3 Latest Microsoft Enterprise Sales Tactics You Should Look Out For.

Software licensing practices can be sued to take advantage of customers, something that has been done for decades. In 2008, during the global financial crisis, many companies resorted to tactics like pushing customers to using more software than needed or bundling licenses. While one would hope that this is a practice that would die out over time, history has a tendency to repeat itself and Microsoft is one of the repeat offenders.

As the world currently faces another global recession, Microsoft continues pushing customers into buying more software than they need. Each of the company’s products, from Microsoft 365 to add-on licenses for Teams and Viva, are marketed as essential tools to building a successful modern business. The truth is many companies may not need all these products to be successful.

The features and functionality may act as bloat and cause issues with their internal processes. Microsoft is trying to sell a product under the guise of aiding businesses and adding deals and bundles to sweeten the deal, but the truth is they are trying to make you dependent on their services and take your money.

Veterans in the industry may recognize the tactics and tricks on display, but nobody is perfect. Here are a few things to look out for.

• Upgrades and Renewals
  Microsoft has made a name for themselves when it comes to pushing upgrades and renewals aggressively. The company has many different tactics to bring customers into the fold and upgrade them to newer license versions or renew their licenses even if they don’t need it. These discounts may not be worth it in the long term if your company doesn’t need all the features provided, so take care during the renewal process to weight the benefits against the features on display.
• Complex Licensing Models
  Microsoft’s licensing models can be incredibly complex, to such an extent that you may not fully know what you’re paying for. An example might be that Microsoft charges based on the number of users, devices, and servers, but the pricing will vary depending on the product and license type. Keep a weathered eye out for complex licenses and never be afraid to ask too many questions. When it comes to your money, too many questions are a small price to pay.
• Bundled Licenses
  Microsoft bundles licenses together to force customers to buy more than they need. This isn’t something revolutionary that they invented, but it’s a tactic that works. For example, Microsoft 365 E5 includes various features like Teams, SharePoint, and Exchange Online. Many companies may only find use for Teams and SharePoint, or Teams exclusively. You soon realize that what you thought was a good deal was actually a form of entrapment that is designed to make you feel as though you are getting your money’s worth. “Don’t worry, you’ll find a use for the other services eventually as your business grows.” While the sentiment is nice, it rarely pans out that way.

Everyone is looking for a deal. With the economy in a downturn, deals are hard to pass up. However, Microsoft forces customers to buy more subscriptions than needed many months before needing the licenses. This effectively eliminates the deal customers think they are receiving. The pressure for Microsoft to sell more software is understandable, it’s part of what they do. However, your job is to avoid poor deals and invest in products that will provide you with complete lasting benefits.

Proactively controlling your software spend can protect your company’s bottom line and help you avoid falling victim to Microsoft’s questionable licensing practices. The deal may seem great up front, but the fine print always tells a different story. Stay vigilant and stay safe.