M365 E3 or E5). I suppose if you ordered a similar number of on-premise License & Software Assurance products of Office, Windows and the Enterprise CAL, Microsoft might consider that you have met this requirement – yet no one will ever buy this way. Let’s say you start your agreement with 10,000 users and add 2,000 in Year 1. You can never now go below 12,000 users for the Enterprise-wide subscription products (e.g. The language in Section 1 would have us believe that it’s possible to reduce quantities, but the reality is that this scenario is extremely, extremely rare. Invoices will be adjusted to reflect any reductions in Subscription Licenses at the true-up order Enrollment anniversary date and effective as of such date. If the License count is reduced to zero, then Enrolled Affiliate’s use of the applicable Subscription License will be cancelled. Step-up Licenses and add-on Subscription Licenses do not count towards this total count.Ģ) For Enterprise Online Services in a given Product pool that are not a part of an Enterprise-wide purchase, Licenses can be reduced as long as the initial order minimum requirements are maintained.ģ) For Additional Products available as Subscription Licenses, Enrolled Affiliate may reduce the Licenses. Enrolled Affiliate may reduce the quantity of Subscription Licenses at the Enrollment anniversary date on a prospective basis if permitted in the Product Terms, as follows:ġ) For Subscription Licenses that are part of an Enterprise-wide purchase, Licenses may be reduced if the total quantity of Licenses and Software Assurance for an applicable group meets or exceeds the quantity of Qualified Devices or Qualified Users (if ordering user-based Licenses) identified on the Product Selection Form, and includes any additional Qualified Devices and Qualified Users added in any prior true-up orders. This language can be found in Section 2g(iv), Order Requirements/True-Up Requirements/Subscription License Reductions: (iv) Subscription License reductions. Let’s take a look at the language in the Enterprise Enrollment. Microsoft does not offer a true-down for its on-premise products and, despite many claims to the contrary, you cannot reduce the subscription counts for Enterprise products. Microsoft is all about growth, and absent any previously agreed concession that permits you to reduce the quantities of the ordered products, you generally do not have the ability to submit a true-down for enterprise-wide purchases. But what happens if you need to reduce the quantities of ordered products? Does a Microsoft true-down exist? Microsoft True-Down Myths and Realities You are required to submit an order for any incremental subscription products in the month in which you first use the incremental copies. Microsoft also provides the monthly cost of any subscription products in the Future Pricing table. A submitted true-up order pays for the license use for the remainder of the agreement term. For on-premise products, Microsoft provides annual pricing – the amount due at the Year 1 true-up, Year 2 true-up, and the final Year 3 true-up due at the end of the enrollment. When you sign your EA, Microsoft provides a “Future Pricing” table on your Customer Price Sheet that applies to true-up quantities. One of the benefits of the Enterprise Agreement program is that you are able to begin using incremental copies of the on-premise products at any time, only reporting the true-up at the first, second and third agreement anniversary dates. Customers are required to submit a true-up at least once annually. There are a number of ways to accomplish this, the easiest of which is to simply submit a true-up. Microsoft’s Enterprise Agreement program makes it easy for customers to add new products to their EA over the enrollment term. Let’s start with a quick refresh of the vendor’s true-up process for the purposes of comparison. In this post, I’d like to bring some clarity to the topic and discuss if and when it’s possible to reduce license commitments during the term of your EA enrollment. Most enterprise Microsoft customers are familiar with true-ups, but what about the inverse? Is a Microsoft true-down even an option? As is usually the case with Microsoft, the truth is in the fine print and the confusion in the grey area.
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