What You Need to Know About the New Microsoft Enterprise Agreement Changes
Microsoft is making significant updates to its Enterprise Agreement (EA) licensing program, with new rules taking effect on November 1, 2025. These changes will impact both commercial and government customers, so it’s crucial to understand what’s on the horizon and how to prepare.
Here’s a breakdown of the key changes and how they might affect your organization.
The End of Automatic Volume Discounts
Perhaps the most impactful change is the elimination of automatic price level discounts (Levels B–D) for Online Services. Starting November 1, all customers will default to Level A pricing, which is the public list price found on Microsoft.com.
This shift will affect a wide range of services, including:
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Microsoft 365
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Azure
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Dynamics 365
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Windows 365
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Security, Compliance, and Identity offerings
It’s important to note that these changes do not apply to on-premises software. However, for organizations heavily reliant on Microsoft’s cloud services, this change could lead to a significant increase in costs if not managed proactively.
EA Phased Out for Smaller Organizations
Microsoft is also redefining who can use the EA program. The EA is being phased out for organizations with fewer than 2,400 seats. These customers are being directed toward alternative licensing models like the Cloud Solution Provider (CSP) or Microsoft Customer Agreement (MCA).
The EA will remain an option for:
- Organizations with 2,400 or more seats
- Public sector customers (Government and Education), which will be reviewed on a case-by-case basis
If your organization falls into the category of fewer than 2,400 seats, now is the time to explore your options and plan your transition to a new licensing agreement.
What You Should Do Now
With these changes on the horizon, proactive planning is essential to avoid unexpected cost increases and ensure a smooth transition. Here are the steps you should take:
1. Review Your Renewal Timeline
If your Enterprise Agreement is set to renew after November 1, 2025, it’s critical to get a head start. Contact your ANM account manager for a comprehensive licensing review. We can help you understand how these changes will impact your specific situation and guide you through the process of transitioning to a Cloud Solution Provider (CSP) agreement.
2. Optimize Your Licensing
The upcoming changes are an opportunity to re-evaluate your licensing strategy. We can help you:
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Identify over- or under-licensed areas to ensure you’re not paying for services you don’t need.
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Prepare for the new pricing models and build a cost-effective plan for the future.
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Optimize costs, manage licensing, and ensure compliance across your organization.
Ready to Plan Your Transition?
Don’t wait until the last minute. The new Microsoft licensing options require careful planning and expert guidance. Our team is here to help you navigate these changes, optimize your costs, and ensure your organization is prepared for what’s ahead. Contact us today to schedule your licensing review and start your transition plan.
Chris Hinch
Microsoft Practice Director
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