Microsoft Enterprise Agreement (EA)

A Microsoft Enterprise Agreement (EA) is a volume licensing program that offers large organizations the flexibility to purchase and manage Microsoft software and cloud services under a single agreement.

• Context:
  • It can (typically) provide significant cost savings for organizations with 500 or more users or devices.
  • It can (often) be used to access the latest versions of cloud and on-premises software (e.g., through the inclusion of MS Software Assurance).
  • It can provide tiered pricing based on the number of users or devices licensed under the agreement.
  • It can range from being a comprehensive licensing agreement for cloud services to on-premises software licenses, or a mix of both.
  • It can simplify license management by providing predictable payments over a three-year period with an option to renew.
  • It can offer flexible payment options, such as spreading costs over three years or opting for subscription-based licensing.
  • It can include additional benefits like 24x7 support, planning services, and training for IT professionals and end users.
  • It can require annual "true-up" adjustments to account for changes in the number of licensed devices or users.
  • It can have variations, such as:
    • Microsoft Azure Enterprise Agreement, which provides discounted rates and flexibility for managing Azure services.
    • Server and Cloud Enrollment (SCE), which is focused on licensing for server products and cloud services.
    • Enterprise Agreement Subscription (EAS), which is similar to the traditional EA but provides subscription-based licensing rather than perpetual ownership.
  • It can be governed by both the Microsoft Business and Services Agreement (MBSA) and product-specific terms.
  • It can be suitable for organizations undergoing digital transformation by providing access to MS Cloud Services (like Microsoft 365 and Azure services).
  • ...
• Example(s):
  • Microsoft EA, 1999 – the initial launch of the Enterprise Agreement as a way for organizations to purchase Microsoft software licenses and spread costs over three years.
  • Microsoft EA, 2011 – marked the introduction of Office 365 to the EA, allowing cloud services to be included alongside traditional software licenses.
  • Microsoft EA, 2016 – introduced an increase in the minimum requirement to 500 users or devices for commercial customers, reflecting Microsoft's shift towards larger organizations.
  • Microsoft EA, 2020 – saw increased integration with Azure services and more flexible cloud licensing options through the Server and Cloud Enrollment.
  • ...
• Counter-Example(s):
  • Microsoft Open Licenses, which are geared towards smaller organizations with fewer than 500 users or devices.
  • Microsoft Cloud Agreement, which is a transactional licensing agreement suitable for commercial and government organizations outsourcing cloud service management.
  • Microsoft Customer Agreement, which offers a more flexible, pay-as-you-go licensing model for organizations of any size focused on cloud services.
  • Google Cloud Licensing, which offers a pay-as-you-go model and flexible contract terms instead of long-term enterprise agreements, making it more suitable for organizations with varying cloud needs or those that prefer not to commit to large-scale licensing.
  • AWS Enterprise Discount Program (EDP), which provides discounts for large cloud consumption but does not operate under a traditional enterprise agreement structure. Instead, AWS offers a customized, flexible agreement based on actual usage, without the same fixed-term commitment as Microsoft's EA.
• See: Software Assurance, Microsoft Open License, Microsoft Cloud Agreement

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References

2024

• Perplexity
  • Microsoft Enterprise Agreements (EAs) have been a significant part of Microsoft's licensing strategy for large organizations since the late 1990s. Here's a brief history of their evolution:
    1. Introduction: Enterprise Agreements were introduced in the late 1990s as a way for large organizations to purchase Microsoft software licenses and services at scale.
    2. Initial Structure: Enterprise Agreements were designed as three-year contracts covering software licensing and updates for client systems. This structure allowed organizations to spread payments over the contract period rather than making a large upfront investment.
    3. Volume Licensing: Enterprise Agreements built upon Microsoft's existing volume licensing programs, offering tiered pricing based on the number of computers or users being licensed.
    4. Software Assurance: Enterprise Agreements included Software Assurance, which provided benefits such as access to new versions, deployment planning services, and training.
    5. Cloud Integration: As Microsoft expanded into cloud services, Enterprise Agreements evolved to include options for licensing both on-premises software and cloud services like Office 365 and Azure.
    6. Subscription Option: Microsoft introduced the Enterprise Agreement Subscription (EAS), allowing organizations to subscribe to the rights to use Microsoft products and services rather than owning them outright.
    7. Minimum Requirements: In 2016, Microsoft increased the minimum requirement for Enterprise Agreements from 250 to 500 users or devices for commercial customers, while keeping it at 250 for public sector customers.
    8. True-Up Process: Microsoft implemented an annual True-Up Process, allowing organizations to adjust their licenses based on actual usage throughout the year.
    9. Server and Cloud Enrollment: Microsoft introduced specialized enrollments like the Server and Cloud Enrollment to provide additional benefits for specific technology areas.
    10. Transition to Modern Commerce: In recent years, Microsoft has been shifting towards more flexible licensing models, such as the Microsoft Customer Agreement, to adapt to changing customer needs and the increasing importance of cloud services.
  • Citations:

[1] https://www.schneider.im/faq/microsoft-enterprise-agreement/
[2] https://www.microsoft.com/en-us/licensing/licensing-programs/enterprise
[3] https://en.wikipedia.org/wiki/Microsoft_Enterprise_Agreement
[4] https://www.slideshare.net/slideshow/the-microsoft-enterprise-agreement-ea-explainedpdf/256998268
[5] https://a16z.com/hardcore-software-when-microsoft-office-went-enterprise/ 

2024

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Microsoft_Enterprise_Agreement Retrieved:2024-6-21.
  • EA/SA (Enterprise Agreement/Software Assurance) is a volume licensing package offered by Microsoft. It primarily targets large organizations which have 500 or more personal computers. The minimum quantity was increased from 250 to 500 on 1 July 2016, but it remains at 250 for public sector customers. Other programs, including Open Value, Open License and Select License, are geared towards smaller organizations.

    The Enterprise Agreement, whose price is tiered to the number of computers or users being licensed, is a three-year contract which covers all software licensing and updates for one client system. An option is given at contract termination to renew for one or three additional years.

    Software products licensed under the contract include Windows 10, Microsoft Office and the core Client Access Licenses for Windows Server, Exchange, System Center and SharePoint, which allow the computer to legally access Microsoft servers over a network.

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