Microsoft’s already complicated license contract renewal process becomes even more complex with the promised additional 3% discount if you renew on time. This clause was created because it is important to Microsoft that contracts are renewed on time.
But renewing on time actually means that your 3% discount is preserved. Rather, we see this as a penalty by Microsoft on the negotiated discount, if renewals have not been made on time. If the license contract is renewed too late, Microsoft threatens to deduct this 3%. This, of course, cannot be the intention! We help you to realize the best prices during your contract renewal.
The on-time clause does not apply to Frameworks. If you are not using a Framework agreement, you do need to take into account this new “on-time renewal” rule.
Microsoft provides the following statement on this matter: “Timely renewal ensures continuous license coverage and uninterrupted availability of your services. A renewal agreement is considered timely when Microsoft Operations receives a completed Program Signature Form and all required Purchase Order numbers no later than the expiration date of your current enrollment.”
“This renewal proposal is valid until the expiration date of your current enrollment. If the renewal agreement is signed and the ‘Purchase Order’ is submitted to Microsoft’s processing center after the expiration date, the negotiated overall discount on this agreement will be reduced by at least 3 percent.”
Some licensing rules and contract renewals are actually made relatively difficult by Microsoft. Complexity is exactly what our consultants like to make simple for you! We have experience with software renewals for various applications and combinations, both in terms of number of users, pricing models and contract types.
Curious how Blackbelt XP can help you achieve that 3% discount? Contact us.