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The Enterprise Agreement and Office 365®

///The Enterprise Agreement and Office 365®

In order to enable the seamless movement between on-premises, online and hybrid environments, a series of changes have been made to the structure of the Enterprise Agreement.


There are five key updates:


  1. The agreement allows you to transition to cloud services at your own pace, allowing you to evaluate and deploy the right blend and timing for cloud services with your existing IT.
  2. You have the option to move users back and forth between on-premises and Online Services.
  3. You are able to match and adjust service plans to meet the needs of your users. For example, some of your employees could use Office 365® Plan E1, taking advantage of email, team websites, Instant Messaging, presence and conferencing, while others would benefit from Office 365® Plan E3 with Exchange Online, SharePoint® Online and Office Professional Plus.
  4. You can add and adjust new online users above your initial Enterprise Agreement commitment. This allows you to license your seasonal workers or kiosk workers and have the flexibility to change the number of those licenses when you need to.
  5. There are no incremental online services costs in the year a user transitions. The transition from an Enterprise Product to an Enterprise Online Services may occur prior to the anniversary, but the payment for the online service start only at the anniversary


How to transition Online Services within an existing Enterprise Agreement

The Enterprise Agreement allows you to move users to the cloud at your own pace. An example of a typical departmental transition is shown below. (Assuming a 1 to 1 ratio between devices and users)


Start EA

End Year 1

End Year 2

End Year 3

Platform EA Per Device





Office 365® E1





Office 365® E3





Office 365® E4






Equivalent versus Non-equivalent Transitions

The transition is considered equivalent when there is a like to like workload transition from On-Premises to Online. An example of this would be Office Professional Plus & Enterprise Cal to Office 365® E3 and the Enterprise CAL Bridge for Office 365®. When the license is equivalent, there are no transition costs during the transition year.


The transition is considered non-equivalent when there is a transition to a greater workload. In this case, there will be a reduced prorated Online Services cost that is applied during the transition year. An example of this would be Office® Pro Plus to Office 365® E3. The prorated calculation is made on the month following the transition.


Transition Billing

All appropriate billing and licensing adjustments are made at the anniversary date, although you can submit a manual order at the time of transition if you so wish. When the transition is equivalent the annual payment is only for the next year.

If the transition is non-equivalent, at the anniversary date, you will pay the prorated amount and then for the following twelve months.


This also the case if you add new users to the Online Service.


Making a Reservation

When you decide to move users to the Office 365® service, you will need to reserve the licenses you require.


You are not limited to the number of reservation requests you can make between anniversaries.


  1. Make a reservation request: Currently the requests are made through a manual order form, but the plan is to automate the process in the near future through the Volume Licensing Service Center (VLSC).
  2. Step 2: Assign the Licenses: The IT Administrator names users for each email account reserved.
  3. Step 3: Use the services: The User makes use of the services
  4. Step 4: Reconcile Net New Users vs Transitions: It is important to reconcile transitions versus new users or Microsoft® will invoice as if they are all net new users and the adjustment with the Enterprise Desktop commitment will not be made. You will receive a monthly e-mail summarizing the number of reservations you have requested.
  5. Step 5: Purchase Order: Microsoft® will generate an invoice as part of the anniversary payment


Terms and Conditions Pit – Hols

Liability for Deletion of Customer Data:Microsoft® holds no liability for the deletion of Customer Data.
Responsibility for Your Accounts:You are responsible for your passwords, if any, and all activity with your online service accounts including that of users you provision and dealings with third parties that take place through your account or associated accounts
Availability of the Online ServiceAvailability of the online service, some of its functionality and language versions vary by country.  End users may only use the online service, or certain functionality of online service, as is made available in the primary location of the end user.
PrivacyPersonal data collected through the online service may be transferred, stored and processed in the United States or any other country in which Microsoft® or its service providers maintain facilities.
Security of Customer DataMicrosoft® will implement reasonable and appropriate technical and organizational measures, as described in the security overview applicable to the online service to help secure your customer data processed or accessed by the online service against accidental or unlawful loss, access, or disclosure.
Scope of UseYou may not use the online service in a way that is prohibited, could harm it or impair anyone else’s use of it; gain unauthorized access to any service, data, account or network, falsify any protocol or email header information , send “spam” or remove, modify, or tamper with any regulatory or legal notice or link that is incorporated into the online service
Limited Warranty for Online ServicesThe limited warranty does not apply to downtime or other interruption in access to online service or any other performance metrics that are addressed in the Service Level Agreement for the online service.
2017-11-13T20:15:57+00:00Nov 2016|
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