The calendar
- Q1
July 1 to September 30
The new fiscal year begins July 1, with fresh targets for the sales organization.
- Q2
October 1 to December 31
The first half closes at calendar year end.
- Q3
January 1 to March 31
Planning for the final quarter starts here.
- Q4
April 1 to June 30
The fiscal year closes. This is the quarter with the most riding on it for Microsoft's sales teams.
Why the timing matters
Like most large software vendors, Microsoft measures its sales teams on quarterly and annual results. As a quarter closes, and above all as the fiscal year closes in late June, there is more pressure to sign deals inside the period and more willingness to get concessions approved.
The effect is real but it is not automatic. A renewal signed on June 29 is not cheaper simply because of the date. It is cheaper when the buyer is prepared, has a credible alternative and is ready to sign inside the window.
What it means for a renewal
Timing matters, but it is not automatic. A renewal signed near quarter end is not cheaper because of the date. What matters is how the deal is prepared and negotiated in the time available.
Where Deal IQ comes in
This page covers what has changed and where the cost sits. Turning that into a better price on your contract is the negotiation itself. Deal IQ has run 270+ Microsoft negotiations covering $2.4B+ in contract value, with a network of 350+ former vendor sales, pricing and deal desk leaders that includes people who sold Microsoft. We negotiate directly with Microsoft or behind the scenes with your team, and our fee comes from the savings.
Frequently asked questions
When is Microsoft's fiscal year end?
June 30. Microsoft's fiscal year runs from July 1 to June 30.
When do Microsoft's fiscal quarters end?
September 30, December 31, March 31 and June 30.
Is it better to renew a Microsoft agreement at quarter end?
Often, if you are prepared. Sales teams have targets to meet as quarters close, especially at fiscal year end in late June. Timing helps most when license counts, product mix and alternatives are settled beforehand.
DEAL IQ IN NUMBERS