Sovereign Network Group Microsoft EA Renewal Assistance: Maximising Value and Minimising Costs

Background

Sovereign Network Group (SNG) is a leading UK-based housing association committed to providing quality, affordable homes in vibrant, happy communities. With a strong presence in the south of England, they manage over 60,000 homes, including properties in the southwest and the Isle of Wight. Following a recent merger with Network Homes, they now oversee 84,000 homes, including those in London and Hertfordshire.

To support innovation and meet the needs of thousands of end-users, SNG maintains a multi-million-pound Microsoft Enterprise Agreement (EA). As this agreement is crucial for their Microsoft services and software, careful planning for their Microsoft EA renewal was essential.

SNG has built a solid foundation in license and cost management by investing in Software Asset Management tools, people, and processes. With a deep understanding of the complexities of Microsoft licensing, SNG recognised the value of partnering with independent Microsoft EA renewal advisors to unlock further benefits and optimise their strategy.

Challenge

With a goal to manage costs, simplify complex licensing options, and ensure their software portfolio aligned with evolving business needs, SNG engaged Version 1’s SAM practice eight months before their Microsoft EA renewal was due. The primary challenge was to identify strategies that would complement their in-house capabilities and deliver maximum value.

Following the recent merger between Sovereign Housing and Network Homes, Version 1 helped develop a consistent, group-wide licensing model that aligns core infrastructure licensing for both Windows Server and SQL. By mirroring these models, it was possible to streamline licensing across the board, to create a cohesive, cost-effective solution for the newly formed entity.

Approach

Version 1 adopted a collaborative, transparent approach to fully understand the opportunities and challenges related to SNG’s upcoming Microsoft EA renewal. Leveraging data-driven insights, expert licensing advice, and a KPI-based negotiation strategy, Version 1 implemented the following steps:

• Expert team assembly
• Microsoft contract analysis
• On-premises license position evaluation
• Cloud consumption position assessment
• New demand validation
• Renewal bill of materials development
• Negotiation strategy support
• Validation of negotiated offers to close

Since 2004, Version 1 has expertly guided organisations through the complexities of Microsoft EA renewals. This experience, combined with our independent and data-driven approach, has enabled us to secure significant value for our clients.

Solution

Version 1’s solution for SNG’s Microsoft EA renewal focused on three critical elements, combining deep Microsoft licensing expertise with SNG’s internal roadmap:

1. On-Premises License Optimisation: identification of redundant licenses and implementation of cost-effective licensing metrics tailored to current and future demand.
2. Cloud License Pathway Analysis: assessment of their online service requirements and recommended optimised licensing solutions to manage future costs. This included maximising BYOL (Bring Your Own License) benefits and eliminating unnecessary licenses.
3. Negotiation Support: A well-structured negotiation strategy was developed to maximise available concessions with strategic support delivered until the Microsoft EA renewal was completed.

Benefits

SNG experienced a range of benefits following their Microsoft EA Renewal, including:

• Optimised Windows Server licensing, leading to a significant reduction in annual licensing costs and delivering substantial long-term savings.
• A revised licensing strategy for dev/test and production environments, resulting in enhanced cost efficiencies and contributing to a more sustainable IT infrastructure.
• Transitioning SQL Server licenses resulted in significant long-term savings, aligning investments with actual usage.
• The revised Windows Server licensing approach, particularly in Azure, unlocked further cost efficiencies.
• Gained valuable insight into the licensing impact of the recent merger.
• Strong negotiation support maximised available concessions, ensuring SNG’s best interests during the Microsoft EA renewal.
• The timely renewal improved vendor relationships and ensured smoother resource allocation, allowing staff to focus on daily operations.
• Established a foundation for ongoing cost optimisation of Microsoft assets.
• Reduced the complexity created by the recent merger by streamlining the licensing.

Conclusion

This project demonstrated the importance of early engagement and comprehensive preparation for a successful Microsoft EA renewal. Key takeaways included:

1. Empowerment and Expertise: The project underscored the value of skilled licensing professionals on the client’s side, ensuring they navigate the complexities of Microsoft EA renewals confidently and avoid potential pitfalls.
2. Client-Centric Approach: Version 1’s client-focused approach, treating SNG’s challenges as our own, fostered trust and ensured cost savings and operational efficiencies throughout the process.

If you have a Microsoft EA and your renewal is due in the next 9-12 months, learn more about the benefits of Version 1 EA Assist. Alternatively, arrange a complimentary Microsoft Enterprise Agreement workshop to prepare your renewal strategy through the form below.