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A prominent beverage company based on the West Coast of the United States, employing 1,050 staff, faced a critical challenge in managing its Microsoft licensing costs. With a workforce spread across production, distribution, marketing, and administrative roles, the company relied heavily on Microsoft technologies to streamline operations and collaboration. As their Microsoft renewal approached in early 2025, the company sought a strategic partner to optimize their licensing agreement and reduce costs without compromising functionality.
The Challenge
The beverage company received a “best and final offer” from Microsoft for their renewal, totaling $2.45 million. This figure represented a significant increase over their previous agreement, driven by a shift in licensing structures and the need to modernize their digital infrastructure. The company had already begun exploring a migration to Microsoft 365 (M365) to enhance productivity and security, with a focus on adopting mostly E5 licenses for advanced features like enhanced security, compliance, and analytics. However, the initial pricing from Microsoft threatened to strain their IT budget, prompting leadership to seek expert assistance.
The Solution: Partnering with KontractOne
KontractOne, a trusted leader in IT cost optimization and vendor negotiation, stepped in to analyze the beverage company’s existing Microsoft environment, usage patterns, and renewal proposal. Our team conducted a thorough assessment of the company’s needs, aligning their licensing strategy with their migration to M365 and adoption of E5 licenses. Leveraging deep expertise in Microsoft negotiations, KontractOne identified opportunities to eliminate redundancies, optimize license allocations, and challenge Microsoft’s pricing structure.
Armed with detailed usage data and a clear understanding of the company’s goals, KontractOne engaged directly with Microsoft on behalf of the beverage company. Through strategic negotiations, we successfully reduced the renewal cost from the initial $2.45 million offer to $2.127 million—a savings of $323,000.
The Implementation
Beyond securing cost savings, KontractOne guided the beverage company through a seamless migration to Microsoft 365. The transition included deploying E5 licenses for the majority of their workforce, enabling advanced features such as Microsoft Defender for Office 365, Power BI analytics, and enterprise-grade compliance tools. KontractOne provided hands-on support during the rollout, ensuring minimal disruption to operations and empowering employees with training to maximize the value of the new tools.
The Results
Testimonial from the CFO
“Partnering with KontractOne was a game-changer for us. Faced with a $2.45 million Microsoft renewal price tag, we were concerned about balancing our budget with the need to modernize our systems. KontractOne not only saved us $323,000 but also guided us through a smooth migration to Microsoft 365 with mostly E5 licenses. Their negotiation expertise and hands-on support gave us confidence and delivered measurable value. I’d recommend KontractOne to any company looking to get the most out of their IT investments.”
Conclusion
This case study exemplifies how KontractOne empowers organizations to take control of their IT spending while aligning technology solutions with business objectives. For this West Coast beverage company, our intervention turned a costly renewal into an opportunity for savings and innovation. With $323,000 back in their budget and a modernized Microsoft 365 environment, the company is now better positioned for growth and efficiency in a competitive market.