Medical Devices Practice

Connected devices change the contract. Microsoft hopes you do not notice.

Medical device manufacturers design, validate, and field products that talk to Azure, send telemetry through M365 services, and depend on Microsoft infrastructure for post market surveillance. The licensing implications run far past the corporate seat count. We negotiate the commercial instrument that reflects the product itself, not just the workforce. $420M+ recovered. 340+ engagements. Buyer side only.

Contact Us EA renewal negotiation →
Savings recovered
$420M+
Across Microsoft renewals, true ups, and audit settlements
Engagements delivered
340+
Fortune 500, mid market, regulated, public sector
Audit exposure cut
79%
Average reduction on formal compliance reviews
Practice depth
20+ yrs
Combined experience across the Microsoft estate
Sector brief

Where device contracts change shape.

Medical device companies sit at the intersection of manufacturing, regulated software, and embedded cloud. Microsoft prices the corporate stack with confidence and prices the product side of the relationship with imprecision. The leverage is in the imprecision.

01 · Regulatory pressure
FDA 510(k) · PMA · MDR · ISO 13485 · UDI

Regulated product, unregulated commercial terms.

Device manufacturers must demonstrate validated environments, traceability, post market surveillance, and quality system controls. Microsoft prices the regulated tier into the corporate footprint. The product side, where devices talk to Azure IoT, Defender for IoT, and Sentinel, sits in a different commercial frame entirely.

Top concerns: Azure IoT, Defender for IoT, Sentinel, embedded WindowsRead more →
02 · Products that dominate spend

The device manufacturer stack looks like this.

Microsoft 365 across product engineering, regulatory affairs, manufacturing, and commercial functions. Azure IoT Hub and Device Provisioning Service for connected products. Defender for IoT across hospital deployed devices. Sentinel ingesting field telemetry. Embedded Windows or Azure Sphere where applicable. Dynamics for service and field operations. Power BI for quality and post market analytics.

Median ARR: $7M to $80MSee products →
03 · Leverage Microsoft denies

Embedded and IoT discounting.

Volume tiered IoT pricing, embedded device licensing, and connected product specific Azure commits exist. They are gated behind specialist teams the standard renewal motion rarely engages.

Concession band: documented
04 · Our angle

Negotiate the product, not just the workforce.

We negotiate IoT, embedded, and connected product terms separately from the corporate stack. The result is a deal sized to the actual telemetry, not the rep's preferred consumption model.

Lead service: EA renewal negotiation
05 · Field deployment complexity

Hospital deployed devices.

Defender for IoT and Sentinel costs scale with the number of devices deployed in hospitals. Microsoft prices on the device's data signal, not the manufacturer's revenue. The licensing follows the field, not the headquarters.

Multiyear posture
06 · Practice scope
14+ device engagements

From global imaging vendors to single product startups.

We advise across the medical device map. Global imaging vendors on Azure cloud commits supporting connected modalities. Cardiac and orthopedic device firms on Defender for IoT and Sentinel scaling. Diabetes and continuous monitoring companies on Azure consumption negotiation. Surgical robotics firms on embedded and field service licensing. Same discipline, scaled to the contract.

Sub practices: imaging, cardiac, orthopedic, diagnostics, surgical roboticsSee sub practices →
Advisory angle

Advisory built for this sector.

The pattern that fails: a procurement led negotiation that wins price but loses on terms that examiners, auditors, or operators later flag. The pattern that works: a posture led negotiation where pricing falls out of the work, not the other way around.

Why device contracts run hot.

Microsoft sells device manufacturers a corporate stack indistinguishable from a comparably sized industrial company, then layers IoT, Defender for IoT, Sentinel, and Azure consumption on top as if those services were a separate relationship. They are not. The device cloud is part of the EA. The leverage in one section translates to the other.

The most common pattern: a device manufacturer paying full list on Defender for IoT and Sentinel because the security team negotiated those services through Azure rather than through the EA renewal. Pulling them into the EA cycle creates a volume tier that procurement could not access standalone.

The device engagement model.

We start with the product roadmap. How many devices are in the field today, how many will be in the field across the EA term, how much telemetry flows per device, and what regulated obligations attach. From that we model the actual Azure, IoT, and security consumption profile. Then we negotiate the corporate stack and the product cloud together, never separately.

We do not run a quality system audit. That is the work of internal QA and regulatory affairs. We translate quality and regulatory inputs into commercial terms and run the deal desk negotiation with the field, corporate, and product specialist teams simultaneously.

Anonymized outcome

One representative sector outcome.

Anonymized but verifiable on reference call. Drawn from active engagements in the trailing twelve months across the practice.

Engagement of the Quarter · Medical Devices · Q3 2025

A global imaging vendor cut its $58M EA renewal by 33 percent.

The opening quote treated the manufacturer's corporate seats at full E5, sized Defender for IoT and Sentinel against the manufacturer's revenue rather than the device population, and committed Azure capacity for a connected modality roadmap the product team had refocused. We rebuilt the proposal from product telemetry, hospital deployment data, and the live product roadmap.

They negotiated our cloud the way our engineers think about it. Per device, per signal, per region. Microsoft had not seen that level of granularity from a customer of our size.Chief Information Officer · Global imaging vendor
Total reduction on quote
33%
Initial quote
$58M
Negotiated
$38.9M
3 yr savings
$19.1M
Timeline
14 wks
Engagement deliverables

What you walk away with.

Every medical device engagement produces written deliverables your CFO, CIO, quality leader, and product leader can read directly. Nothing lives only in our heads.

Posture memo

Board ready narrative of where the contract sits, what leverage exists, and what the disciplined ask is. Signed off jointly with internal stakeholders.

Formatmemo

Benchmark band

Concession data from signed contracts in your sector, your spend tier, and your renewal quarter. Sourced from active practice engagements.

Formatdata

Negotiation timeline

Calendar of milestones, internal alignment checkpoints, Microsoft engagement touch points, and decision dates from posture through signature.

Formatplan

Concession scoreboard

Live tracker of every ask, every counter, every Microsoft concession landed, and every term we have not yet closed. Updated through signature.

Formatlive
Initiate engagement

Negotiate before the quote becomes a position.

Two analyst calls. No pitch. We tell you what we would do, what the leverage actually is for a medical device manufacturer, and whether we are the right firm for this engagement.

Who we work for.Buyer side only. No reseller relationship with Microsoft. No partnership of any kind. We earn nothing from products sold or renewed, only from outcomes delivered against the contract.