As a public company, Microsoft`s mission is to accurately predict revenue. To do this, the company must have a clear overview of its sales pipeline and be able to close purchases and renewals faster and earlier in the quarterly sales cycle. There are a limited number of legal resources and license desks to process these transactions, and it is almost impossible to process paperwork less than two weeks before a calendar year, fiscal year or end of the quarter. Managing these largest volumes in deal volume is a challenge for Microsoft`s operations, and delays in this pipeline can have a domino effect on quarterly and annual revenue, share price and overall market perception. Customers should use the supplier`s desire to prevent purchases and extension periods accordingly. Contrary to popular opinion, Microsoft may be more flexible in negotiations outside of their peak sourcing periods. With the structure of registration agreements, you can easily add new products and services if necessary: transparency on what constitutes a fair price for Microsoft`s offers is the first step towards reducing EA`s costs. But that`s only half the fight. To effectively reduce costs, customers need to understand how their individual business requirements meet standardized conditions (especially for cloud offerings), dozens of license/subscription swaps, and the options available to them.
As there are more options available, it is important that customers understand which licensing and subscription programs best support their technology, business and cost management requirements. and details of compliance and costs associated with migration from current states to future countries. In addition, companies need to understand where Microsoft is willing to be flexible, because it refers to the conditions of price protection and use elasticity, especially in the midst of economic volatility, and negotiate these conditions accordingly in their EA. Microsoft`s mission is to transfer its customers within the traditional on-premise software company to its subscription-based cloud services. Revenue from its cloud commercial offerings is growing strongly, while traditional software sales are declining and the mix is weighing on Microsoft`s ability to support a multi-faceted business. Microsoft`s success will be measured against the success of this mission, and customers will be under increased pressure to travel to the cloud or to pay for on-prime-price solutions through increased contract and price complexity.