An introduction to a consulting practise nick named "Project Liberate" - How to get a better deal with Microsoft through deeper insight.

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3. “I see Microsoft as a licensing company first, and
second as a technology company. It's not that
they don't have good technology, but they're
driven by, consumed by, licensing.”
- Daryl Ullman, co-founder and managing director of the Emerset Consulting Group

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“Clients that go into their Microsoft software negotiations prepared with good asset management will
make more informed licensing decisions and will spend less than those that do not.”
“Start the negotiation process at least three months (and preferably six months) prior to the
expiration of your current agreement.”
“In conjunction with demand management planning, create realistic financial scenarios for licensing
costs that span at least six years (or, alternatively, two software refresh cycles) to determine the
financial impact of any licensing decision you may make. This is particularly important when moving
to cloud or subscription services.”

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• Use perpetual licensing
entitlement as leverage to
walk away from SA.
• Perform a careful cost
benefit analysis on SA
benefits.
• Profile users to rightsize
license fees.
• Introduce competition to
improve your position.
• Leverage global pricing.
- Gartner, May 2013

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Cost
Time
Trend
“Why is our spend on Microsoft
software not showing the same
downward trend we expect from
all our other suppliers?”
- CFO

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1. Every object in a state of uniform motion
tends to remain in that state of motion
unless an external force is applied to it.
2. The acceleration a of a body is parallel and
directly proportional to the net force acting
on it, is in the direction of the net force, and
is inversely proportional to the mass of the
body.
3. For every action there is an equal and
opposite reaction.

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"Microsoft is pushing you to make choices long
before you know what their impact will be. This is
gambling, and you don't have to do it. Use the
licenses you bought without paying Microsoft
more for it."
- Paul DeGroot, Analyst & Principal Consultant at Pica Communications

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Release date: October 26. 2012
Prices starting at $199 ($69.99 - 3 month
promotion).
Upgrades starting from $14.99 (June 2.
entitlement available for a limited period).
Versions:
Windows 8 RT (ARM tablets).
Windows 8 (consumers).
Windows 8 Professional (corp. and OEM).
Windows 8 Enterprise (enterprise w. SA)

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What users want What IT wants to deliver
”53% of the employees
use their own device at
work”
- Forrester
”By 2015 employees will be
expected to bring their own
devices”
- Gartner
”Companies hire
employees, but
people show up”

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Source: Alessandro Perilli in an interview with Version 2 at Virtual
Day conference, Copenhagen Denmark, May 2010
• ”The price is still too high”
• ”There are still many issues to be addressed.
Although many vendors have been pushing VDI
for 2-3Y, it has not become mainstream.”
• ”So many components are required that the
investment in virtualization software and better
network is significant. The licensing cost
especially to Microsoft is very high, when you
use VDI. Microsoft does not have VDI friendly
licensing agreements.”
• ”VDI may reach mainstream sometime in the
future. But it will not happen now.”

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Source: http://blogs.forrester.com/print/david_johnson/13-04-01-has_vdi_peaked_a_change_in_the_adoption_drivers_sheds_new_light_and_new_life

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 Advanced SharePoint functionality
 Electronic Meetings
 Telephony integration
 Unified Communication
 Exchange Archiving & Legal hold
 Security
 Monitoring

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• Low per server cost. High per user cost.
• BI and Standard Edition only.
• Beneficial when deploying a large number of
servers or when requiring BI Edition.
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• No server license – just a per Core charge.
• Minimum of 4 Cores per server.
• Enterprise and Standard Edition only.
• Beneficial when consolidating on Standard Edition.
Server + CAL Processor Core

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28. “Despite the increased media attention, we do not believe
that customer migration to Office 365 has been that
significant.
We believe email in the cloud is the primary driver for
Office 365, but we estimate that cloud email will only
constitute 10% of the email market by the end of 2014.
Additionally, of that 10%, we estimate that 75% of those
are organizations with less than 750 desktops.”
- Gartner, in response to Microsoft claims of 25% enterprise adoption of Office 365, May 2013.

