Why June is the perfect month to negotiate with Microsoft

Did you know that Microsoft's fiscal year ends in June?

It's June...that means my allergies are flaring up and my phone is ringing off the hook. The first part will make sense to anyone who suffers from allergies and the second to anyone who realizes that June marks the end of Microsoft's fiscal year.

Like with any other company, the end of the fiscal year marks a last ditch effort to recognize as much revenue as possible. This means that Microsoft folks are pushing deals harder, possibly becoming a little more aggressive in following up on lagging true-ups and offering incentives to get those deals closed.

If you consider the economic conditions of 2009/2010 a company has two choices...pull out all the stops to bump revenues as high as possible to minimize the pain or make last year as painful as possible since everyone's expecting it to have been a bad year and make 2010 look phenomenal by getting an early jump on it.

However; once you throw in stockholders and sales folks whose bonuses are based on revenue you're pretty much stuck with the first option. So, if you're considering a Microsoft purchase this month or in the next two...consider how much it's worth to you to move that deal up to completion by June 18th (or thereabouts) and then start negotiating.

Looking for more tips on saving money on your software agreements? My blog on Software License Management has a number of postings starting with this one that might give you some ideas on what to aim for in your Microsoft negotiations.

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