Q2 2020 MSFT Premier/Unified Support – Research Analysts Report

Q2 2020 MSFT PREMIER/UNIFIED SUPPORT – RESEARCH ANALYSTS REPORT

Microsoft Enterprise Support Pricing

MS Unified Support

• Unified Support Performance Plan – $175k minimum.
• Charged as a percentage of your spending: Server 12%, User 10%, Cloud 12%

See how Microsoft’s Unified Support cost is calculated »

MS Premier Support

• The biggest sticking point for enterprise MSFT Premier Support agreements is the Technical Account Manager (TAM) pricing and quality of service.

Support for Products Without Software Assurance (SA)

• 300-400% increase in support costs punishing enterprises without SA.

5 Year Lookback for License Only Purchases

• Particularly harsh for enterprises who have recently moved to SA/online.

3 Year Unified Pricing Forecast – 57% Sticker Shock

The transition from Premier to Unified will cost somewhere between 25-100% for most Microsoft enterprise customers. As recommended by all 3 analyst groups, ask to spread the transition cost over 2-4 years.

Microsoft claims a cap on year over year (YOY) Unified support cost increase of 10%.

With an average 50% transition cost to Unified cost + 7% YOY Unified cost increases, enterprises can expect a 19% increase per year, over the next 3 years for Microsoft Unified support.

In addition, a sleeping giant is stirring that most organizations are overlooking. Microsoft Cloud consumption. This is the number 1 performance metric at Microsoft. It is also a key variable in your Unified cost metric. As you consume more cloud services from Microsoft, your Unified Support costs increase. With Microsoft’s mantra to increase your cloud consumption year over year, there is high likelihood your Unified Support costs will surpass 57%.

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Software Assurance Benefits (SAB)

Enterprises earn SAB by purchasing Microsoft licenses.

You get a SAB support incident for every $20k server/CAL purchased and $200k IW/Client purchased.

SAB support incidents are valid for the length of the Premier/Unified support contract.

You can convert SAB support incidents to Premier support hours (PRS or DSE) or Unified support credits.

SAB incident value = $1,383 USD on Unified support

The number of SAB available will vary significantly from year to year.

See all the Microsoft Software Assurance Benefit (SAB) changes for 2020 thru 2022 »

Audit Your Unified Support Bill

• Unified Support cost is made up of all Volume Licensing agreement used to buy Microsoft product licenses and cloud services (online).
• For Unified Performance Plan your bill is a programmatic percentage of: Server 12%, User 10%, Cloud (Dynamics, Azure) 12%
• Break out and itemize your Unified support pricing into base and add-ons.
• Add-ons include: proactive credits and service delivery management extended
• Software Assurance Benefits (SAB) credits – make sure the Unified bill notes how many SAB PRS incidents you are converting.
• SAB credits can be unpredictable. Ask your MSFT Unified sales rep for a forecast.

Minimize Your Unified Support Cost Increase

Move your Office 365 licenses to a Microsoft Cloud Service Provider (CSP) to negotiate a reduced cost per seat.

Ask your Microsoft Unified sales rep to spread your 25-100% price increase over multiple years (2-5 years).

Azure support is your biggest lever with Microsoft. Know the marketplace and Azure competitors; Azure support vs Amazon AWS vs Google GCP.

Explore alternatives to MS Unified support including pure plays, VARs, Sis and CSPs.

Azure vs. AWS vs. GCP Support Costs

Microsoft Azure – 10% of any spend. Account management included. 30 min response for critical.

Amazon AWS – 10% of first $150k. 7% of next $350k. 5% of next $500k. 3% over $1M. Account management included. 15 min respones for critical.

Google GCP – 9% of first $150k. 7% of next $350k. 5% of next $500k. 3% over $1M. Account management included. 15 min response for critical.

Alternatives to Microsoft Unified Support

Pure plays – Offer full replacement of Premier/Unified Support. Example, US Cloud.

Value Added Reseller (VAR) – Software resellers offering helpdesk services.

System Integrators (SI) – Large system integrators offering limited support services.

MSFT Cloud Solution Provider (CSP) – Offering discounted Office 365 and offshore support.