

This is a cost-effective method of managing your Cloud resources. As staff members come and go, you can work quickly with your CSP to add or remove licenses as needed. Without the requirement of a one-year upfront commitment, you can be extremely flexible with your workforce. This is a key financial benefit for you if you have a business with activity peaks and valleys.
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You pay for what you license with no minimum requirements or long-term licensing commitments (A few CSPs ask for a one year or three year commitment).

You are not locked into a defined number of users, so you can increase or decrease as your business demands with no payment penalties. One of the key benefits of CSP is the flexibility and ability to just pay for what you need.

Learn what questions you should be asking a CSP. This is why partnering with an expert CSP who knows your environment and organization is crucial. The CSP provides a number of significant advantages, one of the most important of which is the amount of savings you can recognize – from license reductions to a more customized support experience with a partner that knows you well. You’ll want one that has extensive licensing and service capabilities to support your needs. So choosing a partner who is a good fit for your organization becomes more important. With the CSP, almost anyone can become a CSP. With an Enterprise Agreement you are working with one of 12 global Licensing Solution Providers (LSP) that Microsoft has allowed to transact the EA agreement. Numerous mergers and acquisitions have found value in this flexibility. That’s why many companies have chosen to partner with Microsoft CSPs and benefit from the cost savings of a much more flexible contracting agreement. Losing the flexibility to meet changing business needs is a major drawback of the EA, especially in a year like 2020 with the pandemic. While the EA may work well when you have a growing need for resources, cutting back is problematic since you can’t recover those costs if you don’t use the estimated Azure consumption or if the number of subscription licenses you own was greater than the number of employees. And this once a year renewal time is the only time in the agreement year that you can “True Down” any licensing for the cloud that are no longer needed.
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Then once a year you can “True Up” and add user subscriptions or software licenses without having to place individual purchase orders. At anytime in the agreement you reserve new cloud licensing or utilize new copies of the software that you are licensing. At the onset of the agreement, Microsoft and your organization will work to estimate your needs based on number of users and/or an expected dollar amount of Azure consumption each year for those 3 years. EA pricing is based on a scaled volume discount, so in general, the larger the size of your organization, the less you’ll pay for each license. EAs allow you to buy Cloud services and software licenses under one agreement for a 3-year commitment. CSPįor years, many larger organizations chose to engage with Microsoft through an Enterprise Agreement (EA).

Which direction should you choose? After looking at the alternatives, more and more clients are choosing the one that offers the most economic flexibility and cost savings - is to engage with a Microsoft Cloud Solution Provider (CSP). You’ve already decided to build your next great idea in the Microsoft Azure Cloud or to take advantage of a new feature with Microsoft 365, but a big decision still looms: What is the best way to procure these Cloud offerings? You have several options, such as EA, CSP, MPSA, Pay-as–you-Go, and they all come with implications in service and cost.
