Strategic Microsoft Renewal Scenarios: How to Prepare and Stay in Control

When it comes to Microsoft renewals, timing and strategy matter a lot. Depending on how your Enterprise Agreement (EA), Microsoft Customer Agreement (MCA), Microsoft Azure Consumption Commitment (MACC), and Unified Support (Enterprise Services Work Order – ESWO) renewals are aligned, Microsoft will approach the negotiation very differently. Below are three key customer scenarios that outline what to expect and how to position yourself for success.

Scenario 1: Aligned Products, Azure, and Support Renewals

When all your major Microsoft agreements renew at the same time, you’re in an ideal position to negotiate strategically. This alignment gives you the opportunity to take a holistic view of your entire Microsoft portfolio – across licensing, cloud strategy, and support.

With this approach, you can evaluate how your product subscriptions impact one another. Many Microsoft services are available under different models, typically traditional license-based or cloud consumption-based, and these choices have a downstream impact. Does it make sense to take a subscription or workload-based approach?

Additionally, Unified Support fees are calculated as a percentage of your Azure and product spend. So, as you increase Azure consumption or adopt new Microsoft solutions, support costs subsequently rise.

By viewing everything collectively, you can plan for these impacts and position potential commitments in a way to leverage your organizational goals while also aligning with Microsoft’s interests as much as possible throughout the negotiation. Microsoft is focused on product adoptions, increasing their professional services (Support) revenue, and commitments to growth, especially around Azure.

However, even with perfectly aligned renewal dates, Microsoft will fragment the focus and force customers into multiple negotiation workstreams. Their sales teams are trained to “divide and conquer,” pushing separate conversations for Azure, Support, and Product (EA) to isolate decisions and reduce your leverage. To stay in control, it’s essential to unify your internal stakeholders and force the conversation back to a consolidated table.

Scenario 2: Azure Renewal Before Products (EA)

In cases where Azure renews before the EA, Microsoft will zero in on your Azure spend and consumption trajectory. Their focus will be extremely narrow, and they’ll make it difficult to connect the Azure negotiation to broader agreement conversations.

They will look at your current Azure run-rate and push for higher commitment because they know you’re already invested. And realistically, they understand how hard it is for organizations to back out of cloud workloads. From Microsoft’s perspective: “Why would we give you any incentive when you’re already locked in?”

This puts organizations on the defensive. The negotiation can quickly shift from “How do we grow this relationship strategically?” to “What more do I have to give just to preserve the deal I already have?”

It’s a tough spot to be in and can even be amplified, especially if your Unified Support renewal is also off-cycle, adding additional complexity and cost without giving you the ability to trade across agreements. That large Azure commitment you recently made won’t have any impact on the Support concessions Microsoft is willing to give years, months, or even days after the Azure agreement is signed.

The same is true for your product agreements as well; Microsoft will be quick to tell you how the multi-millions of dollars you just gave them has no impact on the metrics they look at for product concessions. They will tout partnership and then throw that partnership back in your face.

Scenario 3: Product Renewal Before Azure

When your EA or product renewals come up before Azure, Microsoft will aggressively drive their current priorities, regardless of your internal roadmap. If you haven’t adopted Microsoft 365 E5, expect a full-court press. You’ll likely hear pitches about how E5 can consolidate your security stack or reduce third-party spend, even if those claims don’t align with your actual needs.

AI (Artificial Intelligence) is another hot-button issue, and Microsoft will almost certainly push Copilot and other AI services as part of your renewal conversation. These aren’t just product pitches – they’re strategic plays that reflect Microsoft’s own business goals. If your roadmap doesn’t align, expect the negotiation to be difficult and one-sided.

And even if your Azure footprint is growing or you’re planning to move new workloads to the cloud, that leverage won’t matter here. Microsoft tends to silo conversations by renewal type, which means any potential influence from your cloud investments is effectively off the table until your EA/product negotiation is up. Again, don’t forget about Support; the remainder of your portfolio will have an impact.

Without strong internal alignment and a clear negotiation strategy, it’s nearly impossible to tie everything together. Microsoft is counting on that.

Drive Strategy, Don’t React to It

The key to successful Microsoft renewals is flipping the script – getting Microsoft to engage on your terms, not theirs. That means thinking holistically, aligning your internal stakeholders, and breaking down the silos Microsoft will try to reinforce.

Knowing how to get Microsoft to play-ball is critical towards setting up your organization for future success and holistic renewals downstream. It is not easy to get them willing to reduce their own leverage and introduce more wrinkles to their playbook. They want customers to think about things tactically, separately and quite frankly, incorrectly.

Their default playbook is designed to keep customers reactive and tactical. But with the right strategy, you can change the narrative and set your organization up for long-term success across the entire Microsoft ecosystem.

Ready to take control of your Microsoft renewals and negotiations? Don’t let Microsoft dictate the terms. Our Microsoft Advisory Practice helps you unify your strategy, align stakeholders, and negotiate with confidence.