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ASSUMPTIONS Your input/data in bold
Economy COMMENT
Currency DKK
Estimatet LAR discount on Select acquisitions % 12,0%
Software frequencies
PC's that are not renewed before 0%
How many of your users has the need for Office Professional (Office Communicator)? (%) 100%
In use
Exchange (%) Yes 100%
SharePoint (%) Yes 100%
System Center Configuration Manager (SCCM) - SMS (%) Yes 100%
SQL Server CAL (%) No 100%
Remote Desktop Services - Terminal Server (%) No 100%
Lync - Office Communication Server (%) No 100%
Windows Rights Management (%) 0%
Systems Center Operations Management (SCOM) - MOM (%) 0%
Forefront Security Suite (%) 0%
Deployment history 2005 2006 2007 2008 2009 2010 2011
EA initially 33.000 33.000 33.000 33.000 33.000 33.000 33.000
EA price 1.182 1.182 1.182 1.182 1.182 1.182 1.182
True Up / New users - - - - - - -
True Up price - - - - - - -
Deployment projection 2012 2013 2014 2015 2016 2017 2018
Users 33.000 33.000 33.000 33.000 33.000 33.000 33.000
EA price 1.182 1.182 1.182 1.182 1.182 1.182 1.182
True Up Y/Y 0% 0% 0% 0% 0% 0% 0% Dynamic Growth Y/Y
Incl. CAL in partial SA

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Notice: Numbers are client side only. Same exercise can be made on the server side releasing 20-30% additional cost savings.
SUMMARY
HISTORICAL ANALYSIS 2005 2006 2007 2008 2009 2010 2011 TOTAL Δ%
Historical EA - - 59.641.317 59.641.317 59.641.317 51.534.321 51.534.321 281.992.595
Select alternative - - - - - - 66.496.795 66.496.795 76%
Teoretical Additional Cost 215.495.800
BASIC SCENARIOS
ENTERPRISE AGREEMENT 2012 2013 2014 2015 2016 2017 2018 TOTAL ΔEA Δ%
New Enterprise Agreement 50.419.026 50.419.026 50.419.026 50.094.000 50.094.000 50.094.000 50.094.000 351.633.078 -
EA on Core CAL only 7.986.000 7.986.000 38.264.942 7.986.000 7.986.000 7.986.000 69.924.400 148.119.342 (203.513.736) -58%
SELECT 2012 2013 2014 2015 2016 2017 2018 TOTAL ΔEA Δ%
Pure Select - - 33.795.452 4.966.626 - - 86.613.754 125.375.831 (226.257.247) -64%
Office update postponed - - 33.795.452 4.966.626 - - 24.675.354 63.437.432 (288.195.646) -82%
ENTERPRISE SCENARIOS
ENTERPRISE DESKTOP 2012 2013 2014 2015 2016 2017 2018 TOTAL ΔEEA Δ%
Enterprise Agreement Step-Up 70.290.000 70.290.000 70.290.000 70.290.000 70.290.000 70.290.000 70.290.000 492.030.000 - 0%
Enterprise Desktop Select - - 33.795.452 4.966.626 - - 111.289.108 150.051.185 (341.978.815) -70%

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- ”If we are to save
money in this scale,
we need to do things
very differently.”
- ”So?”

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“Persistence wins the day.”
“The savings potential is very real.”
“You can get considerable concessions leveraging licensing insight.”
“Standard T&C’s are not applicable in practice.”
“Compliance is not primarily a counting effort, but a question of documenting the compliance process.”
“Microsoft will play “the rental card”.”
“Microsoft will go a long way to keep their offering together (Full Desktop).”
“Microsoft will be even more focused on securing your business if you show insight.”
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”We are in the business of
making calculated risks”
- CEO in a large enterprise organization

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