Microsoft EA Renewal Timeline
Introduction – Renewal Is Negotiation Time
Renewing a Microsoft Enterprise Agreement (EA) is not a rubber-stamp exercise — it’s the best opportunity to renegotiate your Microsoft relationship.
Every EA renewal is high stakes. Microsoft will often push for cost uplifts at each renewal, expecting customers to simply extend the deal.
However, if you prepare properly, you can turn the tables. Renewal time is when buyers hold the most power – you can push back on pricing, adjust what you buy, and even say “no” or walk away.
Microsoft is aware of this, which is why its sales teams engage early and push for a prompt commitment. The key is to treat your renewal like a negotiation, not a formality.
Read our ultimate guide to Microsoft Renewal Negotiations: How to Beat Price Uplifts and Secure Discounts
18 Months Before Renewal: Start Your Internal Review
Eighteen months before your EA expires, kick off internal renewal planning.
Begin by auditing your current licenses and usage to pinpoint any shelfware (licenses you’re paying for but not using). It’s common after a few years to have over-allocated or unused subscriptions that no longer match your needs.
Next, review your contract terms — note any notice periods for changes or non-renewal, and note any true-up obligations. Set your high-level goals for the renewal early: for example, you might aim for a flat renewal (no cost increase) or set an upper limit like “no more than a 5% increase,” and identify which products you could add or drop.
Additionally, assemble a cross-functional renewal team comprising representatives from IT, procurement, finance, and legal to ensure that all relevant perspectives are considered. Finally, coordinate with finance on initial budget projections for this renewal.
12 Months Before: Engage Stakeholders, Signal Intent
About one year before renewal, broaden your efforts internally and externally. Internally, engage department leaders and scrutinize which Microsoft products are truly needed going forward.
This is the time to challenge assumptions and trim the fat. Example: Do all users need Power BI Pro, or just 20%? Often, only a subset of users requires certain premium tools so that you can scale back those costly licenses for everyone else.
Externally, signal your intent to Microsoft (and/or your LSP) that you are evaluating your options. You don’t need to share specifics or make any promises — in fact, avoid any early commitment — but letting Microsoft know you’re doing due diligence puts them on notice.
It shows you’re not an auto-renewal and that they must earn your business again.
During this phase, also involve your finance team to set budget guardrails for the deal. Tip: Engage finance early so the negotiation aligns with approved budget ceilings. Knowing your budget ceiling in advance ensures you won’t agree to terms that exceed what the company is prepared to spend.
9–6 Months Before: Enter the Negotiation Window
Six to nine months before expiration, you enter the active negotiation window.
Around this time, Microsoft will typically present an initial renewal proposal (often by the 6-month point). Be ready to benchmark that proposal against alternatives.
Research what it would cost to license the same products through other avenue,s like Microsoft’s Cloud Solution Provider (CSP) program or the newer Microsoft Customer Agreement (MCA). Also consider competitive options for certain workloads (could some projects shift to Amazon or Google’s cloud instead of Azure?).
Even if you intend to stay with Microsoft, having these figures gives you leverage at the table. If Microsoft’s offer is too high or full of unnecessary extras, push back with your data and comparisons to other options.
At the same time, finalize your internal negotiation game plan. Prepare a counter-proposal or list of “must-have” terms that you need Microsoft to meet (for example, a deeper discount to meet your budget, or a cap on future price increases).
If talks aren’t progressing or Microsoft is resisting reasonable terms, don’t hesitate to escalate to senior Microsoft management.
A regional sales manager or executive can often approve better discounts or concessions beyond what a standard rep can offer.
Tip: If your renewal timing falls in Microsoft’s fiscal Q4 (April–June), leverage that year-end pressure.
Microsoft’s reps have quotas and are especially eager to close deals before June 30, so they may offer extra incentives or price breaks to get your signature by then.
Insights into how to manage the price uplifts, How to Negotiate a Cap on Microsoft Renewal Price Uplifts.
