As procurement head and a senior executive, we understand that managing licensing agreements can be complex, time consuming and almost require a PHD to understand all the nuances and edge cases. As Microsoft moves away from Enterprise Agreements and towards subscription-based agreements, we have collated the top 10 areas you must focus on whenever you are looking for a CSP agreement so that you have the best experience. This blog aims to highlight the top 10 areas you should prioritize when entering into a CSP agreement. By understanding these critical aspects, you can ensure that your organization leverages the full potential of cloud services while maintaining control over costs, compliance, and performance.
From pricing models and service level agreements (SLAs) to security measures and support options, each of these areas plays a vital role in the success of your cloud strategy. This blog will provide an in-depth overview of these key focus points, offering practical insights and tips to help you make informed decisions. Whether you're new to CSP agreements or looking to optimize your existing contract, this guide will equip you with the knowledge you need to navigate the cloud landscape effectively.
- Understand your current agreements - Including Bill of Materials (BOM) before diving into negotiations. Ensure you're intimately familiar with your existing agreement, know your usage patterns, current and future committed spend, and any custom terms or discounts.
- Assess your organization's needs - Determine if your cloud consumption has increased or decreased? Are there new workloads or services required? Review your current needs and future projections to align with your renewal strategy.
- Review the market - Don't stick with one CSP out of habit. Explore what other providers offer. They might have more competitive pricing, better-suited services, or improved terms for long-term commitments.
- Negotiate Terms - Leverage your organization's size and commitment to negotiate favorable terms. Consider discounts on cloud services, free credits, reserved instance savings plans, and custom pricing models, if an when available. Also use services and support to converge on the best terms and conditions.
- Discuss Service Level Agreements (SLAs) - Ensure your CSP meets your expected uptime, response times, and other critical service levels. If not, use this opportunity to renegotiate or consider alternative providers.
- Review support and managed Services - Evaluate the level of support offered by your CSP. Consider upgrading to premium support or exploring managed services if it aligns with your organization's needs and budget.
- Assess Data Migration Costs - If you're considering switching CSPs, factor in data migration costs. Some providers offer free or discounted migrations, while others may charge significant fees. If you are just transferring licenses, then there won’t be challenges in movement and migration is stress-free.
- Review Security and Compliance - Ensure your CSP maintains robust security measures and complies with relevant industry standards (e.g., HIPAA, GDPR). Discuss any additional security features you might need, such as advanced threat detection or identity management services.
- Evaluate Long-term strategic Fit - Consider each CSP's product roadmap, strategic vision, and alignment with your organization's goals. A provider that understands and supports your long-term objectives is crucial for a successful partnership in the long term. While you may be tempted to go to the lowest cost vendor, we would encourage you to drive more strategic conversations outside of the agreement as well.
- Legal review and finalization - Once you've agreed on terms, have your legal team review the final contract. Ensure it aligns with your organization's needs and complies with all relevant laws and regulations before signing.
In conclusion, focusing on these top 10 areas in your CSP agreement can significantly enhance your organization's cloud experience. By paying attention to pricing, SLAs, security, and other critical factors, you can ensure that your CSP agreement aligns with your business objectives and delivers the desired outcomes.
Contact our Microsoft team of cloud experts today at Micrsoft@Coforge.com to discuss your specific needs and get personalized advice. We're here to help you navigate the complexities of CSP agreements and ensure you get the most out of your cloud investment.
Let's work together to achieve your cloud goals!
