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An Enterprise Agreement is a formal contract between a company and Microsoft that lets organizations buy software licenses and cloud services in bulk at discounted rates. These agreements typically cover products like Windows, Office 365, and Azure cloud services for hundreds or thousands of users.

Large businesses sign these multi-year agreements to save money, get dedicated support, and maintain consistent pricing. The agreement gives companies flexibility to add or remove licenses as needed, while ensuring compliance with U.S. software licensing laws and regulations. Many Fortune 500 companies use Enterprise Agreements as their primary way to manage Microsoft products across their organization.

Consider an Enterprise Agreement when your organization needs more than 500 Microsoft licenses or plans significant cloud usage over the next three years. This agreement makes the most sense for growing companies that want predictable IT costs and easier license management across multiple locations or departments.

The agreement delivers maximum value when you're expanding operations, planning a major software rollout, or moving workloads to the cloud. Large enterprises often time their agreements to align with fiscal planning cycles, letting them lock in discounts and spread payments over 36 months. It's especially useful for companies dealing with complex compliance requirements or needing dedicated Microsoft support.

• Enterprise Licence Agreement: Basic version covering software licensing only, ideal for companies focused on traditional desktop applications
• Enterprise License Agreement: Comprehensive agreement including cloud services, support, and training - suited for hybrid IT environments
• Award And Enterprise Agreement: Specialized version that combines software licensing with service level commitments and performance metrics, often used by government contractors

• IT Directors and CIOs: Lead the agreement negotiations, determine license quantities, and plan deployment strategies across the organization
• Legal Teams: Review terms, ensure compliance with data protection laws, and negotiate custom provisions
• Microsoft Account Executives: Present pricing options, structure deals, and serve as primary point of contact throughout the agreement term
• Finance Departments: Manage budgeting, track spending against commitments, and process payments
• Department Managers: Request software licenses, coordinate user assignments, and monitor usage within their teams

• Software Inventory: Document current licenses, users, and future growth projections across all departments
• Budget Planning: Calculate total cost over three years, including expected upgrades and additional licenses
• User Requirements: Map out which employees need which Microsoft products and service levels
• Compliance Needs: List specific security, data protection, and regulatory requirements for your industry
• Internal Approvals: Gather sign-off from IT, Legal, Finance, and department heads before finalizing
• Contract Review: Our platform helps generate a customized agreement that includes all required terms and conditions

• License Terms: Clear definitions of software products, quantities, and usage rights included
• Payment Structure: Detailed pricing, payment schedule, and true-up provisions for additional licenses
• Service Level Agreement: Support commitments, response times, and performance guarantees
• Data Protection: Privacy requirements, data handling procedures, and security standards
• Term and Termination: Agreement duration, renewal options, and exit conditions
• Compliance Terms: Software audit rights, reporting requirements, and usage monitoring
• Jurisdiction: Governing law and dispute resolution procedures for U.S. enforcement

An Enterprise Agreement is often confused with an Enterprise Bargaining Agreement, but they serve very different purposes. While both involve large organizations, an Enterprise Agreement focuses on software licensing and IT services, while Enterprise Bargaining Agreements deal with employee working conditions and benefits.

• Scope and Purpose: Enterprise Agreements cover Microsoft product licensing and cloud services, while Bargaining Agreements establish workplace terms between employers and employees
• Duration and Flexibility: Enterprise Agreements typically run for three years with annual true-ups for licensing changes; Bargaining Agreements often last 2-4 years with more rigid terms
• Parties Involved: Enterprise Agreements are between an organization and Microsoft, while Bargaining Agreements involve employers, employees, and unions
• Compliance Focus: Enterprise Agreements emphasize software licensing compliance and IT governance; Bargaining Agreements focus on labor laws and workplace regulations