Unlock Negotiation Power: Split Microsoft Enterprise Agreement Renewal.

Microsoft’s strategy of aligning contract termination dates for Enterprise Agreements (EAs) and Unified Support agreements may seem convenient at first glance. However, this practice often traps enterprises in unfavorable renewal cycles that benefit Microsoft far more than its customers. By coterminating these agreements, businesses like yours lose critical leverage in negotiations, face higher costs, and limit their ability to explore alternative support options.

Let’s explore why coterminating your Microsoft Customer Agreement for Enterprise (MCA-E) with Unified Support is a mistake—and how US Cloud can help you regain control over your IT strategy.

Coterminous contracts are often marketed by Microsoft as a convenient solution for enterprises. By aligning the expiration dates of your EA and Unified Support agreements, Microsoft suggests that you’ll simplify the renewal process and streamline negotiations. This approach may sound appealing to busy IT leaders juggling multiple priorities, but the reality is far less advantageous for customers. This “convenience” comes with limited flexibility, negotiating power, and a steeper price point.

Split contracts outperform in all benefit categories.

Microsoft’s primary motivation for encouraging coterminous contracts is control. When both agreements expire simultaneously, customers are forced to renew them together or risk losing access to critical licensing and support services. This tactic reduces the customer’s ability to negotiate terms independently and locks them into Microsoft’s ecosystem—often at a higher cost.

As Gartner forecasts a 9.8% growth in worldwide IT spending for 2025, a significant portion of this increase stems from enterprises feeling pressured to maintain uninterrupted service, limiting their ability to explore alternatives and potentially leading to higher costs in the long run.

Projected spike in IT spending growth for 2025.

It’s clear that coterminous contracts appear convenient, but more often than not, they come with significant downsides that can impact your organization’s financial planning and operational flexibility. Let’s take a closer look at these hidden downsides.

Reduced Negotiation Leverage

When your EA and Unified Support agreements expire at the same time, you lose the ability to negotiate each contract independently. This limits your ability to push back on price increases or demand better terms for one agreement without jeopardizing the other.

For example, if you’re dissatisfied with Microsoft’s Unified Support pricing but need to renew your EA for critical licensing, you may feel compelled to accept unfavorable support terms simply to avoid disruption. Separating these expiration dates gives you the freedom to negotiate each contract on its own merits.

To maximize your bargaining power, stagger your renewals and leverage one contract to negotiate better terms for the other.

Higher Costs

Coterminous contracts often result in bundled pricing that benefits Microsoft far more than you. By tying licensing and support together, Microsoft can justify price increases that might otherwise be negotiable if the agreements were handled separately.

At US Cloud, our clients report savings of 30-50% after switching from Microsoft Unified Support to our third-party support services—a testament to the inflated costs baked into Microsoft’s bundled agreements.

Limited Flexibility

Aligning contract expiration dates reduces your ability to evaluate alternative support options or licensing arrangements during renewal cycles. Enterprises locked into coterminous agreements are less likely to explore third-party support providers like US Cloud, even if those providers offer superior service at a lower cost.

Vendor Lock-In

Coterminous contracts can create a “take it or leave it” scenario, where you’re pressured to renew both agreements or risk losing access to your essential services. This limits your ability to make independent decisions about your support needs and can lead to vendor lock-in.

Budgeting and Cost Management Challenges

Unified Support costs are known to increase significantly over time, often 2-5x more than Premier Support. Separating agreements allows for better budget planning and cost optimization strategies.

Breaking free from coterminous contracts starts with separating the expiration dates of your EA and Unified Support agreements. This strategic move offers several key benefits:

• Improved Financial Planning: Staggered renewals allow for more predictable budgeting and cost management.
• Enhanced Negotiation Power: Negotiate each contract independently, leverage one contract to secure better terms on the other.
• Freedom to Explore Alternatives: Evaluate third-party support providers like US Cloud without being rushed into decisions during renewal cycles.
• Transition Buffer: If considering a switch to alternative support, having a non-coterminous agreement provides a buffer period to evaluate and implement new solutions without risking a lapse in coverage.

When you take these proactive steps to decouple your contract renewals, your organization positions itself for success in 2025. This strategic separation not only empowers you to make smarter financial and operational decisions but also ensures you’re never forced into a corner during a critical renewal period.

As you prepare for upcoming contract negotiations, it’s important to recognize the additional risks that come with renewing Microsoft Unified Support in 2025. Let’s look at a few of our identified risk factors:

• Pricing Unpredictability: Unified Support pricing is highly variable and subject to significant increases.
• Quality Degradation: As more clients use the “as-needed” ticketing system, Microsoft’s support services are struggling to keep up with demand, leading to longer response times and lower satisfaction.
• Support Sovereignty: Relying solely on Microsoft can limit your ability to control support quality and responsiveness.
• Monopoly Abuse: Microsoft’s dominance in both software and support markets can lead to anticompetitive practices, including bundling and price manipulation.
• Contractual Rigidity: Coterminous contracts lock you into inflexible terms, making it difficult to adapt to changing business needs.

Understanding these risks is essential for any organization looking to optimize its IT support strategy and avoid unnecessary costs or disruptions. Fortunately, there are proven alternatives that can help you regain control, reduce expenses, and improve service quality—making it possible to break free from restrictive Microsoft contract models.

Here at US Cloud, we specialize in helping enterprises navigate complex Microsoft contract negotiations while reducing costs and improving service quality.

Third-Party Microsoft Support

US Cloud provides reliable third-party support for Microsoft products, helping customers save 30-50% compared to Microsoft Unified Support pricing. Our team of experts delivers fast response times, proactive issue resolution, and personalized service tailored to your needs.

Support cost comparison showing potential 30-50% savings with US Cloud.

Contract Negotiation Expertise

We work closely with clients to identify opportunities for cost savings and improved terms during EA and Unified Support negotiations.  We help organizations regain control over their IT strategy by separating expiration dates and exploring alternative options.

Don’t let Microsoft’s coterminous contract strategy dictate your IT roadmap. By separating your EA and Unified Support renewal cycles, you unlock negotiation power, reduce costs, and gain the flexibility to choose the best support for your business. US Cloud is here to help you every step of the way—from contract analysis and negotiation to world-class third-party support.

12-month timeline for optimal EA renewal planning.

Ready to break free from restrictive Microsoft contracts?
Schedule a call with us today and discover how much you could save by separating your Microsoft agreements and exploring third-party support options.

What does it mean to coterminate MCA-E and Unified Support contracts?

Cotermination refers to aligning the expiration dates of your Microsoft Customer Agreement for Enterprise (MCA-E) and Unified Support contracts. This practice is often promoted by Microsoft as a way to simplify renewals but can limit negotiation power and increase costs.

How can separating contract expiration dates benefit my organization?

Separating expiration dates allows for better financial planning, enhanced negotiation leverage, and the freedom to evaluate third-party support providers like US Cloud without being rushed into decisions during renewal cycles.

Why should I avoid coterminous contracts?

Coterminous contracts reduce your ability to negotiate each agreement independently, often leading to higher costs and less flexibility in exploring alternative support options like US Cloud.

How does US Cloud help enterprises navigate Microsoft contract negotiations?

US Cloud provides expertise in separating contract expiration dates, negotiating favorable terms, and offering cost-effective third-party support solutions tailored to your organization’s needs.