FTE 3 Year Contract

[ITGURU]

Hi

 

We changed MS reseller last year and turns out we were then on a 3 year MS contract , however prior to that we were on a 1 year contract.

 

The time has come to renew and been asked for our quantities, but now is the issue:

 

Some suppliers have told me that at the anniversary date you CAN go lower than your initial FTE count, but others tell me that during the 3 years you cannot go lower than what you initially took the contract out at.

 

Can anyone shed some light on this as I don't know which one is telling porkies!

 

Obviously if it's a 1 year contract you can go up or down (and this is what MS documentation states), but if you are on a 3 year, can it or can it not go below the count taken out in the first year?

[Boredguy]

From what we were initially told when the EES scheme started, if you go for a 3 year agreement with a FTE of 120, that is what you pay for the further 2 years regardless if your FTE decreases.

If your FTE increases above the initial 120 in year 2 or 3, then you have to add to the agreement.

 

You did not get a reduction if your FTE count had reduced for the remainder of your agreement, and I do not think that has changed. Obviously if your at the end of the 3 year agreement, then it should not make any difference if your FTE is now lower than it was the first time round.

[ITGURU]

From what we were initially told when the EES scheme started, if you go for a 3 year agreement with a FTE of 120, that is what you pay for the further 2 years regardless if your FTE decreases.

If your FTE increases above the initial 120 in year 2 or 3, then you have to add to the agreement.

 

You did not get a reduction if your FTE count had reduced for the remainder of your agreement, and I do not think that has changed. Obviously if your at the end of the 3 year agreement, then it should not make any difference if your FTE is now lower than it was the first time round.

 

 

Even when I asked the suppliers they all double checked and were telling me that each other hadn't been working with Microsoft long enough and what they were telling me was 100% true!!

[robk]

From what we were initially told when the EES scheme started, if you go for a 3 year agreement with a FTE of 120, that is what you pay for the further 2 years regardless if your FTE decreases.

If your FTE increases above the initial 120 in year 2 or 3, then you have to add to the agreement.

 

You did not get a reduction if your FTE count had reduced for the remainder of your agreement, and I do not think that has changed. Obviously if your at the end of the 3 year agreement, then it should not make any difference if your FTE is now lower than it was the first time round.

 

This is what we were told as well. Just moved from a three year to a one year agreement for this very reason.

 

Its a shame we have to trust the resellers and MS don't make this sort of info available.

[ITGURU]

This is what we were told as well. Just moved from a three year to a one year agreement for this very reason.

 

Its a shame we have to trust the resellers and MS don't make this sort of info available.

 

I assume that you can only move back to a 1 year agreement after the 3 years is up? Did you have to specifically specify you wanted 1 year only?

 

I don't know why we got put on a 3 year when changed reseller! They must have just assumed!

[CyberNerd]

The obvious thing to do is go with the supplier who will sell you less licenses because it will be cheaper. If this turns out not to be the case and MS won't allow it then either you won't need to pay them because MS won't sell it to them or MS will make an exception.

[George_j]

Hi Guys,

 

I would like to jump into that as well. I am AM and work for one of the Microsoft Partners. So i could confirm that is possible to reduce the number of users with the amount which you need!

That is a trick done from one of the resellers in order to maintain the margin, without providing the customer with relevant information!

I could say one thing - you could play around with the licenses the way you would like... of course there are some exceptions as the Desktop CaLs should meet the amount of the Office 365 for stuff(if used).

 

if you need any further information please let me know.

 

have a great day.

[Sagima]

I'm sure mine has always allowed changes within the 3 year contracts as my fte workers go up and down (mostly down). what I actually want tends not to change much year to year. Have used dabs/dell/idns and they seemed fine with it.

 

what I couldn't do was replace sql ent with sql bi within the three years otherwise all my requirements are met as I would expect them to be

Edited January 20, 2016 by Sagima

[George_j]

Also another thing to bear in mind, which might be quite useful:

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[TD]DsktpEdu ALNG LicSAPk OLV E 1Y Acdmc Ent DsktpEdu ALNG LicSAPk OLV F 1Y Acdmc Ent

 

According to you is there any difference? I will save you some time you see the 2 colored letters E and F correct? So that tiny difference will spare you the hassle ITGURU. That is the difference between 1 and 3 year agreement. Level E - 1 year agreement. Level F - 3 year agreement. The only difference between those is the annual cost, the difference is around 3pounds pre license.... So that could explain the great offer which you received......[/TD]

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[jmak]

I have a 3 year agreement - my supplier was upfront and said that reduced the cost. I have changed suppliers and numbers (both up and down) on the 1 year anniversary. It's reflected in the number of licences in the VLSC and the price I'm paying, so works for me and seems to be legitimate (Microsoft must be aware). I don't know what would happen if I wanted to ditch the agreement altogether, but that's not likely to happen.

[GeekyPete]

If you are on OVS-ES or EES you pay by FTE as you pointed out. You Should submit your FTE each year if it alters in anyway. Irrespective of the length of contract you are on. If your FTE increases you need to pay more to stay licenced. If your FTE goes down then you can reduce your costs. However MS need notice of this you'll have to email them in advance. From what I remember you need to mail them 60 days before the anniversary of the contract.

 

Edit: The notice period appears to be for the three year contracts. If you are on an annual contract you just need to give them the new FTE count with your annual order.

 

From MS EES FAQ;

What if my FTE faculty and staff or FTE student count changes during my licensed period?

For on-premises desktop and CAL products or Student Option desktop and CAL products you have licensed organization-wide, if your faculty and staff or student FTE count changes during the course of your licensed period, all users remain licensed at no additional charge. Include your new FTE count when you submit your next annual order.

Edited January 20, 2016 by GeekyPete