Pricing Strategies
Enterprise Agreements
Enterprise Agreements (EAs) are customized contracts between software vendors and large organizations that allow for purchasing software and services at scale. These agreements typically include volume licensing but are tailored to the specific needs of the organization, often incorporating flexibility in terms of growth and software deployment.
TYPES OF SOFTWARE
Comprehensive software suites that require integration across multiple departments or locations, such as Microsoft Office or Adobe Creative Cloud.
Enterprise resource planning (ERP) and customer relationship management (CRM) systems that serve as the backbone for business operations.
Cloud services and infrastructure solutions where scalable usage is necessary, such as AWS or Azure.
BENEFITS
Job Type
CHALLENGES
Complex Negotiations: Crafting an EA can involve lengthy and complex negotiations due to the large scale and customization involved.
Long-term Commitment: Organizations are typically locked into long-term agreements, which can limit flexibility if business needs change.
High Upfront Costs: While providing cost savings in the long term, EAs often require a significant upfront investment.
PSYCHOLOGICAL TACTICS
Cost Savings Presentation: Emphasizing the long-term savings and value that the agreement will provide, helping to justify the initial expenditure.
Exclusivity and Customization: Positioning the EA as a tailored, exclusive offering that meets the unique needs of the organization.
TESTING & FEEDBACK
Stakeholder Consultation: Engage with key stakeholders across the organization to assess needs and ensure that the EA covers all necessary areas.
Pilot Implementations: Roll out the software in stages to gather feedback and adjust the agreement as needed before full deployment.
Performance Metrics: Set up metrics to evaluate the effectiveness and ROI of the software provided under the EA.
IMPLEMENTATION
Clear Terms and Conditions: Ensure that all terms, conditions, and obligations are clearly defined and understood by all parties.
Regular Reviews: Schedule regular reviews of the EA to ensure it continues to meet the organization’s needs and to make adjustments for any changes in scale or scope.
Training and Support: Provide comprehensive training and robust support to maximize the adoption and effective use of the software across the organization.
BEST FOR
B2B
FLEXIBILITY
High
Enterprise Agreements offer high scalability, accommodating growth and changing needs over time. They also provide some flexibility in terms of deployment and usage, though changes can require renegotiation.
REAL-WORLD EXAMPLE
Microsoft offers Enterprise Agreements as part of its licensing structure for large organizations. These agreements allow companies to license products like Windows, Microsoft 365, and server solutions in a way that can be scaled easily and cost-effectively. They typically last for three years and provide a range of benefits, including predictable pricing, the ability to add additional products at the same pricing tier, and extensive support and training resources. This type of arrangement is particularly beneficial for global corporations that require a broad deployment of software and services across multiple international locations.
View the collection of Pricing Workshops.