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Microsoft is making a significant change to how Online Services are priced under the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA).
Starting November 1, 2025, the longstanding volume-based discount tiers (Levels A, B, C, D) for Online Services will be removed. Instead, pricing will align with the public list price published on Microsoft.com.
This update affects commercial organizations worldwide, with exceptions for U.S. Government and Education price lists. On-premises software pricing is not impacted.
How Microsoft’s 2025 Pricing Consistency Update Impacts Enterprise Agreement and MPSA
- Discount tiers are going away: The traditional EA and MPSA discount levels for Online Services (such as Microsoft 365, Dynamics 365, Windows 365, Defender, and others) will no longer apply at renewal or when adding new services not already on your Customer Price Sheet.
- Single price point: All eligible Online Services will now start at the same price as listed on Microsoft.com, regardless of organization size or previous discount level.
- Timing: The change takes effect at your next agreement renewal or when you add Online Services not currently listed on your price sheet after November 1, 2025.
Who is Impacted by Microsoft’s 2025 Enterprise Agreement Pricing Changes?
- Commercial and most government customers using EA or MPSA for Online Services will see this change at renewal or when adding new services.
- Exclusions: U.S. Federal, state, and local government price lists, as well as Education customers, are not affected. On-premises software pricing remains unchanged.
Why is Microsoft Standardizing Enterprise Agreement and MPSA Pricing?
Microsoft’s stated goal is to simplify and standardize pricing across all purchasing channels. This “pricing consistency” approach is already in place for Azure and is now being extended to other Online Services.
What to Consider for your Next Microsoft EA or MPSA Renewal
- Budgeting: Organizations that previously benefited from higher-tier discounts (Levels B, C, D) should expect price increases. Industry estimates suggest 6–12% depending on the previous tier.
- Negotiation: The focus shifts from automatic volume discounts to negotiated value, usage optimization, and selecting the right licensing vehicle.
- CSP as an alternative: The Cloud Solution Provider (CSP) program now offers pricing parity with EA and MPSA, plus flexible terms and partner services.
How to Get a Three-Year Price Lock with Microsoft CSP
For those who relied on EA’s three-year price lock, CSP now offers three-year subscription terms for Microsoft 365 E3 and E5 (with or without Teams), Teams Enterprise, E5 Security, and E5 Compliance. Minimum seat counts and specific billing rules apply.
What to do Before your Next Microsoft EA or CSP Renewal
- Inventory your agreements: List all Online Services on your Customer Price Sheet, renewal dates, and any planned additions after November 1, 2025.
- Model the impact: Compare your current pricing to the Microsoft.com list price to estimate the budget impact.
- Evaluate your options: Consider whether CSP or Microsoft Customer Agreement (MCA-E) is a better fit for your needs, especially if you value flexibility or require a three-year price lock.
- Optimize before renewal: Remove unused licenses, right-size plans, and negotiate based on actual usage and business needs.
Next Steps for Microsoft Licensing Decisions
Microsoft’s move to a single price for Online Services under EA and MPSA means organizations should baseline renewal budgets to the Microsoft.com list price and carefully evaluate whether to continue with EA or transition to CSP.
The introduction of three-year terms in CSP offers new options for price stability, but it’s essential to review your current agreements, model the impact, and optimize license usage before renewal.
If you have questions about how these changes affect your agreements or want to explore CSP as an alternative, our licensing experts are available to help. Reach out for personalized guidance or to discuss your options in detail.