3 Months Before: Lock Core Terms
By three months before expiration, aim to have all major deal terms locked in.
Ensure the principal commercial points are agreed — that includes final pricing and discounts, which products and quantities you’re renewing (or changing), and any special conditions (like a price lock or an “uplift cap” on future increases). Getting this agreement in principle by the 3-month mark is critical because you’ll need the remaining time for paperwork and approvals.
Once you have a verbal or written agreement on terms, involve your legal team to review and finalize the contract.
Allow legal time to ensure the contract language matches your negotiated terms and includes all agreed protections. Also, execute any true-downs or license reductions now.
Tip: Don’t let Microsoft drag negotiations into the final month. If you’re still haggling over major points with just a few weeks to go, your leverage plummets — Microsoft knows it.
Push to finalize the deal well ahead of that deadline so you’re not forced into concessions at the last minute.
Renewal Date: Decision Time
When the renewal date arrives, it’s time to execute your decision. In most cases, this means signing a new EA that reflects all the hard-won terms you negotiated and aligns with your organization’s goals.
But remember, you don’t have to sign if the terms aren’t right. You can choose to delay the renewal rather than accept a bad deal. For example, you might negotiate a short extension or temporarily move to monthly subscriptions as a stopgap while you continue negotiating.
Once you are satisfied and ready to sign, double-check that the final paperwork exactly matches what was agreed — every discount, price point, and special term should be in writing.
Then sign. Ultimately, ensure the renewal outcome supports your strategic objectives. You’re committing to another multi-year period, so confirm the new EA is shaped around your needs, not just Microsoft’s standard playbook.
Post-Renewal Check: Verify & Track
Congrats — you navigated the negotiation and have a new agreement in place.
But your work isn’t done. Immediately after signing, verify the contract to ensure all your negotiated terms are correctly included (every discount, cap, and special clause). If anything important is missing or wrong, get it corrected by Microsoft.
Also, document any special terms for future reference, and set calendar reminders well in advance of the next renewal (and any required notice dates) so you can start planning early again.
Finally, establish regular license usage reviews (e.g,. quarterly) throughout the term to catch any shelfware. This ongoing oversight ensures you maximize the value of your licenses and face fewer surprises at the next true-up or renewal.
Read more Microsoft Renewal Pitfalls: 5 Gotchas to Watch Before You Sign.
EA Renewal Timeline: Key Milestones
To visualize the preparation process, here’s a timeline of key milestones leading up to a Microsoft EA renewal:
| Time Before Renewal | Key Activities & Focus |
|---|---|
| 18 months out | Form a renewal task force (IT, procurement, finance, legal). Audit current licenses and usage to find shelfware. Review the EA contract for any notice requirements or true-up rules. Define top objectives (e.g. no cost increase or specific savings targets). Start aligning budget plans with expected needs. |
| 12 months out | Complete a usage audit and decide what to cut or downgrade. Confirm what tools are truly needed versus excess. Explore alternative licensing models (CSP, MCA) or competitors as leverage. Signal to Microsoft that you are assessing all options (without committing yet). Ensure finance sets budget limits and leadership approves the general plan. |
| 9–6 months out | Get Microsoft’s initial quote around 6 months out. Benchmark that pricing against alternatives (other licensing programs or competitors). Internally, finalize your negotiation strategy and must-have terms. If needed, involve senior executives (on your side and Microsoft’s) to negotiate better terms. Use Microsoft’s fiscal year urgency (Q4, if applicable) to your advantage. |
| 3 months out | Conclude negotiations on all key terms (pricing, product scope, contract language). Execute any required true-ups or license reductions effective at renewal. Have legal finalize the paperwork, ensuring all negotiated protections (discounts, caps, flexibility clauses) are included. Avoid leaving any major issue open at this stage to prevent last-minute pressure. |
| Renewal (0 months) | Sign the new agreement (or chosen alternative) once it meets your requirements. If negotiations haven’t produced an acceptable deal, use a short extension or interim licensing (e.g. CSP) rather than rushing into a bad agreement. Ensure the signed contract matches your negotiated terms. Communicate any changes to all relevant teams. |
| Post-renewal | Verify the final contract details and pricing are correct. Document special terms for future reference. Set reminders for key dates (next renewal prep, notice deadlines). Continue periodic license usage reviews (quarterly, etc.) throughout the term to optimize use and avoid paying for unused licenses. |
Microsoft EA Renewal Planning Checklist
Use this checklist to stay on track during your Microsoft EA renewal planning:
- ✓ Audit licenses and usage early. Know exactly what you have and what’s actually being used.
