How to avoid IT price rises and renegotiate Microsoft licenses

O’Brien said IT managers need to do their homework on Microsoft licensing before entering re-negotiations – but it can be worth it.

She said Microsoft has already created 54 exceptions to its nine licensing models and 27 different licensing programs, and there’s no reason why your business model can’t potentially lead to another exception being granted.

“Never say never with Microsoft – if you have a defined business case on why you want something they might do it,” said O’Brien.

“The 54 exceptions came about because people did things with Microsoft technology that Microsoft did not see. If you run Microsoft tools in different scenarios to what Microsoft offer, build a business case around it and ask for an exception.

“They may not agree to it but you may get some concessions to make the existing licensing model cheaper,” said O’Brien.

She also said becoming a reference account for Microsoft was a way to get further discounts. However, threatening to move to an alternative productivity suite to get cheaper Office licenses isn’t a viable strategy ‘because Microsoft don’t view any alternative on the desktop as a competitive threat’.

“You can’t use it as a leverage point,” said O’Brien.

To Microsoft’s credit, they are one of several IT vendors to offer new finance packages on their kit.

Their offer is zero percent interest over 36 months for new purchasers of selected Microsoft Dynamics ERP and CRM software. It’s valid until mid- March to approved customers on purchases between $30,000 and $1.5 million.

The minimum purchase price can be made up of both approved software and partner services, but only the software component gets the zero percent financing, a Microsoft spokesperson confirmed to iTnews.

HP this week also announced globally it will offer zero percent lease financing for qualifying customers of its business technology optimisation and information management software.

Steve Dixon, A/NZ managing director at Riverbed, told iTnews that Aussie IT managers are getting the message on price increases and are negotiating harder for the best deals.

“Desperate vendors are also trying to slash their prices to get revenue,” said Dixon.