

“[Customers will be able buy] at any time, whatever they need, with no additional enrolments.”

Smith claimed this will bring “budget predictability and price protection” to IT managers and allow businesses to make more cost-effective purchases and be able to quickly adapt to changing needs.

The new programme is described as the “optimal choice” for most customers with up to 2,400 users or devices.

“We anticipate introducing similar offerings called Government Advantage and Education Advantage later in 2017, and will continue to build additional functionality over time to support all of our customers with modern licensing choices,” added the company.

As previously announced, Microsoft is also retiring the Select Plus buying option this month. In addition, it is increasing the minimum Enterprise Agreement (EA) commitment. For commercial customers signing new Enterprise Enrolments or Enterprise Subscription Enrolments, the minimum commitment increases this month to 500 from 250 users or devices.

“For new commercial customers with 250 to 499 users or devices, we recommend the MPSA, or the Cloud Solution Provider (CSP) programme for those looking for partner-managed services,” Microsoft said.

Originally published on ChannelBiz