The Microsoft renewal where half the savings were achieved before the negotiation started

Sector

Commercial Sector

Year

2025

Client Profile

Large Microsoft Customer

Business Issues

• IT budget was reduced by 5%
• Microsoft 365 price increased 19%
• Azure growth at 11% pa
• Microsoft “Everyone is using everything you currently have, so you need to buy all that again + some new products”

Services and Results

• Keystone performed a granular review of the current-state Microsoft 365 environment identifying 17% shelfware (over licensed)
• Using the same cost optimization SAAS tool we found 12% of the Azure spend was over-sized or not needed including Fabric, Savings Plans, Storage and Compute resources
• We did this without needing a user account in the production systems or installing anything
• Before we started developing a negotiation strategy we had saved $8 million