- ✓ Set clear objectives. Define your goals (e.g. flat renewal cost, cap any price uplift, adjust product mix) upfront.
- ✓ Benchmark alternatives. Compare Microsoft’s offer with CSP, MCA, or other competitor solutions to understand your options.
- ✓ Escalate if needed. If Microsoft’s initial proposal is lacking, involve higher-ups (in your company and at Microsoft) to negotiate a better deal.
- ✓ Negotiate protections. Push for price holds, uplift caps, and flexibility clauses that safeguard your interests over the term.
- ✓ Time it right. Align your negotiation with Microsoft’s fiscal calendar if possible (year-end pressure can work in your favor).
- ✓ Get it in writing. Ensure all agreed terms (discounts, special conditions) appear in the contract, and double-check the paperwork before signing.
FAQs
When should we start planning for our Microsoft EA renewal?
Begin preparations about 12–18 months before your EA expires. This gives you ample time to assess needs, explore alternatives, and avoid last-minute pressure.
Can we delay an EA renewal if the terms aren’t favorable?
Absolutely. If you’re not happy with the terms by the expiration date, you can delay. Many organizations arrange a short extension of the existing EA (or opt for a month-to-month arrangement via CSP) to buy time while continuing negotiations. It’s better to extend or use an interim solution than to lock into a bad three-year deal.
How much of an uplift does Microsoft usually propose at renewal?
It varies, but it’s common for Microsoft to initially propose a 10–20% increase (or more) in costs at renewal. This might account for added products or standard price adjustments. Always scrutinize any proposed uplift — often a substantial portion can be negotiated down once you push back.
Is switching to a CSP program or another licensing model realistic during renewal?
It can be, depending on your situation. A Cloud Solution Provider (CSP) arrangement offers more flexibility (monthly terms, easy scaling) but can carry a higher per-unit cost and fewer enterprise perks compared to an EA. At the very least, evaluating these alternatives is a smart move — it shows Microsoft you have other options, which often leads them to improve their EA offer to keep your business.
What protections can we negotiate into an EA renewal?
Quite a few. For example, negotiate an uplift cap so Microsoft can’t raise prices beyond a certain percentage at the next renewal, and secure flexibility to reduce license counts if your user numbers drop. Any clause that gives you cost stability or usage flexibility is worth pursuing — just make sure it’s written into the contract.
Five Expert Recommendations
- Start early (at least 12–18 months ahead). The sooner you start planning for an EA renewal, the more leverage and options you’ll have. Never wait until the last minute.
- Benchmark and explore alternatives. Don’t take Microsoft’s first offer at face value. Compare pricing with other licensing programs and competitors’ solutions to determine your best alternatives.
- Use Microsoft’s fiscal calendar as leverage. Try to align your negotiation milestones with Microsoft’s end-of-quarter or fiscal year-end (June). Their urgency to hit targets can translate into better discounts for you.
- Negotiate contract protections, not just price. Go beyond price haggling. Insist on terms that protect you: caps on future price increases, “same discount” clauses for additional licenses, and flexibility to downsize if needed.
- Double-check and document everything. When the deal is set, verify every detail in writing. After signing, archive all special terms and set reminders to stay on top of the agreement throughout its life.
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