Office 365 is a software platform created by Microsoft that provides various online services for businesses. When a company subscribes to Office 365, they have the option of signing an Enterprise Agreement (EA). This agreement is a contract between the company and Microsoft, which outlines the terms and conditions of the licensing of Office 365 products and services.
The purpose of an EA agreement is to simplify the process of purchasing and managing software licenses. An EA agreement allows companies to purchase software licenses for a fixed period of time, typically three years. It also provides volume licensing discounts, making it more affordable for businesses to obtain licenses for their employees.
One of the key benefits of an EA agreement is the ability to add and remove licenses as needed. This flexibility allows companies to easily adjust the number of licenses they need based on changing employee numbers or business requirements. Additionally, companies have access to Microsoft`s technical support services to help with any issues that arise.
To sign an EA agreement, companies must meet certain eligibility requirements. They must have a minimum of 250 desktops or users that need to be licensed and be able to make a minimum initial purchase of 500 points. Points are a system used by Microsoft to determine the cost of licenses, with different products and services costing different amounts of points.
One important aspect of an EA agreement to consider is the commitment period. Companies are typically committed to the agreement for the full three-year term, meaning they cannot cancel the agreement early without incurring penalties. However, companies can add or remove licenses during this time as needed.
In conclusion, an EA agreement is a beneficial option for businesses looking to purchase and manage software licenses for Office 365. It provides volume licensing discounts and flexibility in adding and removing licenses, as well as access to Microsoft`s technical support services. It is important to carefully review the eligibility requirements and commitment period before signing an EA agreement.