Microsoft® tightens discounting policies

As Microsoft® enters its last quarter of 2012 Fiscal Year 2012, I wanted to share with you a change I've seen occurring over the last couple of quarters from a discounting perspective. 

I have had the opportunity to negotiate almost a thousand Enterprise Agreements over the last 12 years and have always stressed and proved to my customers that licensing optimization is more important and beneficial (both from a short and long term perspective) than receiving additional discount points.  This is even more the case today as Microsoft® is hammering down on its discounting policy.

What this means is that local field empowerment is being cut (Account Managers and Licensing Specialists) and discount levels that you could receive in the field now require a higher level of approvals (usually a GM level and more often a regional Licensing Executive approval). This additional intervention is slowing down negotiation cycles and adding more stress and distrust to an already challenging relationship between customers and Microsoft®. That’s not to imply that you cannot receive substantial discounts or should not set a high bar for your negotiation goals. 

My point is that you need to prepare accordingly and adjust your tactics and strategy to the changing tides from within Microsoft®.