Top 5 Risks of Renewing Microsoft Unified Support in 2025.

Enterprises need to acknowledge the five significant risks associated with Microsoft Unified Support in 2025. They need to either accept these risks and renew, build out their own support teams, or mitigate them by partnering with a viable third-party support provider.

As organizations approach the renewal of their Microsoft Unified Support contracts in 2025, it’s crucial to understand the potential pitfalls that come with it. The five primary risks—pricing unpredictability, quality degradation, support sovereignty, monopoly abuse, and the newly emerging risk of contractual rigidity—can significantly impact your enterprise’s technology budgets, service quality, security compliance, and negotiation leverage. 

Impact on: Chief Technology Officer (CTO) 

One of the foremost concerns is the unpredictability of pricing associated with Microsoft Unified Support. CTOs are tasked with accurately forecasting cloud consumption while avoiding unexpected cost increases. Although the allure of unlimited support across all Microsoft products seems beneficial, it often leads to substantial cost hikes over time. 

• Significant Cost Increases: Projections indicate that Unified Support could cost two to five times more than the previous Premier model over the next five years. 
• Enterprise Agreement (EA) Impact: Most EAs are seeing a 6-8% increase upon renewal. 
• Retired Discounts: The retirement of Software Assurance Benefits (SAB) credits and SA discounts in February 2022 has removed previously available cost offsets. 

Mitigation Strategy 

To tackle this issue, it’s essential to conduct a thorough audit of your renewal proposal at least three months before the renewal date: 

1. Request Detailed Pricing Data: Use your audit rights to obtain detailed information in spreadsheet format, including contract numbers, product lists, annual costs, and historical consumption over the past 3-5 years.
2. Forecast Future Consumption: Input anticipated growth rates for various products to project costs over the next five years.
3. Adjust for Retired Discounts: Exclude any retired discounts to ensure accurate forecasting.
4. Explore Cost-Saving Measures: Consider rightsizing your support needs or negotiating for more favorable terms based on your projected usage. 

Impact on: Chief Information Officer (CIO) 

The quality-of-service delivery is another significant risk. As more clients utilize the “as-needed” ticketing system, Microsoft’s support services are struggling to keep up with the increased demand. This strain is compounded by several factors: 

• Outsourced Support: A substantial portion of support is outsourced overseas, which can lead to communication challenges and longer resolution times. 
• Transition from TAMs to CSAMs: The replacement of Technical Account Managers (TAMs) with Customer Success Account Managers (CSAMs) has led to a loss of experienced personnel. CSAMs typically have about half the experience of TAMs, affecting the depth of support. 
• Lack of SLAs: Microsoft’s lack of financially backed Service Level Agreements means there are no contractual obligations around response times or resolutions. 

Mitigation Strategy 

To mitigate quality concerns: 

• Build Internal Expertise: Develop your own helpdesk and Microsoft technology support teams to handle more issues internally, reducing reliance on external support.
• Utilize External Providers: Leverage Cloud Solution Providers (CSPs), Licensing Solution Providers (LSPs), or Managed Service Providers (MSPs) for additional support, especially for Level 2 and Level 3 issues.
• Partner with Third-Party Support Providers: Consider reputable third-party providers that offer financially backed SLAs and experienced support staff. Testing their services beforehand can ensure they meet your enterprise’s needs. 

Impact on: Chief Information Security Officer (CISO)

For organizations in sectors like federal agencies, defense contracting, and aerospace, the outsourcing of support to foreign nationals introduces significant security risks, including data breaches and espionage. Microsoft’s inability to contractually guarantee that all support will be handled by U.S. citizens poses compliance issues.

“Inserting foreign nationals into the country’s technical support supply chain is irresponsible and poses a needless risk to our intellectual property and national security.”
— Robert E. LaMear IV, CEO, US Cloud

Mitigation Strategy

To address support sovereignty concerns:

• Choose Sovereign Support Providers: Partner with support providers that guarantee all support is delivered by U.S. citizens, with data remaining within the United States.
• Contractual Guarantees: Ensure that your provider offers contractual commitments to support sovereignty, which is essential for compliance.
• Benefit from Enhanced Security: Providers like US Cloud not only offer compliance but also faster response times and financially backed SLAs.

Success Stories

• S. State Department: Saved 38% on support costs.
• S. Department of Labor: Achieved a 42% cost reduction.
• Environmental Protection Agency: Saved 53% and $7.5 million over five years.

Impact on: CIO, CTO, IT Sourcing & Procurement

Many organizations feel that Microsoft’s dominant market position leads to monopoly abuse, limiting options and leverage in negotiations.

• Aggressive Sales Tactics: Reports of “take it or leave it” attitudes during renewals.
• Vendor Lock-In: Limited awareness of alternative support options results in unfavorable multi-year contracts.
• Increased Costs for Less Service: The shift from Premier to Unified Support has resulted in higher costs and reduced personalized service.

Mitigation Strategy

To combat monopoly abuse:

• Identify Alternative Providers: Research and consider third-party support options to introduce competition.
• Enhance Negotiation Leverage: Use competitive bids to negotiate better terms with Microsoft.
• Vendor Vetting: Ensure any alternative providers meet your service quality and compliance requirements.

Impact on: IT Directors, CIOs, CTOs

A new and increasingly significant risk is the limited customization and flexibility offered by Microsoft Unified Support. As enterprises evolve, their support needs become more specialized, requiring tailored solutions that Unified Support may not adequately provide.

• One-Size-Fits-All Approach: Microsoft’s standardized support packages may not align with the unique needs of your organization.
• Inflexible Terms: Rigid contract terms make it challenging to adjust support levels or services mid-term, which can hinder agility.
• Delayed Adaptation: Slow response to changing business environments or technological advancements can impede progress.

Mitigation Strategy

To address the lack of flexibility:

• Assess Specific Needs: Conduct a thorough assessment of your organization’s support requirements, identifying areas where customization is necessary.
• Negotiate Custom Terms: Attempt to negotiate terms with Microsoft that allow for greater flexibility, such as adjustable support levels or modular services.
• Explore Third-Party Solutions: Third-party support providers often offer more customizable packages tailored to your specific needs, allowing for adjustments as your organization evolves.
• Implement Hybrid Support Models: Consider a combination of internal support and third-party services to create a more flexible and responsive support structure.

Navigating the renewal of Microsoft Unified Support in 2025 presents several risks that can impact your organization’s finances, service quality, security, flexibility, and bargaining power. By understanding these risks and proactively implementing mitigation strategies, enterprises can make more informed decisions.

Whether it’s conducting detailed cost analyses, enhancing internal support capabilities, ensuring compliance through sovereign support, leveraging third-party providers to increase negotiation power, or seeking more flexible support arrangements, acting now can lead to better outcomes for your organization.