Microsoft Enterprise Agreement (EA):
- Volume Licensing: Tailored for large organizations with 500+ users or devices.
- 3-Year Commitment: License and services locked in for a three-year term.
- Cost Savings: Volume discounts for bulk purchases and predictable budgeting.
- Flexible Use Rights: Covers on-premises, cloud, or hybrid environments.
- Software Assurance: Includes updates, support, and training for maximum value.
Overview of Microsoft Enterprise Agreement (EA)
The Microsoft Enterprise Agreement (EA) is a comprehensive, volume licensing program that offers organizations a flexible, cost-effective way to purchase Microsoft products and services.
It is specifically designed for large enterprises with over 500 users or devices. Whether managing on-premises software or accessing cloud services, EA helps organizations streamline their licensing while benefiting from greater discounts and predictable budgeting.
The Enterprise Agreement (EA) is ideal for businesses looking for consistent, straightforward, and future-ready solutions. In this detailed guide, we’ll walk you through every aspect of the EA, from its benefits and licensing options to how organizations can use cost savings.
What is the Microsoft Enterprise Agreement (EA)?
The Microsoft Enterprise Agreement (EA) is a volume licensing program for large organizations.
It allows companies to acquire licenses and cloud services at a discounted rate by committing to Microsoft software and cloud products for at least three years.
Key features of the Enterprise Agreement include:
- Three-Year Commitment: Companies enter a three-year agreement to license software and services.
- Flexible Payment Options: Payments can be made annually, helping organizations better manage cash flow.
- Perpetual Licensing: The agreement offers perpetual licenses, which allow organizations to continue using the software after the agreement ends.
- Cloud-Ready Licensing: EA allows for easy transition to cloud services, making it ideal for businesses migrating from on-premises solutions.
Example: A company with 1,000 employees opts for a Microsoft Enterprise Agreement to get access to Office 365, Azure, and on-premises Windows Server licenses at reduced costs.
Benefits of Using Enterprise Agreement (EA)
Organizations that opt for a Microsoft Enterprise Agreement benefit from several key advantages:
- Cost Savings: EA significantly discounts volume licensing, reducing overall IT expenditure. The more licenses you buy, the greater the discount.
- Simplified Management: EA streamlines software acquisition, deployment, and compliance through centralized management. All licenses are under a single agreement, minimizing administrative tasks.
- Access to Latest Technologies: EA provides access to Microsoft’s latest innovations, including cloud services and security solutions. Companies under EA get priority updates, ensuring they use the most current features.
- Scalability: The Enterprise Agreement allows organizations to easily add licenses for new users or devices as they grow. This flexibility ensures that the licensing model fits your business expansion.
- Standardized Software: By licensing software across the entire organization, EA helps ensure everyone uses the same versions, making support and training more manageable.
Example: A healthcare company uses EA to ensure that all employees use the same versions of Microsoft 365, Azure Active Directory, and security tools, which makes IT management much easier and improves efficiency.
Enterprise Agreement (EA) Licensing Options
The Enterprise Agreement provides various licensing options depending on the organization’s needs:
- Enterprise Enrollment is ideal for organizations that want to license Microsoft’s full range of desktop and server products across their entire workforce. It includes services such as Office 365, Windows 10, and Azure.
- Enterprise Subscription Enrollment: This option is suitable for companies that want the same advantages of an Enterprise Enrollment but without the commitment to perpetual licensing. With a subscription, organizations only pay for as long as they use the software.
- Microsoft Azure Enrollment: Companies focusing primarily on cloud services can opt for an Azure-specific enrollment for discounted Azure pricing based on their committed usage.
Example: A multinational manufacturing company opts for Enterprise Subscription Enrollment, allowing it to use Microsoft products like Azure DevOps and Dynamics 365 without needing perpetual licenses.
Costs and Savings with Enterprise Agreement
The Enterprise Agreement helps organizations save on costs through volume discounts. The pricing model is tiered, meaning the larger the licenses you buy, the lower the cost per license. Additionally, EAs offer a fixed pricing structure for the entire three-year period, providing predictability in budgeting.
Key Financial Benefits:
- Volume Discounts: Larger purchases mean larger discounts.
- Predictable Payments: Fixed annual payments make it easy to forecast expenses.
- Azure Cost Management: EA helps with cost control through discounted Azure resources, which is particularly helpful for organizations planning significant cloud investments.
Example: A company planning to migrate 80% of its IT infrastructure to Azure chooses EA because it benefits from predictable pricing and discounted Azure usage.
