Summary
Anonymity guarantee
We must never give our clients away to the wrath of Microsoft. To protect them and their business, the client referenced here has been kept anonymous. Everything else is 100% a true story.
Microsoft and its appointed auditor were bearing down
Increasing complexity and constantly changing the rules let Microsoft initiate an aggressive audit on this healthcare IT services company. They came to SAMexpert stressed about not just losing millions of dollars but also facing operational impact that could significantly harm their business.
Where could we make a difference?
Our first step, the moment we got on the phone with the client, was to understand the situation and develop a plan of action.
Analysing pre-submission to identify the baseline risk
Validating and supporting data submission for critical clean-up activities before submitting data
Validating auditor claims
Quantifying potential over-reporting and surpluses
Developing a structured negotiation strategy
Minimising financial and operational impact
High stakes, low stress
This wasn’t the sirens-blaring-battle-stations-go-time-red-alert chaos you might imagine when business continuity is threatened and millions of dollars are at risk. Our first step as always is to reassure the client that we’ve got this and then move forward with purpose and efficiency.
Uncovering major exposure
As always, we started with a baseline analysis to see what we’d be working with. What came up wasn’t good news. Huge compliance exposure, inconsistent configuration and gaps in historical data meant the business was facing big trouble with this audit. And Microsoft probably knew it.
Cleaning up
Like throwing a huge party when your parents are out of town, we needed to get everything cleaned up and squared away before Microsoft and their auditor walked through the door. We set to work validating and cleansing. Mapping product usage accurately, cross-checking dates and timelines, submitting final data, preparing documentation and packaging everything up in a way that pre-empted auditor challenges.
Beating the auditor at their game
Then came the moment we’d been preparing for; the auditor hit us with the draft ELP. We immediately jumped to action to push back on common auditor biases and tactics. In this case, the auditor had deliberately kept out of the report times where the client reported and paid for more than was consumed. They also failed to account for legacy estate decommissioning and client onboarding timelines.
Across six iterations, we challenged and refined the ELP again and again to make sure the client would not be held liable for anything unnecessary. This included:
Conducting deep-dive analysis
Identifying and correcting miscounts
Introducing overlooked surpluses and exclusions
Generating additional supporting evidence
Coordinating detailed rebuttals and justifications
Ensuring all refinements were incorporated
Stepping up for the negotiations
What it’s all been leading up to. We set about developing and implementing a three-tiered negotiation strategy to dramatically reduce the reported shortfall and cut the client’s exposure.
Disruption: Reframing the audit narrative to emphasise vendor enablement failures and audit inaccuracies
Relationship-building: Positioning the client as a strategic partner, open to future collaboration and licensing evolution
Timing: Leveraging fiscal deadlines and audit fatigue to gain commercial concessions
Futureproofing
We never cut our clients loose just because negotiations are done and dusted and this time was no different. There was still some shortfall to be addressed and so we helped structure a three-year licence transition plan for the client that would ultimately create further savings.
A 4.3 million dollar sigh of relief
From stress and worry to a protected financial position, maintained operational continuity, and confident planning for the future. This is what happens when you combine audit defence expertise with commercial negotiation strategy.
The client was able to walk away $4.3 million better off and with a stress-free future for their business.
Challenge
A United States healthcare IT Services firm faced an aggressive Microsoft SPLA audit with $5.6 million at stake.
Results & Financial Impact
Initial exposure | $5.6 million |
Final settlement | $1.33 million |
Recognized savings (Stage 1) | $4.3 million |
Stage 2 savings (future commitment-based) | $1.33 million |
Avoided | Penalties and audit fees |
Secured | Continuity of operations |
Deliverables
Full Baseline Compliance Analysis
Data Validation of all data packets before submission
ELP challenges and Protocol of Disagreements
Strategic Negotiation Framework
Long-Term Value
Substantial cost avoidance and cash flow benefit
Improved internal SAM maturity and risk awareness
Positive relationship positioning with the vendor for future transactions
Transition to modern, scalable licensing models aligned with business growth