Optimising Microsoft EA Renewals & True-Ups with Enhanced FinOps and SAM Collaboration

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Microsoft Enterprise Agreement (EA) renewals and true-up cycles are pivotal moments for optimising software spend, managing compliance, and aligning with technology goals. However, many organisations miss out on these strategic opportunities due to a common disconnect: FinOps (Financial Operations) and Software Asset Management (SAM) teams often work in isolation, leading to costly gaps in cost savings and risk management.

Integrating FinOps and SAM allows organisations to fully leverage each team’s strengths. FinOps excels in cloud cost management and multi-cloud governance, while SAM offers deep expertise in on-premises licensing, vendor negotiations, and compliance. Without this collaboration, Microsoft EA renewals can fall short, missing critical insights from both sides and creating exposure to unnecessary compliance risks and missed savings.

By working together, these teams can optimise resources, manage compliance effectively, and support a forward-looking technology strategy that benefits the entire organisation.

Bridging the Gap: A Collaborative Approach

To fully optimise Microsoft EA renewals and true-ups, organisations need a strategy that aligns the strengths of both FinOps and SAM teams. Here’s how each team’s unique capabilities contribute to this shared objective:

FinOps Capabilities in Microsoft EA Renewals

• Multi-cloud Insight: FinOps teams excel at managing cloud costs across multiple platforms, which is invaluable for organisations with hybrid or multi-cloud environments. This visibility prevents cloud resources from being overlooked during Microsoft EA renewal negotiations, enabling more accurate budgeting and the possible use of viable competitive alternatives.
• Real-Time Data: Access to real-time data allows FinOps to make dynamic decisions about cloud usage, uncovering potential savings before Microsoft EA renewal or true-up negotiations. This data is also crucial for identifying cost optimisation opportunities that can be locked into a new EA agreement.
• Cost Optimisation and Allocation: FinOps teams are skilled at optimising cloud expenditure through resource allocation, tagging, and rightsizing efforts. During Microsoft EA renewals, they can pinpoint where the organisation can save on cloud services, helping to avoid over-commitment to Azure or licenses to obtain BYOL rights.

Where FinOps Needs SAM’s Expertise

Despite their strengths, FinOps teams often face challenges in specific areas where SAM expertise is critical:

• On-Premises Licensing Knowledge: Understanding traditional licensing metrics, terms, and costs is essential in Microsoft EA renewals. SAM teams bring this knowledge, which is particularly important when leveraging BYOL and non-production licensing models.
• SaaS Use Rights and Compliance: SAM teams have a stronger grasp of licensing use rights, which helps ensure that SaaS and other related cloud services are compliant with contractual terms.
• Contract Negotiation and True-Up Support: Negotiating renewals and managing true-up terms requires familiarity with vendor-specific licensing structures and potential compliance pitfalls. SAM expertise enables contract negotiations to incorporate considerations for both cloud and on-premises assets.

Convergence & Integration

To enhance collaboration and make this integration successful, organisations should consider the following key best practices:

• Encourage Cross-Functional Collaboration: Regular meetings and shared goals between FinOps and SAM teams can foster a collaborative culture. Mandate that both teams are part of Microsoft EA renewal planning and discussions. This will enable organisations to break down silos and encourage knowledge sharing.
• Invest in Integrated Tools and Processes: Implementing DIY or off-the-shelf tools that provide visibility into both on-premises and cloud assets can help bridge the knowledge gap between FinOps and SAM. These tools allow both teams to monitor license usage, track costs, and report on compliance in a unified way.
• Establish Clear Accountability: Define each team’s responsibilities for Microsoft EA renewals and true-ups. For example, FinOps can focus on optimising cloud spend and forecasting, while SAM manages vendor relationships and enables compliance across licensing agreements.

Conclusion

As FinOps programs evolve, it’s clear that we are reaching a point where convergence of both disciplines is becoming a strategic imperative for organisations seeking to manage costs and risks associated with their Microsoft assets. Embracing this unified approach will not only help navigate the complexities of cloud and on-premises licensing but also pave the way for a more agile, cost-effective, and compliant Microsoft environment. This approach creates a strong foundation for more effective Enterprise Agreement management and improved deal-making with Microsoft and its reseller network.

With deep expertise in both FinOps and SAM, Version 1 is uniquely positioned to help customers leverage the benefits of both disciplines.

Contact us to learn more.