Managing Software and Compliance Under EA
One of the biggest benefits of an Enterprise Agreement is the ease of managing software compliance and upgrades.
With EA, organizations receive Software Assurance, an important benefit that ensures they are always compliant and have access to the latest versions of Microsoft products.
Software Assurance Includes:
- Upgrade Rights: Free upgrades to the latest software versions are available during the EA term.
- Training Resources: Access to training programs that help employees learn to use new features.
- Planning Services: Expert assistance for implementing new software effectively.
Example: A logistics company under EA uses Software Assurance to get early access to Windows Server updates, train their IT team, and plan deployment, ensuring all systems remain compliant and up-to-date.
Who Should Consider the Enterprise Agreement?
The Microsoft Enterprise Agreement is designed primarily for large organizations. Companies that can benefit most include:
- Organizations with 500+ users or devices: EA is specifically designed for companies of this size or larger.
- Businesses Planning Cloud Migration: Companies looking to migrate on-premises workloads to Azure can use cloud-focused features.
- Organizations Requiring Standardization: Companies that want to standardize software and services across their business for better manageability and security.
- Enterprises Seeking Predictable Budgeting: The three-year fixed payment schedule can be valuable for companies needing to manage cash flow through predictable, consistent payments.
Example: A financial services company with 700 employees opts for EA to standardize their software environment and simplify budget management while transitioning to Microsoft Azure for some workloads.
How to Get Started with an Enterprise Agreement
To get started with a Microsoft Enterprise Agreement, organizations typically work with a Microsoft Licensing Solution Provider (LSP). The LSP will help assess your software requirements, explain the options, and guide you through enrollment.
Steps to Get Started:
- Evaluate Your Needs: Determine which Microsoft products your organization needs. This includes desktop applications, servers, cloud services, etc.
- Contact a Licensing Solution Provider: Work with an LSP to explore your options and receive pricing tailored to your requirements.
- Plan Your Deployment: Develop a deployment strategy with the help of your LSP or internal IT team.
- Sign the Agreement: Finalize your Enterprise Agreement, choosing the appropriate licensing option (perpetual or subscription).
Example: A retail chain interested in using Microsoft 365, Dynamics 365, and Azure contacts an LSP to start the process, evaluating both perpetual licensing and subscription-based options.
Microsoft Enterprise Agreement (EA) FAQs
What is a Microsoft Enterprise Agreement?
An EA is a licensing solution for organizations with 500+ users. It offers numerous options for purchasing Microsoft products in volume, making licensing more affordable and simpler to manage.
Who can benefit from an Enterprise Agreement?
Large enterprises seek a manageable and cost-effective way to purchase, deploy, and manage Microsoft products and services at scale.
What products are included in an EA?
EAs typically cover many Microsoft software and services, including Windows, Microsoft 365, and server technologies like SQL Server and Exchange.
How long does an Enterprise Agreement last?
An EA typically has a three-year term, with options to renew and adjust terms based on the organization’s needs.
Can an EA provide cloud services?
It includes access to Microsoft cloud services like Azure, Dynamics 365, and Microsoft 365, allowing for a flexible and hybrid approach to IT needs.
Is there a minimum purchase requirement for an EA?
Yes, the minimum entry point is typically 500 users or devices for commercial organizations.
How does an EA differ from other Microsoft volume licensing?
Unlike licensing agreements focusing on smaller scales or less customization, an EA is tailored for large-scale corporate environments, offering deeper discounts and comprehensive coverage.
What support is available with an Enterprise Agreement?
EAs often include enhanced support options, including 24/7 technical support and dedicated account managers.
Are training and consultation included in an EA?
Organizations can access various training resources and expert consultations to maximize the value of their software investments.
How can an organization renew its Enterprise Agreement?
As the agreement nears expiration, organizations can negotiate terms for renewal based on their current and future technology needs.
What are the payment options for an EA?
Payment plans are typically annual and can be adjusted based on the specific agreement and organizational needs.
Does an EA allow for software assurance benefits?
Software assurance is a key benefit, offering new releases, training, and support during the EA term.
How flexible is an EA in terms of adding new products?
Organizations can add new products throughout the lifecycle of the agreement, allowing adaptability to new business requirements.
What happens if an organization’s size changes during an EA?
EAs are flexible and can be adjusted if the number of users or devices changes significantly, ensuring that licensing remains aligned with actual usage.
How does an EA support remote and hybrid workplaces?
With cloud services and management tools options, an EA supports diverse working environments and ensures consistent access and security across locations.
