The Microsoft deal looked competitive. We found another 11%
The Challenge
Colt, a £2bn technology business was about to lock itself into a major multi-year Microsoft agreement. The question was simple: was it actually a good deal?
On paper, the deal looked competitive. It wasn’t.
The strongest discounts were concentrated in Years 1 and 2, new SKUs were being added, and future pricing protections were limited, creating the potential for significant cost escalation over the term.
Meanwhile, the incumbent reseller was facilitating the transaction, not independently challenging it. The CFO engaged SWAN to find out what the deal was really worth.
Our Asssessment
SWAN independently benchmarked the renewal against comparable Microsoft Enterprise Agreements.
The finding was clear: the proposed pricing was approximately 4% behind market for an organisation of Colt’s scale and complexity.
But price wasn’t the only issue.
The assessment identified front-loaded discounts, unnecessary SKU expansion and limited protection over future licence pricing, increasing commercial exposure over the agreement term.
A clear negotiation strategy was established: reset the pricing, remove unnecessary scope and restructure the agreement to protect Colt beyond the immediate renewal.
The Outcome
The negotiation delivered an 11% overall reduction in Microsoft costs, including a further 4% improvement against Microsoft’s original renewal proposal. The final agreement also delivered:
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More consistent discounting across the contract term
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Removal of unnecessary licensing
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Pricing protection for future licence growth
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Reduced exposure to future cost escalation
Colt entered the new agreement with lower costs, stronger protections and significantly greater commercial control.