9 of 10 respondents cite increased prices from vendors as a top challenge
Continued inflationary pressures, shifting workplace dynamics, increased spend and the demand for innovation—see what’s new in the latest Tech Spend Pulse. Microsoft Office 2019 Standard valume
Microsoft recently made significant changes to its licensing policies for Windows Server 2022. By removing specific requirements and aligning licensing with actual core counts, Microsoft aims to address licensing complexities and more effectively compete for market share against Linux and other competitors. These changes also allow additional opportunities for organizations to optimize their spending on Microsoft licenses.
Organizations should review these changes and consider optimizing their Microsoft Windows Server licensing strategies to leverage the benefits of cloud services and explore alternative options if deemed suitable. The alterations include:
These modifications provide organizations with cost-saving opportunities and encourage the adoption of cloud services. Although not publicly announced, these changes were quietly updated on the Product Terms page.
Simplifying the licensing rules and enhancing customer satisfaction is certainly a laudable driver for these new rules.
There are other “political” reasons behind these smoother rules:
Organizations under a Microsoft Enterprise Agreement (EA) receive price protection and locked-in use rights and terms for at least three years. However, when it comes time for renewal, companies must review and mitigate the risks associated with three years’ worth of changes. This highlights the importance of starting the preparation process early.
The October 2022 and April 2023 changes require no change for Flexera customers to be fully supported. Flexera implemented the optimization capabilities to take advantage of these rule changes so customers can immediately begin reaping the cost savings available from these new benefits.
IDC predicts Worldwide Server Market Spending will grow 7.7 percent CAGR over the next five years. As a part of this, the Microsoft server market remains vibrant and critical.
In light of these licensing changes, organizations should carefully assess their Windows Server licensing strategies. Removing specific requirements opens possibilities for optimizing costs and utilizing cloud services.
Consider the following steps to maximize cloud spending in the wake of Microsoft’s recent changes:
One of the top priorities of ITAM teams is to save money. Optimizing spend (across cloud, on-premises and SaaS) is also a driving factor, with the goal of improving budgets. But the blueprint provided by ITAM also has a wider reach, delivering value for initiatives related to security; IT service management (ITSM); planning; budgeting; regulatory requirements; environmental, social and governance (ESG); enterprise architecture and beyond. When ITAM is used in conjunction with FinOps (the practice of cloud financial management), companies have the opportunity to truly optimize their IT estates—and savings.
A mature ITAM program enables an organization to have full visibility into its IT assets so it can cost-efficiently use those assets. It also enables the organization to track end of service/support (EOS) and end of life (EOL) of these assets. This allows an organization to proactively identify potential issues (performance and/or contractual) before they arise.
The technology landscape is changing rapidly. Digital transformation pressures are mounting. The highest-functioning enterprises are leaning on ITAM practitioners who face new and evolving challenges across public cloud, hybrid cloud and SaaS technologies.
Flexera One lets enterprises visualize their entire technology estate, from on-premises to SaaS to the cloud. And it delivers the power to mitigate risk, reduce costs and maximize every technology investment—so you can invest in innovation.
It all starts with knowing what’s in your IT ecosystem. Flexera One discovers even the most elusive assets whether on-prem, SaaS, cloud, containers and more.
It matters to the bottom line. The most advanced users of ITAM save millions of dollars by knowing their actual consumption and comparing it to technology agreements. Savings can be invested in R&D and innovation.
Put your organization in a position of greater control before the next software vendor or cloud provider announces changes that impact your usage costs and your bottom line. And arm yourself with the comprehensive cost and usage data that gives you an advantage when you sit down at the technology negotiation table.
Find out how: https://www.flexera.com/blog/technology-value-optimization/radically-rethinking-your-technology-supplier-relationships/
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