This week Microsoft announced it’s making a major change to its licensing model for Online Services under the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA). This update will affect how organizations purchase and allocate budgets for services like Microsoft 365, Dynamics 365, Windows 365, and various identity and security solutions. This update builds on the consistent pricing model already in place for services like Azure, providing greater transparency and alignment across all purchasing channels for customers.
Key Takeaways
Volume-Based Discounts Are Ending for Online Services
Microsoft will remove volume-based pricing tiers under the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA). Regardless of size, all customers will pay a single consistent price for online services
Pricing Will Align with Microsoft.com
The new pricing model will align with the public list prices published listed on Microsoft.com.
On-Premises and Education Pricing Remain Unchanged
Pricing for on-premises software, U.S. Government, and Education sectors will remain unchanged, maintaining current discount structures for those categories.
Effective Date: November 1, 2025
Starting November 1, 2025, the new pricing structure will take effect at the customer’s next agreement renewal or when purchasing new Online Services not already listed on their Customer Price Sheet.
Strategic Shift Toward Consumption and Usage-Based Incentives
Microsoft is shifting away from user and device-based discounts and concentrating on consumption-driven models like Azure MACC (Microsoft Azure Consumption Commitment). Expect to see a move towards discounts aligned to strategic value and growth potential, not just volume.
Why This Matters and Considerations for EA Customers
This change is part of Microsoft’s broader strategy to simplify licensing and improve pricing transparency. It builds on previous actions such as eliminating Azure discounts in 2017 and the vision of establishing consistent pricing across all purchasing channels, enabling customers to select how they purchase based on the services and support they need to maximize the value of their investment rather than a licensing price point EA & MPSA customers may see significant price increases depending on their current tier. If you’d like help modeling the financial impact of this change on your current EA or exploring CSP/MCA-E alternatives, Trusted Tech is offering a no-obligation complimentary evaluation.
