What is an ELA Agreement and How Can You Get One?
Enterprise License Agreements, or ELAs, are legally binding contracts between a company and a software vendor. The ELA grants the company unlimited access to their software, usually at a discounted rate, for a specified period. This offers several benefits to the business, such as lower software costs and increased efficiency. Vendors also benefit by selling more of their products, but with fewer contracts to manage.
Keep reading to find out what an ELA is, how to get one, and the best practices you can use to maximize the value of your agreement.
Authorized Microsoft Software Vendor
At Applied Tech, we are an authorized Microsoft software vendor committed to helping your business stay productive and efficient. If your organization has 500 or more users, ask us how we can help you obtain a Microsoft license agreement. Plus, our team of IT experts can train you on each tool in the Microsoft suite to ensure you get the most out of your solutions.
What is an ELA?
ELAs are designed to align the interests of both the business and its preferred software vendor by streamlining the acquisition process. An ELA achieves this by creating scalable systems that meet the business’s needs, enhance technology spending efficiency, reduce asset management and software compliance costs, and consolidate all software licensing agreements (SLAs) into a single organization-wide contract.
ELAs are tailored to each agreement, based on the company’s size, industry, and specific needs. Most ELAs require a minimum net purchase, security and password measures, and subscription-based licenses.
6 Benefits of Enterprise License Agreements
- Lowered cost
Instead of buying, managing, and renewing individual licenses across your organization, an ELA offers a single license that grants access to all the vendor services throughout the entire business. - More discounts
ELA agreements involve bulk purchases, and vendors often offer discounts for large quantities compared to their single licenses. - Fewer disruptions
Missing a yearly license renewal can result in expiration and business disruptions. An ELA enables teams to focus on just one license, decreasing the risk that an oversight in renewals will cause downtime. - Less waste
Single-license agreements can lead organizations to purchase more licenses for rarely used products inadvertently. An ELA lets companies bundle services, helping them avoid paying for unused ones. - Predictable budgets
During the agreement, you can agree on a fixed price before the licensing process starts. This helps your company better predict your budget, unlike the unpredictable costs of individual licenses. - Scalable services
ELAs often offer an option to claim credits for underused services, allowing a business to tailor its service usage to fit its specific needs.
How to Get an Enterprise License
To obtain an enterprise license, first conduct thorough research on different software vendors to understand their offerings, costs, and terms. Pay attention to whether they require subscriptions or offer unique features that could benefit your company.
A few common vendors include:
Microsoft: Requires companies to purchase a Microsoft Entra subscription
Atlassian: No subscription required to form an ELA
Oracle: Requires a subscription to use their software.
Once you know the vendor you’d like to work with, contact their team or authorized reseller to discuss your options. Get an understanding of their licensing models, whether they offer a per-device, per-user, or subscription-based model.
After purchasing your license, confirm you can access all portals or license files downloaded from your vendor’s portal. Start deploying and assigning licenses using the keys provided or through the vendor’s admin portal. Ensure every device or user is assigned a license.
5 ELA Best Practices
With an ELA, organizations can simplify and streamline licensing agreements with a vendor by avoiding individual licenses and replacing them with a single, company-wide license. However, to get the most value from your enterprise license, you need a clear, shared understanding of key details between your company and your vendor.
Get maximum value from your ELA by establishing these 5 best practices:
- Define start and end dates
Sometimes, ELA products include an extended deployment as services and equipment are being integrated into the business. Confirm with your vendor whether the ELA term begins at deployment or once the system is operational. - Confirm consumption accuracy
Avoid the difficulty of tracking service consumption, which can be hard when hardware has been purchased but not yet deployed, or when the software isn’t installed. Request consumption reports to verify with your IT teams. - Secure the right to audit
Vendors usually have the right to audit your IT infrastructure to verify license compliance. However, as their customer, you should also ensure that you have the right to audit and verify the accuracy of the consumption and usage data. - Refine substitution methodologies
ELAs sometimes allow a business to claim credits for underutilization of specific services. Ensure both you and your vendor agree on how credits can be claimed and applied to other services if needed. - Keep track of service consumption
To help with future budget planning and optimize the entire ELA, ensure that consumption is monitored throughout the full duration of the agreement.
Following these five best practices will help your company avoid confusion, stay compliant, and maximize the value of your ELA. A well-structured agreement can increase cost savings and provide flexibility as your business expands. Your ELA is a strategic asset in building a safe, efficient, and scalable technology stack.
Authorized Microsoft Software Vendor
At Applied Tech, we are an authorized Microsoft software vendor committed to helping your business stay productive and efficient. If your organization has 500 or more users, ask us how we can help you obtain a Microsoft license agreement. Plus, our team of IT experts can train you on each tool in the Microsoft suite to ensure you get the most out of your solutions.
Enterprise License Management
Enterprise licenses require consistent monitoring to ensure they operate within your business as effectively as possible. There are several aspects to keep track of, including compliance, software usage, best practices, wasted spend, and renewal terms. By consistently monitoring all of this information, your company will be able to identify areas where software may not be used properly or where compliance measures are lacking.
Managing ELA can be draining since it never truly ends. Outsourcing your ELA monitoring to a trusted MSP allows you to rely on them to deliver the best value from your software. Additionally, a team of IT professionals can identify security gaps in the software and offer solutions to enhance security and productivity.
If you’re interested in obtaining an ELA license, contact us today to learn more about our partnership with Ingram Micro and how we can help you secure a Microsoft license agreement.
About Applied Tech
Applied Tech is a leading IT and cybersecurity services provider dedicated to helping businesses protect their digital assets. Our proactive and strategic services include cloud management, security, productivity, and IT growth strategy. With a team of experienced professionals, we provide unique solutions tailored to your IT needs.
Protect your business with Applied Tech’s fully managed IT services, co-managed support, and security assistance. With IT services focused on your business goals, keep your team productive and your data secure.
